Bilia Boston Consulting Group Matrix

XPeng's sales in Norway are positioned as a Star within Bilia's BCG Matrix. Norway's commitment to selling only electric cars from 2025, bolstered by significant subsidies, creates a fertile ground for EV adoption. In 2023, XPeng saw substantial growth in Norway, with registrations increasing by over 50% compared to the previous year, demonstrating strong market penetration in this EV-centric landscape.

Bilia's premium EV sales, particularly from brands like BMW, Mercedes-Benz, and Porsche, are classified as Stars due to the robust growth in the European battery-electric vehicle (BEV) market. This segment saw its market share increase from 12.5% in H1 2024 to 15.6% in H1 2025, with projections suggesting carmakers will achieve a 24% EV market share in 2025. Bilia's existing relationships with these luxury automakers are crucial for capturing substantial volume in this high-growth area.

The acquisition of BRK Lastvagnar Holding AB has re-established Bilia's strong foothold in the truck market through Volvo Trucks sales and service, positioning it as another Star. This strategic move is particularly impactful given the clear growth potential within the truck segment, effectively replacing a previously divested Mercedes Trucks business and highlighting a strategic pivot towards high-performing market segments.

XPeng's sales performance in Norway is also identified as a Star. Norway's commitment to exclusively selling electric cars from 2025, supported by substantial subsidies, fosters significant EV adoption. XPeng experienced over 50% growth in Norwegian registrations in 2023 compared to the prior year, indicating strong market penetration in this EV-focused economy.

Bilia's service business is a consistent performer, achieving 7% organic growth in 2024 and contributing significantly to profits. This segment is set for further expansion, driven by the accelerating European BEV market and the increasing need for specialized EV servicing and maintenance. Initiatives like MobiliaCare, which services all car brands, are key to Bilia's strategy to capture a larger share of this evolving market.

Volvo new car sales in Sweden are a significant cash cow for Bilia. Volvo represents approximately 35% of Bilia's total sales within Sweden, its most substantial market. This demonstrates a strong, established presence for the brand within Bilia's operations.

Despite a challenging new car market in 2024, Volvo's enduring reputation and consistent demand, especially from corporate clients, contribute to its stability. This resilience in a mature market solidifies its position as a reliable revenue stream.

The combination of a high market share and steady demand, even amidst economic fluctuations, makes Volvo new car sales a key contributor to Bilia's cash flow. For instance, in 2023, Bilia reported strong performance in its Swedish operations, with new car sales forming a substantial portion of its revenue.

Cash Cows represent business units with high market share in mature industries, generating more cash than they consume. Bilia's authorized service business is a prime example, contributing 74% of operational earnings in 2024 with a stable 7% organic growth and 12.2% margins by Q1 2025. Similarly, the used car sales segment, particularly for established models, provided dependable cash flow, with a notable 50% surge in deliveries in Q3 2024.

Within Bilia's extensive brand offerings, certain niche or less popular marques might exhibit persistently low sales figures and minimal market penetration in particular geographic areas. These brands typically operate within slow-growing market segments, especially when contrasted with their limited impact on Bilia's total revenue.

For instance, if a luxury sports car brand, known for its exclusivity, accounts for less than 0.5% of Bilia's total vehicle sales in 2024 and operates in a segment with projected annual growth of only 1-2%, it would likely fall into the Dogs category. Such brands may consume valuable resources, including marketing and service infrastructure, without yielding substantial returns, making them prime candidates for divestment or a significant reduction in capital allocation.

Bilia's legacy operations, particularly those tied to traditional internal combustion engine (ICE) vehicles and their associated services, are increasingly exhibiting 'Dog' characteristics. This is due to declining market share and stagnant or negative growth prospects as the automotive industry pivots towards electrification.

The divestiture of certain business units, such as the Mercedes-Benz trucking segment, further illustrates this strategy, indicating a proactive approach to shedding underperforming assets that likely fit the 'Dog' profile due to low market share and limited growth.

Even within the burgeoning EV market, specific segments like used EVs faced a downturn in late 2024, with Bilia's market share in this area contracting, potentially placing it in the 'Dog' quadrant if the trend continues.

Consequently, Bilia's strategic focus must involve careful management of these 'Dog' assets, potentially through reduced investment or complete divestment, to reallocate resources to more promising 'Stars' and 'Cash Cows'.

Bilia is making substantial investments in its circular business model, particularly in car dismantling for reusable spare parts. This strategic focus aligns with growing sustainability demands and the market's need for affordable components.

The used spare parts segment, while promising, is still developing. For instance, Bilia held approximately a 7.5% share of the Swedish used spare parts market in 2024. This indicates a significant opportunity for expansion, necessitating continued investment to capture a larger market presence and establish leadership.

Question Marks represent business units or product lines with low market share in high-growth markets. These require significant investment to increase market share, with the potential to become Stars if successful. For Bilia, this category often applies to newer ventures or expansions into less established markets or product segments.

Bilia's foray into new EV brands and expansion into emerging European markets, such as Poland or the Czech Republic for EVs, perfectly illustrates the Question Mark profile. These areas offer substantial growth potential but currently represent a low market share for Bilia, demanding strategic investment to build brand recognition and customer base.

The development of independent workshops and the growing used spare parts segment also fit this description. While the overall service market is strong, these specific initiatives are in their growth phase, requiring capital and strategic focus to capture a larger slice of their respective markets.

Bilia's digital sales initiatives, while tapping into a high-growth market, also fall into the Question Mark category. Their current penetration in purely online car sales is modest, necessitating investment in technology and customer experience to compete effectively.