CARSО Motors Eyes European Expansion Fueled by Chinese Brands
Translated & summarized from Bizportal by baba
CARSО Motors plans to expand its European operations, starting with the Austrian market and the Chinese brand Chery, aiming to become a major car importer. The company's strategy includes a "One Stop Shop" model and leverages a lean operational structure. This expansion is fueled by the significant growth of Chinese car brands in Europe, whose market share is expected to exceed 20%.
The story in 5 lines · by baba
- CARSО Motors aims for significant European car import presence, starting in Austria with Chery.
- CEO Itzik Veitz sees Austria as the beginning of a broader European expansion strategy.
- Chinese car brands' European market share has grown from 2-3% to over 11% and may reach 20%.
- CARSО's European model relies on dealers holding inventory to minimize company costs.
- The company plans to replicate its Israeli "One Stop Shop" service model in Europe.
CARSО Motors is aiming to establish its European operations as its next growth engine. At an investor conference in Tel Aviv, CEO Itzik Veitz outlined the company's plan to expand its activities outside of Israel, with an entry into the Austrian market using the Chinese car brand Chery serving as a foundation for further European expansion.
"Austria, in my view, is just the beginning," Veitz stated. "The strategy is to become a significant car importer in Europe, while we aim to broaden the range of brands we represent on the continent." He explained that after establishing its presence in Austria, the company plans to expand its service offerings, mirroring the model developed in Israel under the freesbe brand, which integrates vehicle sales with complementary services in a "One Stop Shop" approach.
The current European operation utilizes a lean fixed-cost structure, with local dealers holding a substantial portion of the vehicle inventory. This model allows CARSО to scale its business without bearing all inventory and distribution costs itself. The expansion is partly driven by the surge in Chinese vehicle sales across Europe. Veitz noted that Chinese brands held a mere 2-3% of the European car market one to two years ago, a share that has now surpassed 11% and is projected to exceed 20%.
Veitz also commented that "The Chinese see the Israeli market as their European testing ground." He believes that even stricter European regulations will not halt the expansion of Chinese manufacturers but will instead encourage them to increase local production, potentially through acquiring existing factories and later establishing new ones on the continent.