In 2023, 5.3 million used vehicles were sold compared to 1.8 million new cars and Aramis is the European leader in the sector. Guillaume Paoli, co-founder and managing director of Aramis Group, explains to us why this market, and in particular that of reconditioned cars, is set for expansion in Europe.
franceinfo : The used electric vehicle market is still in its infancy. How to explain it?
Guillaume Paoli: In reality, today’s used cars are the new cars of four, five or six years ago. Four, five, six years ago, the market share of new electric cars was only 1.5%.
Is it also because these cars remain relatively expensive compared to a used vehicle?
Most people buy a used car for budget reasons or sometimes for ecological reasons. Some customers need an electric car, which best suits their needs, and others need a thermal car instead.
Do you think the used electric vehicle market will explode in the coming years?
Yes it is written, because today, approximately 17% of electric cars are sold in France. So in a few years, these 17% of new electric cars will be used electric cars.
So you are 60% owned by Stellantis, a merger of Fiat Chrysler and PSA Peugeot Citroën. Beyond the financial basis that this gives you, does it help you with supplies?
Yes, they sell us cars at preferential rates, just like the other companies that make up the Stellantis group. Moreover, it is an interesting development model. Since its creation in 2001, Aramis has been backed by an industrial partner, which behaves a bit like an investment fund, if you like, so we are very autonomous.
The ecological bonus remains high, up to 6,000 euros, to boost new properties. Is it at the expense of second-hand electrics?
Yes, at the margins. To encourage the adoption of new electric vehicles, it was necessary to go through these famous bonuses, since these are vehicles which still remain very expensive and unaffordable for most people. This is why the reconditioned vehicles we offer are a good alternative for those who want to equip themselves.
What is the difference between a reconditioned vehicle and a used vehicle?
A reconditioned vehicle is the best of both worlds. It’s reliable like a new car and it’s affordable like a used car. It is a vehicle that has undergone an entire industrial process. We have reconditioning factories, eight in Europe, including two in France. And in a production line, the vehicle will be appraised, benefit from a mechanical overhaul, overhaul of the bodywork, with a quality control at the end. And above all, there will be a lot of guarantees at the exit.
“The reconditioned vehicle will cost a little more than a traditional used vehicle, but it offers incommensurable guarantees.”
William Paoliat franceinfo
You are present in six countries, compared to only three 18 months ago. You have acquired and integrated competitors in Austria, Italy and the United Kingdom. Do we need to grow and increase volume in order to become profitable?
Aramis Group is an entrepreneurial company. We have a European ambition, we want to be the leader, the preferred platform for Europeans to buy a reconditioned car. And that involves European expansion. The path we chose is to acquire companies abroad, because that allows us to integrate teams who know local customers very well and who know local dynamics very well, because we are a company completely obsessed with customers.
Today you published your half-year results. You’re doing volume and at the same time, it’s an extremely difficult market. Is it difficult to become profitable in reconditioned cars?
This year, we will sell more than 110,000 reconditioned cars to private customers in the six countries in which we operate. And we are profitable. We have always been, except in 2022, which was a somewhat special year, due to the consequences of covid, the war in Ukraine, etc. It’s a distribution business, so the margins are not at all the same as with car manufacturers.
These are fairly low margins, hence the need to build volume.
Exactly and you really need to control all the links in the chain. So we control everything from the supply, reconditioning, logistics and sale of the cars.
What are the future prospects? Is this growth in the electric sector? Will it continue to expand internationally?
We have a three-point strategy. First, we want to grow in reconditioned vehicles because it’s an excellent offering and it really allows us to meet people’s needs. You should know that in Europe, two out of three Europeans go to work every morning by car. It’s the same in France. So automobile mobility is absolutely essential and the offer we are proposing seems to meet the needs of Europeans. There will mechanically be a little less cars on the road tomorrow in Europe, with the age pyramid, etc.
“We need to find solutions to ensure automobile mobility for Europeans and French people while limiting the impact on the environment.”
William Paoliat franceinfo
Second element, we want to expand in Europe because we have a European ambition, so we will continue. And finally we try to provide more and more services to our customers.
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