The more than 2,000 sqm site combines a modern showroom and a 15-stall workshop, catering to both sales and service needs in one center to support the growth of these popular brands in the capital.
The Budapest expansion not only adds a significant location to the portfolio but also underlines the group’s commitment to the Hungarian market, where Renault and Dacia models are in high demand. Budapest represents a substantial share of the national market for these brands; nearly half of all Renault and Dacia vehicles in the country are sold in the capital.
Alongside the dealership’s opening, the listed auto retailer announced one of its first significant deals, providing 200 new Renault Clio vehicles to Wigo, its carsharing service. The Clios are expected to be available to Wigo users in Budapest by the end of October.
Péter Antal, retail business unit director at AutoWallis, emphasized that the new dealership marks a significant step for the group’s growth in Budapest. He noted that AutoWallis’ focus on Budapest reflects the unique dynamics of the urban market, with a high concentration of fleet and individual customers.
Integrating Wigo’s fleet expansion through the dealership strengthens the group’s broader goals of achieving operational synergy and enhancing cross-functional support. This collaboration, Antal explained, optimizes the company’s resources and ensures a more seamless flow of services between AutoWallis’ retail and mobility units.
Present in 16 countries in Central and Eastern Europe, AutoWallis expects 2024 sales to exceed last year’s figures significantly. The group had sold 36,346 new and used vehicles between January and the end of September, 4.1% higher than last year’s figures for the same period. The retail business unit saw the greatest increase after new vehicle sales grew by 19.7% to reach 7,196 vehicles and used vehicle sales by 31.8% for a total of 1,905 autos.
The acquisition of the Czech Stratos Auto’s three BMW dealerships, finalized at the beginning of July, contributed 6% to the growth. The retail sales increase of almost a fifth continues to exceed the Hungarian average 7.3% increase in the number of newly registered vehicles.
The service hours booked by the retail business unit increased by 13.8% to reach 151,050 (almost half of the growth, 6.6%, is due to the Czech acquisition).
AutoWallis Group sold 0.8% fewer new vehicles compared to the same period in 2023 for a total of 27,245 units (this difference was 5.8% at the half-year mark). The primary reason for the slight decrease was a drop in the first quarter, explained by both the base effect of exceptionally high previous sales (in Q4 2022 and Q1-Q2 2023) as well as the extended shipping deadlines in H1 2024 caused by threats to shipping in the Suez Canal and the Red Sea as a spill over from the Middle East conflict.
A more positive trend in the distribution business unit’s performance is shown by the fact that, following a fall in the first quarter of the year, sales figures grew from 9,277 units in Q2 2023 to 10,729 (+15.6%) in the second quarter of 2024, and from 6,966 units to 7,934 (+13.9%), comparing Q3 2023 and Q3 2024.
AutoWallis’ mobility services business unit (which includes the group’s short and long-term vehicle rental services as well as fleet management) saw a substantial increase in the number of rental events, topping out at 283,639 thanks to the acquisition of the Wigo carsharing business.
The fleet sizes of Wigo fleet management (previously Nelson Flottalízing), Wigo carsharing, and Sixt, operated by AutoWallis in Hungary, decreased by 1.6% to reach 3,853 units, primarily due to rationalization projects. The number of rental days in short-term vehicle rentals (Wigo carsharing and Sixt) grew by 3.8% to 157,042 days.
Regarding the sales data for the first three quarters, AutoWallis CEO Gábor Ormosy explained that they were in line with expectations, and growth is expected to continue throughout the remainder of the year.
As AutoWallis continues to broaden its footprint in Hungary and across the Central and Eastern European region, the group remains focused on cementing its role as a provider of both automotive retail and mobility services.
The new Budapest Renault and Dacia dealership will stand as a central element of this growth strategy, allowing AutoWallis to directly engage with a substantial customer base in the capital, where demand for these brands continues to grow.
“This expansion is anticipated to generate additional opportunities as AutoWallis capitalizes on the high demand for Renault and Dacia vehicles in Budapest and the broader potential for carsharing services in Hungary’s urban centers,” Ormosy said.
This article was first published in the Budapest Business Journal print issue of November 15, 2024.
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