Turkey's Leading Multi-Brand Used Car Auction Platform

A wholly-owned Borusan company since 2019 and the first multi-brand used car auction platform in Turkey, Borusan Araç İhale is an integral part of Borusan Group’s expanding network of automotive dealers. The company had 11,032 buyer members as of the end of 2020. Since 2001, the company has been organizing auctions for member dealers with used vehicles from fleet lease companies, independent dealers, authorized dealers, banks, insurance companies, distributors, and commercial fleets.

Strategic Positioning
Borusan Araç İhale is the leading multichannel and multi-brand auction company in the Used Car sector. Borusan Araç İhale also shines out among the rivals by being the leading trusted auction service provider between sellers and buyers.

Borusan Araç İhale diversified auction channels and managed to provide fast sales and premium prices to their customers in 2019. With the deployment of the CRM system, Borusan Araç İhale started to manage all customer operations centrally and provide a more personalized service to its customers. In cooperation with the group company Borusan Lojistik, Borusan Araç İhale can provide countrywide logistics service in addition to other value-added services such as fixed/mobile inspection and storage, and valuation.

Borusan Araç İhale can also provide easyto-integrate B2B Valuation service to automotive companies, thanks to the API based pricing system. This valuation tool (7/24 Fiyat) calculates the prices based on the real sales data, which is also its unique differentiator in the market.

The majority of the applications are developed by its local team in Borusan Araç İhale. They include, among others, the new fixed/mobile inspection tool, field management tools, portals of online services, and some mobile services. Borusan Araç İhale also transformed its inspection and photography areas to cutting-edge premises to obtain minimal inspection errors and the most realistic car pictures.

Competitive Advantages of Borusan Araç İhale
• Multi-channel auction and sales structure
• Development of CRM system
• New Live Auction System and the "Buy Now" sales option in the new system
• In cooperation with Borusan Lojistik
• Integration of B2B valuation service into automotive companies
• 24/7 pricing service as launched on the BiP platform,
• The Otonakit brand deployed in July 2020 providing cash purchasing services for retail customers,
• The majority of the applications are internally developed,
• 19 years of experience, recognition, customer portfolio, and service quality.

The Evolution of the Turkish Used Car Market in 2020
Contraction in the Turkish automotive industry since the third quarter of 2018 has changed its course towards growth once deferred demand made a comeback in the last quarter of 2019. This upward trend continued until the first quarter of 2020. The market, which saw a sharp and abrupt shrinkage during the COVID-19 pandemic, recovered quickly in parallel with the decline in confirmed cases owing to the restrictions implemented. Reluctance to use public transport in the face of the pandemic drove the demand for buying cars. As a result, first-hand passenger cars and the light commercial vehicle market concluded 2020 with a 61.3% year-on-year growth amounting to 772,788 units. Used car and light vehicle sales, on the other hand, rose by 4.6% to 7,963,917 units.

The Market Leader in Physical Auctions
Used car sales between corporate customers, who represent Borusan Araç İhale's main business areas, has contracted since Q4 2018 - a trend that continued also in 2020 due to the COVID-19 pandemic. The contraction was largely caused by the shrinking vehicle pool of operational fleet rental and Rent-A-Car companies in the market. Authorized dealers, a primary supply channel for the Company, opted for selling traded-in used cars to end-users directly so as to address growing demand in the period marked by an uptick in the market. Indeed, a significant portion of authorized dealers, upon the sharp rise in demand, became Borusan Araç İhale's buyer customers in 2020 in addition to their position as seller customers. In 2020, auction platforms of the Company served as key alternative channels where independent dealers, in particular, sold their vehicles quickly. As a result, sales of vehicles supplied from independent dealers exceeded the budget targets. Otonakit, a service that enables the purchase of personal cars in cash, was rolled out in five provinces and six campuses in July 2020. Otonakit is expected to be a core business area where Borusan Araç targets strategic growth in 2021.

2020 Business Results
• Operations of 23,749 cars have been handled in 2020, and a 49% success rate attained in the cross-sales of 11,676 cars.

Firm Steps on the Path to Digital Transformation
Borusan Araç İhale continued its digital transformation journey successfully in the 2020 operating period. The fixed/mobile inspection tool, field management tools, the new valuation practice, portals of online services, and some mobile services have all been internally developed by Borusan Araç İhale teams as part of digital transformation. Physical auctions were suspended during the COVID-19 pandemic, and all sales were moved to online channels. In addition to 724ihale.com, a new cyber-auction system was used after being developed via next gen tools and launched in late Q1 2020 for this purpose. Furthermore, fully functional

A wholly-owned Borusan company since 2019 and the first multi-brand used car auction platform in Turkey, Borusan Araç İhale is an integral part of Borusan Group’s expanding network of automotive dealers.

Otonakit and 7/24 Fiyat on BİP are among the services developed and rolled out in 2020.

Having invested TL 1.1 million in the digital realm in 2020, Borusan Araç İhale carried out the following projects:

• Cloud Migration Phase 1,
• Live Auction Stream Services,
• New Auction System,
• CRM,
• Technical enhancements for existing valuation services,
• Revamping financial portals.

Measures Taken to Fight Against the COVID-19 Pandemic
Borusan Araç İhale took prompt action right after the COVID-19 pandemic started. Taking Borusan Holding's principles as a guiding light, the Company rolled up sleeves to protect its employees, business processes, and stakeholders. Borusan Araç İhale made a shift to working from home/in alternating schedules to protect its employees while introducing rigorous measures in line with the depth and breadth of the crisis. Starting from March, all auctions were performed on online platforms. Furthermore, the Company offered value-added solutions, including end-to-end shipment and mobile valuation, to minimize partners' physical burden and thus eliminate the risk of their exposure to the virus.

An Auction for Good
Borusan Araç İhale launched İyilik İhalesi (Auction for Good) that blends professionalism and volunteerism. Borusan Araç İhale organized three auctions, one internal and two with the participation of Borusan group companies. Funds raised from the sales of the belongings volunteering Borusan staff no longer used were donated to Lokman Hekim Health Foundation and Koruncuk Foundation. In addition, the Company took part in social responsibility projects organized under the roof of Borusan Holding. These include Steptember, Education on the Hanger, İyilik Peşinde Koş (Run for Good), and projects aimed at Gender Equality.

A Look into the Future
Borusan Araç İhale adopts the continuous development principle of Borusan Holding and pursues the following goals for the future:

• Reaching greater customer portfolios through developing new products and services.
• Increasing the sales volume for fleet and rental companies in the light of solid marketing strategies.
• Reducing fixed costs by boosting efficiency through online transformation and digitalization.
• Ensuring the sustainability of qualified human resources.