Online car sales platform Carwow is on track to reach a 100 million-a-year sales milestone this year, despite fragile consumer confidence and the sluggish uptake of electric vehicles.
The company charges car dealers a fee for each genuine buyer inquiry or successful lead they receive through the platform. Carwow has grown rapidly in recent years, fueled in part by its popular YouTube channel, hosted by influencer Mat Watson, which boasts more than 10 million subscribers.
Carwow, which acquired Auto Express magazine last year, attracted 115 million unique visits to its website in the past year. Additionally, its network amassed over 1 billion YouTube views, making it the most watched car channel in the world.
“Some nine million people change their car every year,” said Chief Executive John Veichmanis. “We see most of them.”
Sales rose by 55 percent to 85.1 million in 2024, with more double-digit growth forecast for this year. However, operating losses increased from £1.3 million to £16.5 million, according to the latest accounts. Veichmanis explained, “We could be profitable tomorrow if we didn’t invest in the business.”
Carwow is backed by US buy-out group Bessemer, which invested an additional £40 million last year to fund technology development. Staff numbers grew significantly, rising to 509 from 338. Veichmanis noted, however, that the increase in employer national insurance announced in the last Budget “really hit the business.”
Chinese-owned car brands are performing “phenomenally well” on the platform, particularly the best-seller Jaecoo, Veichmanis added. Despite the recent cyber attack on Jaguar Land Rover’s parent company JLR, there remains “huge” demand for Land Rovers and Range Rovers.
Sales of electric vehicles have been disappointing, partly due to zero-emission cars no longer being exempt from vehicle tax. Veichmanis suggested that the Government might replace road tax and fuel duty with a pay-per-mile road pricing scheme in November’s Budget, which could generate “significant revenues” for the Treasury.
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