Deutsch Automobile Group aspires to become total mobility platform
Deutsch Automobile Group, one of the biggest dealers in Korea's auto import industry, is zeroing in on becoming a total mobility platform company based on customer-oriented data and technology over the next decade.
'Going beyond the traditional concept of simply selling cars and doing repair works, my vision is to expand into a total mobility platform that can account for daily life of mobility such as (auto) sharing, subscription, finance, charging and digital experiences,' said Kwon Hyeok-min, vice chairman of Deutsch Automobile Group, in an interview with The Korea Herald at the firm's headquarters in Seoul on Thursday.
'In a macroscopic environment with relentless changes and challenges, I believe that our group's strategy to increase core capabilities through an open network through our value chain to make Deutsch Automobile Group move forward unwaveringly is going to be the foundation to realize that vision.'
Kwon has focused on revisiting the group's traditional business of auto dealerships, setting up mid- to long-term goals to further solidify the trust between customers, shareholders and employees since he became the vice president of Deutsch Automobile Group in November.
As a result of customer-focused retail strategies, diversification of business portfolio and strengthening the efficiency of internal operations, Deutsch Motors, the holding company of Deutsch Automobile Group, posted 578.2 billion won ($423.2 million) in revenue and 7.9 billion in operating profit in the first quarter of this year, up 21.5 percent and 52.9 percent, respectively, compared to the same period last year.
Kwon noted that he expects this year to bring meaningful returns from the company's multibrand strategy, which has expanded the auto import brands it deals from six — BMW, Mini, Jaguar Land Rover, Porsche, Audi and Lamborghini — in 2023 to nine this year with the additions of Aston Martin, BYD and McLaren.
Being one of the six local dealers for Chinese electric vehicle giant BYD, the chief of Deutsch Automobile Group pointed out that the performance of BYD cars exceeded his expectations and was very satisfactory.
'We want to discuss with BYD Korea to offer more competitive prices for customers so that they can experience the brand's vehicles,' said Kwon. 'Because each customer knows very well about (cars), products without fundamentals cannot be delivered. As we have confidence in BYD's product, we are aiming to provide experiences to feel the brand and its strengths.'
As for McLaren, the latest super luxury partner brand Deutsch Automobile Group represents in Korea, Kwon said a rebranding ceremony slated for early July will offer a more up-close experience for potential customers.
'We will have a VIP coming to Korea (for the rebranding ceremony) from McLaren headquarters,' he said. 'Our goal is to deliver the brand's philosophy and give a unique brand experience, which is more personal and private for high-end customers to establish close ties.'
Cars after sale
Kwon pointed out the importance of covering the full life cycle of vehicles, including the sectors of used cars and recycling auto parts, for Deutsch Automobile Group. Deutsch Autoworld's Charancha and DT Innovation were mentioned as two key pillars to that end.
Based on Deutsch Autoworld — the world's largest single car dealership building verified by the Guinness World Records in 2019 with 167,046 square meters of showroom area capable of displaying about 12,000 cars at once — in Suwon, Gyeonggi Province, Characha is looking to go beyond an online used car platform to make the used car market more transparent, according to Kwon.
'As for Charancha, we are working on a project based on Web3 with partners to advance it into a mass platform that handles all transportation services such as used cars, rentals and car deliveries,' said Kwon.
'We signed (a memorandum of understanding) with SK Speedmate to develop an extended warranty service for used cars. With the extended warranty, customers can visit an SK Speedmate center for repair works, and we are going to manage records through blockchain technology to make tampering impossible. In this way, Charancha customers have nothing to worry about cars having a tampered maintenance history.'
On top of keeping a car's maintenance history secured, Kwon also underscored that Charancha is preparing to launch a drive-to-earn, or D2E, service based on Web3 technology. The envisioned D2E service will offer various types of rewards to drivers depending on how safe, efficient and long they drive.
While Characha takes care of a vehicle's lifetime on the road, DT Innovation deals with the afterlife of a vehicle as it works in the downstream part of the auto industry through recycling. DT Innovation's current business areas include recycling parts of used cars, auctioning damaged cars, and selling and buying used car parts with the intention to expand into recycling used batteries from electric vehicles in the future.
'We launched a service called DT Auction early this year to offer a more convenient way to deal with auto parts for retailers and individuals,' said Kwon. 'To this end, we took over an auto salvage yard in South Gyeongsang Province to bolster the trading of used auto parts. DT Innovation's objective is to create maximum value from decommissioned cars and a sustainable circular economy.'
As Deutsch Automobile Group progresses towards becoming a total mobility platform, Kwon emphasized that its highest value will always be about customer satisfaction under the company's philosophy of righteous business administration.
'We are looking to offer active support and growth opportunities to employees so they can become global talents in a fast-changing industry environment,' he said.
'Through this, Deutsch Automobile Group aims to become a name that is trusted both at home and in the global market as a main company that advances technology, customers, humanity and society in a sustainable mobility ecosystem.'
The Top 100 Global Innovators series spotlights the trailblazers shaping Korea's future across a range of industries — from bold entrepreneurs and tech pioneers to research leaders — whose innovations are making a global impact beyond Korea. More than a celebration of success, the series offers a deeper exploration of the ideas, breakthroughs and strategies driving their achievements. — Ed.
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