The AutoWallis Group remains committed to its strategic ambitions and growth trajectory despite the challenging automotive market environment, the subdued performance of traditional brands, and the initial costs associated with launching Chinese brands. The company expects the accelerating market transformation, alongside intensified business development activities, to enable it to complete several acquisitions, supporting the achievement of its targets for 2028.

AutoWallis, a leading integrated automotive and mobility service provider in the Central and Eastern European region, continues to follow the course set out in its strategy presented in 2024. Gábor Ormosy, CEO of AutoWallis, emphasized that achieving the targets requires not only organic growth and active business development but also the successful completion of the acquisitions envisaged in the strategy. The CEO explained that the operating environment is significantly affected by the rapid entry of numerous Chinese brands into Europe, including the Central and Eastern European region, a key market for AutoWallis. This trend has a twofold impact. On the one hand, it creates significant price competition across the market and puts traditional (incumbent) brands at a disadvantage. On the other hand, the market launch of these new brands entails significant start-up costs in the short term for their distributors, including AutoWallis. The automotive company listed on the Budapest Stock Exchange expects the new brands added to its portfolio to offset the decline of incumbent brands over the strategic horizon; in the short term, however, they weigh on results, while other developments and the diversified portfolio support stable growth over the longer term. Gábor Ormosy pointed out that the strategic focus of AutoWallis continues to be on expanding its importer portfolio, strengthening its retail presence, and developing its mobility business, which support sustainable improvements in earnings capacity and growth over the long term. A significant portion of the Group-level measures aimed at improving operating efficiency has been completed; however, some of these measures will only take effect across the entire portfolio in the coming period. The developments implemented by the company, the opening of new dealerships, and the addition of new brands to the portfolio may increasingly contribute first to revenue growth and then to profit growth later on. The CEO confirmed that AutoWallis continues to grow despite constantly evolving challenges and that both its previously set strategic course and the conditions for regional consolidation remain in place. The results achieved to date and the solid balance sheet provide a sound foundation for continuing the consolidation strategy, which management continually adapts to market realities. The current market realignment is putting pressure on earnings in several ways in the short term. Over the longer term, however, these changes will underpin earnings and open up new business development and acquisition opportunities for AutoWallis, further strengthening its role in the consolidation of the Central and Eastern European automotive market.

Further information: Investor Day presentation