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- Exploring the Automotive Industry - An Interview with the CEO of eCarsTrade
Exploring the Automotive Industry - An Interview with the CEO of eCarsTrade
Filipp Sevostianov, the CEO of eCarsTrade, shares his thoughts about the used car industry, the post-pandemic automotive world, and what’s in store for the future of eCarsTrade.
In a dynamic automotive landscape where innovation and convenience intertwine, online car auction platforms have emerged as a transformative force in the used vehicle market.
We sat down with our CEO, Filipp Sevostianov, to catch up on the state of the used car industry in a post-pandemic world and eCarsTrade's place in it.
With his inspiring passion for the automotive industry and deep business knowledge, Filipp offers us a glimpse into the trends shaping the automotive industry and the thriving state of the used car market.
As the driving force behind their platform's success, Filipp embodies a unique blend of professionalism and approachability. By prioritizing customer experience above all else, his vision continues to establish eCarsTrade as a trusted marketplace where car traders can confidently navigate the nuances of the used car market.
Throughout this interview, we'll explore the automotive industry trend, factors influencing consumer behaviors, emerging technologies, and the platform's adaptability to changing demands.
eCarsTrade: Hi Filipp, thanks for sitting down with me today for this interview! Let's start off strong - what trends/challenges/changes do you see in the European used car market currently, and how are they affecting your business?
Filipp: The automotive industry has always been very dynamic, and what we're witnessing currently in the European used car market is a variety of changes that all have roots in our current inflationary environment.
Inflation has introduced new dynamics and considerations into the used car market - for example, enormously increased interest rates make money more expensive. Compared to just a couple of years ago, when investors purely focused on the growth of companies, now it's all about profitability and cost-efficiency. Which makes it very complicated for new or inefficient players to enter the market. Or stay in the market.
The used car market has had a pricing roller coaster in the last 2-3 years. Prices skyrocketed during the pandemic and are now getting back to normal. However, there is still quite a lot of uncertainty due to rapidly-changing interest rates, huge price discounts for new cars (Tesla, for example), transport delay issues, and many other factors.
eCarsTrade: What trends have you noticed among traders who use our online auction platform eCarsTrade?
Filipp: It's always super interesting to see what the preferences of our traders are, based on where they're buying from and the current state of the used car industry. We're definitely seeing a growing interest in plug-in hybrids.
Diesel and petrol cars are losing their share in auctions while more and more hybrid and electric vehicles are being sold. As environmental awareness and various new regulations continue to rise, traders recognize the value and market demand for these hybrid vehicles. However, diesel and petrol still hold their dominant position and will continue to do for some time.
We're always trying to keep our finger on the pulse of the industry - looking at how traders bid, which vehicles they're purchasing, and why. It's essential to evolve and change as our clients do.
eCarsTrade: How do you see the online presence of dealers evolving?
Filipp: What we know for sure is that the digital world will only become more digital. Before, we had physical auctions; now, online auctions work just the same, if not even better. Sources like Mckinsey, who wield enormous authority in the automotive world, predict that we're not too far from virtual reality shaping the shopping experience, both for automotive professionals and private consumers. That's a really exciting future, honestly.
“Compared to just a couple of years ago, when investors purely focused on the growth of companies, now it’s all about profitability and cost-efficiency.”
eCarsTrade: How does eCarsTrade differentiate itself from other car auction marketplaces in the European used car market?
Filipp: We have a unique combination of our own stock of vehicles and vast experience in the automotive industry as a wholesale trader. This experience allowed us to learn first-hand what car traders need or struggle with. When we were building our platform, we put this precious knowledge to use and tried to make our IT product in a way that would most efficiently address those pain points.
We invest a lot of our time and efforts into the IT part of our business, which makes us not just an automotive company but primarily an IT company. We worked, and continue to work, really hard on our product. It wasn't something ready to go right out of the box.
Our platform is tailormade to our needs and the needs of our customers. Whichever features they need, we are more than happy to add. This willingness to adapt to the client is something that sets us apart.
eCarsTrade: 2020 was a rollercoaster of a year for everyone. How has the pandemic shaped eCarsTrade and you as the CEO?
Filipp: In March 2020, sales dropped by more than 80% and remained low for a couple of months. No one knew what would happen next, so after being depressed those first weeks (laughs), I calmed down and started working on things I didn't have time for.
The pandemic allowed me to focus more on the future of our company and its long-term roadmap, like which new things we want to roll out, how to pivot the business and make things more efficient, etc. In such a global market slowdown, an opportunity arose to work on the strategic, operational areas of our business.
We all know what happened next. The semiconductor crisis led to an increased demand for used cars, and sales suddenly surged. Since then, it's been a rollercoaster, but a good one! The automotive trading industry, pandemic or not, teaches you to have patience and always keep your long-term plans in sight.
“Our platform is tailormade to our needs and the needs of our customers. Whichever features they need, we are more than happy to add. This willingness to adapt to the client is something that sets us apart.”
eCarsTrade: What advice would you give to a trader looking to enter the European used car market, and what are the keys to success in this industry?
Filipp: Being passionate about what you're doing is probably the most important thing in any line of business. Or life in general. Keep trying new things until you find the one you're passionate about, and stick with that one. When you actually enjoy what you're doing, you'll do it much better.
As for running a car business, you'll obviously need to be passionate and knowledgeable about cars and the automotive industry. Surround yourself with people, whether they are partners, employees, or suppliers, who share that passion. Customers will feel that and choose to work with your business over others.
“We invest a lot of our time and efforts into the IT part of our business, which makes us not just an automotive company but mainly an IT company.”
eCarsTrade: What do you see in store for the European used car market in the next year or two?
Filipp: As we mentioned before, the automotive industry is a rollercoaster, and it won't stop being on in the future. At the moment, the evolution of European regulations in terms of electric vehicles brings us quite a lot of uncertainty. For example, Germany just struck a deal with the European Commission about phasing out internal combustion engines. We are looking at a future with e-fuels and new CO2 standards for cars.
The supply of new electric Chinese brands is rising - this will also affect the automotive landscape. Also, there might be considerable changes in taxing private and company vehicles. This will, in turn, reflect on the buying behavior of both car traders and private individuals.
I also keep up with market updates by reading the eCarsTrade blog, where we regularly publish market analyses and industry trends. They told me to say this, haha.
“The automotive trading industry, pandemic or not, teaches you to have patience and never lose your long-term plans out of sight.”
eCarsTrade: eCarsTrade is steadily growing. What would you like to see for the platform in the next few years?
Filipp: We're definitely aiming at further internationalization and improvement of our digital product. We also want to add more extra services such as improved logistic assistance. As far as our vehicles go, we aim to add more cars to our offer (and a more extensive diversification of them).
eCarsTrade: Thank you so much, Filipp. It's been great hearing your thoughts. Any closing thoughts for our readers?
Filipp: A big thank you to all of our clients! We appreciate your loyalty to our company and our service. Without our clients, we definitely wouldn't be where we are today. Your feedback is always super appreciated, and we'll continue working on providing the best possible service.
