Kamux's Diesel Dilemma: Riding Out a Powertrain Shift

A Sudden Powertrain Shift

Kamux's second quarter of 2026 was defined by an abrupt change in consumer preference. As CEO Juha Kalliokoski put it, “There was a significant shift in demand between powertrains in Q2, affecting especially demand of diesel cars.” — Juha Kalliokoski, CEO · 2026-08-12 The company responded with a deliberate push on inventory turn, which allowed volumes to grow even as the broader used-car market contracted in every operating country. Yet the price pressure on diesel vehicles was severe: “This led to gross margin decreasing from EUR 24 million to EUR 20.8 million, mainly due to the lost margin in diesel cars.” — Juha Kalliokoski, CEO · 2026-08-12

The decision to prioritize velocity over margin was a strategic pivot. When asked how inventory was managed, Kalliokoski explained the trade-off:

It's more important to push the inventory out those diesel cars and take less margin compared -- the other option that you are waiting and wishing at some point after some months, the diesel car demands are and prices are going up and you get more margin.

Geographic Divergence and Structural Moves

Finland, Sweden, and Germany painted divergent pictures. In Finland, Kamux reclaimed its position as the largest used-car seller but saw revenue dip 1.4% as average prices fell. Sweden was the bright spot: volumes grew substantially, external revenue jumped 40%, and gross margin improved, helped by new leadership under Niklas Eriksson. Germany remained the weak link, with profits pressured by the diesel slump and average selling prices deliberately kept lower to drive diesel car turnover. The company also tightened its network, closing two showrooms in the Hamburg area and consolidating operations into Nedderfeld. CFO Enel Sintonen noted that both closed stores "were already long-term negative in operating results," so the move should provide a modest tailwind.

The broader macro backdrop added another layer. The year's earlier comments about the Iran war were again referenced, with Kalliokoski noting, “When this Iran war started and we saw how much the demand for the diesel cars decreased” — Juha Kalliokoski, CEO · 2026-08-12 — a reminder that geopolitical shocks can swiftly alter used-car demand. This connects to the global keyword Middle East conflict, which has been rising across markets, though for Kamux the transmission mechanism is specific: a glut of diesel inventory and compressed metal margins.

Looking Ahead: Strategy Update and Inventory Discipline

Kamux's guidance for 2026 remains unchanged — adjusted EBIT is expected to rise from the prior year — even though the company is currently EUR 1.3 million behind that trajectory after the first half. Management's confidence rests on a seasonally strong Q3 and a healthier inventory position. Sintonen said, “we have made a number of steps to improve our own operational daily routines, also putting in place better inventory, inventory in better fit in better structure.” — Enel Sintonen, Chief Financial Officer · 2026-02-25 The company is also in the middle of a strategy review, with new targets to be unveiled after Q3. For now, the message is one of disciplined execution: keep inventory tight, turn it fast, and wait for demand to stabilize.

This quarter underscores that Kamux's fortunes still hinge on its ability to read powertrain shifts. The diesel correction was sharp, but the company's flexible network and focus on inventory turn suggest it can adapt. The real test will be whether the volume gains in Sweden and Germany can translate into sustained profitability once the diesel overhang clears.