From the surge of electric vehicles (EVs) and the disruptive entrance of Chinese OEMs to the burgeoning opportunities in the used car sector, especially in the Gulf region, Peter Grøftehauge, CEO of Autorola Group, offers a wealth of insights. Drawing from Autorola’s extensive data analytics and his vast experience, he shes light on the challenges and opportunities that lie ahead for fleet owners, dealers, and the broader automotive industry.
At the heart of Autorola’s success is its robust use of data analytics. The company processes data from over 15 million cars daily, providing actionable insights into pre-owned market demand, pricing trends, and regional preferences. Grøftehauge emphasises the critical role of data in today’s automotive landscape.
“Data is the foundation of modern automotive decision-making,” he remarks. “In transparent markets like the UK or Germany, we can predict which dealer is most likely to buy a specific car based on historical sales. This precision helps our clients calibrate their pricing and inventory strategies effectively.”
However, not all markets offer the same level of transparency. “In regions like the Middle East, there’s less data availability online, making it more challenging. But the trend is clear transparency is a mega-trend, and markets will continue moving toward openness,” Grøftehauge adds.
Record Growth in the Used Car Market
Autorola recently achieved a significant milestone: selling over 27,000 used cars through its digital platform in a single month. This record-breaking growth underscores the increasing acceptance of digital platforms in a sector traditionally dominated by manual processes.
“Historically, car auctions were conducted in a very traditional way,” Grøftehauge notes. “With our digital platform, we’re seeing a significant shift toward more organized and data-driven processes. This change reflects broader trends in how people buy and sell vehicles, particularly in mature markets.”
The Middle East presents unique opportunities. With high vehicle turnover and a growing population of long-term residents, the region is ripe for transformation. Autorola’s partnership with Al-Futtaim Automotive has been instrumental in tapping into this potential.
Modernising the Gulf’s Automotive Market
In 2022, Autorola and Al-Futtaim Automotive announced a joint venture aiming to modernise the region’s used-car market. This collaboration introduced an integrated, end-to-end digital platform designed to digitise and simplify every step of the remarketing process.
Paul Willis, President of Al-Futtaim Automotive, summarised on the joint-venture at the time: “This venture is a vital component of our growth strategy and a historic first for our company to enter into the software business. Autorola is a leader in this field, and its complete end-to-end digital solutions allow us to serve a wider B2B customer base through a modern and digitised customer journey.”
Two years down the line, Grøftehauge offers insight into how the JV is offering a decisive vision for growing the used market.
“This collaboration is both strategic and synergistic,” Grøftehauge says. “Al-Futtaim Automotive brings credibility, knowledge of the local market and regulations, as well as proof of concept and operations. We bring the end-to-end digital solution, technological expertise, a wider pool of buyers with higher bid volumes, convenience for sellers, and transparency and traceability.”
The Autorola MENA digital platform is customisable and customer-focused. It offers modules for fleet monitoring, running fleet operations, ordering and repairs, booking, appraisals, and every step of the remarketing process. Features like transfer, storage, insurance, cleaning and inspection, pricing, a digital showroom, auction selection and management, and payment are all integrated.
“It also offers document sharing and collaboration tools, as well as an integrated ‘Fleet Chat’ platform,” Grøftehauge adds. “This makes emails, SMS messages, and phone calls with vendors and other partners unnecessary.”
A front-row seat to change
Electric vehicles are reshaping the automotive landscape, and Autorola’s data provides a front-row seat to this evolution. In regions like Scandinavia, EV adoption is well advanced.
“EVs are now mainstream in markets like Denmark, often cheaper than traditional vehicles due to tax incentives,” Grøftehauge explains. “We’re exporting EVs from countries like Italy and Spain to meet demand in the Nordics.”
In the Gulf, EV adoption is gaining momentum, especially in cities like Dubai. However, challenges remain.
“Extreme heat can affect battery performance and increase air conditioning loads, potentially impacting range during the summer months,” he notes. “That said, with continued government support, expanding infrastructure, and technological advancements, a steady increase in EV adoption is expected over the next five to ten years.”
The introduction of Polestar and the world’s number one EV brand, BYD, through Al-Futtaim Electric Mobility is playing a pivotal role in driving awareness, broadening consumer choice, and reinforcing the UAE’s transition toward sustainable transportation.
Chinese OEMs: A Disruptive Force
Chinese automakers are rapidly gaining traction in global markets, offering high-quality vehicles at competitive prices.
“I’m very impressed with what Chinese brands are doing,” Grøftehauge remarks. “They’ve overcome early scepticism and are now delivering vehicles that meet international standards. Their rapid growth is creating significant competition for traditional OEMs, particularly in Europe.”
This competition affects both new and used car markets. “As Chinese vehicles enter the market, they’re putting pressure on prices. Fleet owners and dealers need to adapt quickly to this new reality, and data-driven decision-making will be more critical than ever,” he emphasises.
