“If you live in Turkey or Pakistan and want to sell your car, one of the largest oil traders in the world will want to make a deal with you,” – jokingly noticed in Bloomberg that Vitol Group enters the used car market.
The company, which sold 8 million barrels a day in 2019, launched a new venture Vava Cars. The Vitol Group said it was going to create the most reliable platform for trade-in cars.
“The Used Vehicle Startup is the latest example of how major oil traders are trying to diversify their core business into buying, blending, transporting, and processing hydrocarbons,” Bloomberg said. The agency notes: Vitol says oil demand will peak in 2030, but in the meantime is investing in solar and wind power generation and energy storage. The trader has invested in a company that converts plastics into diesel fuel, while the other one produces liquid hydrocarbons from coal. Vitol also has projects on hydrogen.
Used car trading is a completely new business line for the trader. At the same time, prices for used cars in Turkey have soared, as they became a kind of insurance against inflation after the fall of the lira.
Bloomberg notes that Vitol has access to low-interest loans, as it needs billions of dollars in loans to pay for its daily operations in the oil market. The oil trader is also an unrivaled expert in using the situation in geographically diverse markets.
“Our revolutionary service allows you to buy and sell cars without any risks. We are the future of selling and buying used cars,” says Vava. In Turkey, the company will operate through the Vitol – Petrol Ofisi network, which has more than 1.8 thousand facilities throughout the country. It is the third-largest in Turkey by revenues. At the same time in Pakistan, the trader has 40 percent in Hascol Petroleum Ltd, which is engaged in storage and retail sales of fuel.