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November 18, 2020

Auto Palace strengthens its position on the Czech market

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In the second half of this year, Auto Palace automotive group opened three new sales and service centres for Volvo, Volkswagen, Audi and Seat brands. For a leading domestic automotive group, this year’s investment in Prague and Karlovy Vary marks a significant milestone in business activities in the territory of the Czech Republic.

A brand-new Auto Palace Group’s sales and service centre implemented in the spirit of the VOLVO Retail Experience concept was opened at the beginning of August in the territory of Prague 9 – Vysocany at Podebradska street. Here, the group built up a comprehensive space with unique service background equipped with state-of-the-art technology and a spacious sales showroom. Due to its layout, the space ingeniously combines sales of new cars and cars under the Volvo Selekt programme, i.e. well-examined second-hand cars. The building also includes, as its integral part, extensive service facilities implemented in the spirit of the Volvo Personal Service concept which offers the customers quite an individual approach in the maintenance of their cars. The workplaces are equipped with the most sophisticated technology available. “We decided to invest approximately 160 million Czech crowns in cooperation with Volvo and to build up a state-of-the-art dealership with superior background without compromises. The architectural design of the whole structure allowed us to harmoniously interconnect the sale of new and second-hand cars whereby we fulfil one of our strategic visions, i.e. to move the quality of sale of used cars to a brand-new level,” said Radek Donner, Managing Director of Auto Palace Group, in August at the opening of the new Volvo dealership in Prague.

Not even two months after the opening of the Prague dealership in Vysocany, the Auto Palace Group announced another but equally important investment when it opened additional two new branches in Prague and in Karlovy Vary at the beginning of October. The new acquisition brought a comprehensive offer of the major brands of the Volkswagen Group. In addition to strengthening its position in the area of fleet deals, the new branches were opened also to ensure a sustainable strategic growth in used car sales. Auto Palace Prague – Airport branch located near the municipality of Tuchomerice in the Prague-West area offers the sales of group car brands of SEAT and CUPRA and authorized service facilities for SEAT, CUPRA and ŠKODA brands. The Karlovy Vary branch comprises Auto Palace Group’s new sales and service centre for group car brands of AUDI, VOLKSWAGEN and VOLKSWAGEN Commercial Vehicles supplemented also by authorised service facilities for ŠKODA cars.

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Auto Palace Prague - Airport

As a result of these significant acquisitions, Auto Palace becomes the largest car dealership group in terms of the total number of represented brands. In addition to the current ten car brands in the market in the Czech Republic and Slovak Republic, the group has now added five additional brands. However, the group is expected to strengthen significantly also in business activities related to sales and purchases of used cars because the Auto Palace Used Cars division will newly operate a network of eight second-hand car dealerships in the Czech Republic and Slovak Republic, including sales of used premium cars. The objective is to exceed the sales limit of 5 thousand used cars during the next year. The commencement of operation of both new branches in Prague and Karlovy Vary in the total investment value of additional almost 150 million Czech crowns has quite fundamental significance for the fleet strategy. “We will now make the unique range of services and mobility solutions under the Auto Palace brand accessible to customers in yet another region of the Czech Republic. For Auto Palace Group, five new group car brands in our portfolio means the ability to offer a comprehensive composition of cars in the vast majority of segments. Therefore, we now have great expectations which, in concrete terms, should mean exceeding the total sales limit of 15 thousand cars in 2021. This is also why I perceive the opening of the new dealerships as a significant milestone in our business activities.” comments Radek Donner the Group’s new acquisitions and overall strategic development.

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Radek Donner, Managing Director Auto Palace Group

As such, Auto Palace Group is a clear example of a company with strong foreign background which, despite the current difficult state of the Czech economy caused by the restrictive measures in the fight against the coronavirus, was able to find opportunities to significantly strengthen its position in the domestic automotive market.

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