Auto Hall’s activity was penalized by the sluggishness of the automotive market, both nationally and internationally. However, the Group is maintaining its investments and enriching its automobile offer.
“Auto Hall’s strength is its distribution network, its diversified portfolio and its human capital”. This is how Jamal Eddouhbani, CEO of the Group, describes the automotive distributor’s resilience in the face of the crisis in the sector. It must be said that at the end of August, the national car market for new vehicles only reached 107,007 units, down 9.6% compared to 2021. Sales of passenger cars fell by 8, 2% and those of light commercial vehicles by 20.4%.
An impacted activity by supply
Thus, and given the sluggish national and international context, Auto Hall Group sales amounted to 13,700 new vehicles at the end of August 2022, down 27% compared to the same period of the previous year. However, these figures show an increase of 8% compared to the end of August 2019. Indeed, sales of passenger cars fell by 8.2% and those of light commercial vehicles by 20.4%, due to the difficulties of supply of vehicles from manufacturers, outside Asia.
This situation is also valid for the rest of the national automotive market, given the semiconductor crisis, which should continue to negatively impact the market. That said, according to management, we expect a gradual relaxation from the first quarter of 2023. For their part, sales of agricultural tractors, at Auto Hall, experienced a sharp contraction (-46%). , mainly due to drought. In addition, the automobile group performed well in the activity of industrial vehicles during the first half, with a 14% increase in sales. Eddouhbani ensures that “we maintain our leadership in the industrial vehicle and light commercial vehicle markets with market shares (PDM) of 40%”. Note that Auto Hall occupies a market share of 8.2% for private vehicles, 39% for light commercial vehicles and 18% for agricultural machinery. In terms of financial performance, Auto Hall recorded a consolidated turnover of 2.46 billion dirhams, against 2.28 billion dirhams in the first half of 2021. For its part, the consolidated net result stands at 87 MDH against 201 MDH in 2021 and 77 MDH at the end of June 2019.
new brands join the portfolio
During the first half of the year, Auto Hall signed a strategic partnership with FCA Stellantis, for the distribution of the brands Abarth, Fiat, Jeep, and Alfa Romeo. “This partnership consolidates the collaboration between Stellantis and Auto Hall, already partners in the import and distribution of the Maserati and Opel brands in Morocco,” says the management of Auto Hall. The group has already started marketing these brands since September 1 through two showrooms, one located in Casablanca and the other in Marrakech. He plans to open a third showroom in Fez soon. Regarding the objectives of this new partnership, the general manager assures that “Auto Hall has a marketing objective of 700 vehicles, and wants to reach 10 branches in 2023, to reach a total of 18 branches in 2024. We envisage, in addition, to sell 29,000 units for the four brands by 2027”.
Autocaz performs
Launched about a year and a half ago, the used car subsidiary of Auto Hall is showing good commercial performance, according to the group’s management. To date, Autocaz has sold more than 1,400 cars, with a turnover of 166 million dirhams (MDH). At the end of this year, it expects to exceed 350 MDH in turnover and 3,000 vehicles sold. Note that, during the first half of 2022, Autocaz launched its intermediation service, and opened two new showrooms in Fez and Marrakech in addition to the one located at the historic headquarters of Auto Hall in Lalla Yacout in Casablanca. It should be recalled that, within the framework of the group’s investments in the first half of the year, the activity of its El Jadida branch was started after its reconstruction, and the launch of construction sites for new branches in the Regions of Rabat, Kenitra and Tangier.
Sanae Raqui / ECO Inspirations