Tokić’s Focus is on Domestic Markets, with a Slowdown in Exports

The European automotive market is undergoing significant turbulence, which also applies to the automotive parts distribution market. In short, this industry is experiencing a period of intense transformation, characterized by high demand, structural consolidation, and technological changes. A key driver of demand is the increasingly pronounced aging of the vehicle fleet: in the European Union, vehicles are on average 12.5 years old, while in Croatia, according to data from the Croatian Vehicle Center, they are 14.8 years old. Of these, passenger cars are on average 13.3 years old.

In our region, this market is highly consolidated, and Tokić is one of the leading players. Ivan Šantorić, CEO of Tokić, will speak about the challenges of doing business in the automotive parts distribution segment during turbulent times at the traditional Lider conference, the Day of Big Plans, which will be held on September 23, 2026, at the Westin Hotel in Zagreb. According to him, the major challenges for the entire industry remain labor and workforce costs, to which Tokić Group responds by affirming its position among desirable employers, as well as through significant investments in digitalization and automation.

Market Influenced by Geopolitics

– In addition to the implementation of a new ERP system in the middle of this year, as a foundation for further technological development and digitalization, we are currently in the process of building an automation system in the new logistics-distribution center. The challenges faced by service workshops directly reflect on the operations of distributors, but at the same time create opportunities for additional development through education, professional support, and investments in advanced tools and service equipment, says Šantorić.

On the other hand, the market is still influenced by external geopolitical circumstances. This particularly relates to supply chains for base oils and certain raw materials, which can affect the availability of certain motor oils and additives, emphasizes the company’s leader. – Thanks to long-standing relationships with manufacturers, strong procurement, and membership in the international ATR organization, Tokić Group maintains a stable supply, but this is an area that requires continuous planning and inventory management, he emphasizes.

The company’s half-year consolidated report states that retail is experiencing strong growth (+14.1 percent), while revenues from sales of goods in third markets/exports fell by 10.3 percent, and the wholesale channel decreased by 7.1 percent. The report cites logistical constraints and changes in demand structure. Šantorić explains that the strong growth in retail is the result of strategic decisions that Tokić Group has systematically made in recent years to strengthen its retail network.

Preparations for Moving to the New LDC

– By taking over wholesale or franchise partners in certain regions and opening new branches, we have consciously increased the share of retail/own business, which has naturally reflected on the revenue structure of the wholesale/franchise channel, emphasizes Šantorić. He adds that the slowdown in export activities is also part of the same strategy.

– During the preparation and logistical consolidation period for the new logistics-distribution center, the Group’s developmental focus is directed towards further strengthening its presence in the domestic markets of Croatia and Slovenia. Logistical capacities are primarily directed to support existing partners, with a controlled slowdown in exports. At the same time, we are conducting extensive preparations for the move to the new automated distribution center. This includes optimizing existing inventories, adjusting warehouse processes, and implementing advanced demand forecasting and inventory management systems, along with an even higher level of artificial intelligence application, explained the CEO.

The company is also developing new business segments in parallel – the economic program, the motorcycle program, and the tools and service equipment segment – which represent significant potential for future growth. Regarding the logistics-distribution center, Šantorić states that full operational commencement is expected at the beginning of the second quarter of 2027.

– The new center will bring multiple times greater throughput of goods thanks to a larger usable warehouse volume, a significantly greater number of ramps for receiving and shipping, and a high degree of automation. This will allow us to process a far greater number of orders simultaneously, shorten the preparation time for shipments, and achieve a lower operational cost per delivery, emphasizes Šantorić.

The Highest Priority – Investment in People

Regarding business operations for the remainder of this year, Tokić’s Management expects a continuation of moderate wage growth, primarily as a result of market conditions and the need to retain quality employees. – In logistics and sales, investing in people remains one of our highest priorities. At the same time, we expect a gradual stabilization of logistics costs. The price of transport and certain raw materials is always prone to volatility, so we achieve most operational improvements through internal process optimization, digitalization, and preparation for the transition to the new logistics-distribution center, concluded Šantorić.

All these challenges and strategies for the future will be discussed in more detail at Lider’s Day of Big Plans, an unmissable political-economic event that has hosted over 5,700 participants and 300 speakers in the last 17 years.

This status will be confirmed again this year with its program and selection of speakers, mostly leaders from various industries in Croatia, world macroeconomists, representatives of the public sector, and state institutions, from whom we will learn firsthand what awaits us and how to successfully adapt to the unfavorable circumstances that the environment continuously imposes.

Don’t miss the opportunity to network with the most successful entrepreneurs, register in time to participate in the 18th Day of Big Plans, which will be held on September 23, 2026. at the Westin Hotel in Zagreb.