Fleet owners face a complex landscape, balancing overcapacity issues with the transition to EVs.
“Fleet managers are under pressure to optimize operations while preparing for the shift to electric fleets,” Grøftehauge says. “Our platform provides insights into residual values, maintenance costs, and market demand, enabling fleet owners to make informed decisions.”
He highlighted the importance of understanding market trends, especially in the post-COVID-19 era where volatility is the new norm.
“During the pandemic, there was huge demand and limited supply, pushing prices to record highs,” he notes. “Now, as production capacity returns, we’re seeing significant downward pressure on prices. This volatility makes access to real-time data more important than ever.”
Expanding Across the Middle East
Autorola sees immense potential in the Middle East and plans to expand beyond the UAE into other countries, notably Saudi Arabia.
However, the Gulf region presents unique challenges and opportunities. While the used car market in the UAE is valued at $14 billion and expected to grow to $20.5 billion by 2025, it remains a market in transition. Grøftehauge pointed to the high turnover of vehicles and the growing demand for reliable, affordable options among long-term residents as key drivers of growth.
“The Gulf’s used car market is at a tipping point. With increasing digitalisation and consumer trust in online platforms, we’re seeing a shift toward a more structured and transparent ecosystem,” he says.
Autorola’s platform is designed to address the region’s specific needs, offering features such as fleet monitoring, appraisals, and a “Fleet Chat” function that eliminates the need for emails and phone calls. This seamless integration is helping to modernise the market and attract a broader range of participants.
“KSA is a large and diverse market, and its Vision 2030 initiatives are driving significant economic and societal change,” Grøftehauge says. “With the rise of digitalization and increasing consumer trust in online platforms, the time is ripe for Autorola to establish a presence there.”
The platform is built to cater to all car brands and corporations, with client data kept secure on AWS servers and treated as highly confidential.
“Our goal is to create a more organized, progressive, and world-class business ecosystem, especially within the context of the used-car market which currently seems very unorganised,” he adds.
The Importance of Human Insight in the Age of AI
While technology and data analytics are crucial, Grøftehauge emphasized the irreplaceable value of human insight.
“AI and data can provide us with incredible tools, but they can’t replace the nuanced understanding that comes from human experience,” he says. “For instance, AI might predict trends based on historical data, but it can’t account for sudden market shifts caused by geopolitical events or unexpected economic changes.”
He cautions against over-reliance on technology without human oversight: “If 70% of AI predictions are accurate but 30% are not, relying solely on AI can lead to significant business risks,” he notes. “The combination of data analytics with human expertise is where real value lies.”
Navigating Post-Pandemic Market Dynamics
The COVID-19 pandemic brought unprecedented challenges but also accelerated certain trends in the automotive industry.
“During the pandemic, there was a huge supply shortage, and prices soared,” Grøftehauge recalls. “Now, we’re witnessing a market correction. Understanding these dynamics is crucial for businesses to navigate successfully.”
He believes that the next five years will be turbulent but also filled with opportunities. “The market is not big enough for everyone’s growth ambitions,” he says. “Some players will need to merge, shift strategies, or risk exiting the market. Data-driven strategies will be essential in managing risk and capitalizing on opportunities.”
Grøftehauge also believes the Gulf region is uniquely positioned to become a global hub for automotive innovation and exports. “The region has the infrastructure, strategic location, and growing population of long-term residents to drive demand for reliable, affordable vehicles,” he says.
Autorola’s focus on digital transformation, transparency, and efficiency aligns perfectly with these goals. “Our partnership with Al-Futtaim Automotive is just the beginning. We’re committed to creating a world-class ecosystem that sets new standards for the used car market in the Middle East and beyond,” he says.
As the automotive industry faces unprecedented challenges, from the rise of EVs to the impact of Chinese OEMs, Grøftehauge remains optimistic about the opportunities ahead: “The industry is transforming at a rapid pace, but with the right tools and partnerships, we can navigate this complexity and emerge stronger.”
With its cutting-edge platform, extensive data capabilities, and strong regional partnerships, Autorola is well-positioned to lead the transformation of the automotive market in the Gulf and beyond. “Whether it’s through our partnership with Al-Futtaim Automotive or our plans to expand into Saudi Arabia, we’re committed to delivering solutions that drive success in this rapidly evolving market,” Grøftehauge remarks.
“The challenges we’re facing — from the rise of EVs and Chinese OEMs to post-pandemic market shifts — also present immense opportunities for innovation and growth,” he says as the interview concludes. “Autorola is committed to helping our clients navigate this complex landscape. With our cutting-edge platform, extensive data capabilities, and strong regional partnerships, we’re well-positioned to lead the transformation of the automotive market in the Middle East and beyond.”