Lotte Rental’s used car auction brand, Lotte Auto Auction, is celebrating its 10th anniversary. Since opening in March 2014 as Korea’s first simultaneous online-offline auction house, Lotte Auto Auction has established itself as a leading automotive auction venue, boasting an annual auction volume of approximately 50,000 vehicles and the highest bidding rates in the country.
The number of vehicles offered in its inaugural year was over 25,000, which has grown to over 55,000 by 2023, reflecting approximately 117% growth. Additionally, over the past decade, it has supplied over 510,000 vehicles through its own fleet, distribution business, and consignment auctions, playing a pivotal role as a hub in the domestic used car market.
The auction house operated by Lotte Rental has established advanced auction infrastructure, including a 4-Lane system that allows for the simultaneous auction of up to 1,500 vehicles, providing 32 indoor and outdoor photos from a 360-degree perspective, and automating vehicle pickups through unmanned kiosks. This advanced system has consistently increased membership and bidding rates, laying the groundwork for its emergence as the largest auction house in the country based on single scale.
This growth of Lotte Auto Auction can be attributed to its effective strategy of offering transparent vehicle information, including accident and maintenance histories, which has boosted customer trust. By leveraging its position as Korea’s leading rental car brand, Lotte Rent-a-Car, with a fleet of approximately 260,000 vehicles, Lotte Auto Auction supplies large volumes of high-quality used cars from vehicles less than five years old. The variety of vehicle types offered, including auctions of its rental cars, purchases from public sales and rental car customers, and consignment auctions from other rental and leasing companies, is also analyzed as a significant factor in its rapid growth.
Meanwhile, Lotte Rental is enhancing its used car export business based on its successful know-how in the Korean used car market. Lotte Auto Global, responsible for used car exports, was launched in 2019 and has expanded its global network, achieving a remarkable annual growth rate (CAGR) of 107.2% over the past five years in regions like the Middle East, thanks to its advanced online auction system. This year, plans are in place to establish a local subsidiary for direct used car exports to the United Arab Emirates (UAE). Lotte Auto Global has been awarded the “Export Tower” by the Korea International Trade Association, achieving $20 million in 2021 and $30 million in 2022, making it a two-time consecutive winner.
A representative from Lotte Auto Auction stated, “Over the past 10 years, Lotte Auto Auction has led the industry as a top brand, introducing the first 4-Lane system and presenting a new paradigm for automotive auctions in Korea. We will continue to do our utmost to maximize customer satisfaction at home and abroad through state-of-the-art facilities and unique used car products and services.”
Lotte Rental is the only comprehensive rental enterprise in Korea with a full lineup of automotive lifestyle services, ranging from Korea’s No.1 car rental brand, Lotte Rent-a-Car, to car-sharing service Green Car, used car auction house Lotte Auto Auction, and vehicle management company Lotte Auto Care. In November, Lotte Rental launched “Lotte Rent-a-Car My Car Save,” a new concept long-term rental service featuring only vehicles less than five years old from its fleet of over 260,000 managed vehicles.
Jin Sang Lee daedusj@autodiary.kr