KU Holdings

Basic Information

Stock Code
9856
Industry
Retail
Category Detail
Automobile Retailers
Prefecture
Tokyo
Establishment Year
October 1972
Listing Year
December 1989
Official Website
http://www.ku-hd.com/
TSE Information
TSE Information
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Overview

KU Holdings is a holding company and a major used car sales company founded in 1972 with its base in Machida, Tokyo, that also engages in imported car dealership business.

Current Situation

KU Holdings boasts consolidated sales of approximately 100 billion yen, centering its used car sales and imported car dealership business around Machida, Tokyo, and across the Greater Tokyo Area. Imported car dealership divisions such as BMW and Mercedes-Benz support its performance, with diverse sales channels and a broad customer base. Under the holding company structure, subsidiaries handle specialized businesses to strengthen the organization. In recent years, it has focused on dealer efficiency and brand strategies to expand its market share in the increasingly competitive used car market. It is also enhancing sustainability awareness, promoting environmentally considerate store operations and service provision. In 2023, it transferred its Harley-Davidson business to concentrate resources on core businesses. Moving forward, it plans to achieve sustainable growth by strengthening sales in the Greater Tokyo Area and developing new demand in the imported car sector.

Trivia

Interesting Facts

  • Built regional recognition since the 1970s through used car radio commercials
  • Opened 'AMG Tokyo Setagaya,' the world's first exclusive Mercedes-Benz AMG sales base
  • Successfully expanded business by acquiring BMW official dealer rights in the Greater Tokyo Area
  • Transferred Harley-Davidson business to Repio Group in 2023
  • Mid-tier top position following major players in the Greater Tokyo Area used car market
  • Contributes to industry distribution efficiency through used car auction operations
  • Advanced approach emphasizing environmental consideration in dealer store designs
  • Founder Keihachi Inoue is an executive actively contributing to regional society
  • Diverse handled models from kei cars to imported luxury cars
  • Approx. 20% of employees are specialized maintenance or service technicians
  • Active in handling recycled parts to promote environmental consideration
  • Emphasizes communication with regional society through locally rooted events
  • In 2016, Stern Setagaya was absorbed and merged into Stern Yokosuka
  • Early entry into used motorcycle sales and advancing specialization
  • Operating multiple imported car official dealerships is a differentiating factor in the industry

Hidden Connections

  • Maintained used car distribution network even after dissolving capital alliance with Car Seven operations
  • Yamasan supports stable shareholder base as a major shareholder
  • Strengthened parts supply and service collaboration through long-term contracts with major imported car manufacturers
  • Active personnel exchanges and technology sharing within the Greater Tokyo Area automotive sales industry
  • Strengthened collaboration with regional communities to support local events and traffic safety promotion
  • Holds influence on used car market price formation through in-house auction operations
  • Rare structure of same group operating official dealers for multiple imported brands
  • Promotion of eco-maintenance through partnerships with environmentally conscious maintenance shops

Future Outlook

Growth Drivers

  • Stable used car demand in the Greater Tokyo Area and surrounding regions
  • Expansion of imported car market and continued popularity of luxury cars
  • Expansion of IT and online sales channels
  • Market changes in new and used cars due to environmental regulation responses
  • Flexible response capabilities to diversifying customer needs
  • Differentiation of maintenance and servicing services
  • Trust expansion through strengthened used car quality assurance system
  • Effects of digital marketing targeted at younger generations
  • Management efficiency improvement under holding company structure
  • Differentiation through introduction of environmentally considerate stores

Strategic Goals

  • Enter top 5 used car sales share in the Greater Tokyo Area
  • Improve imported car dealership business profit margin by 20%
  • Achieve over 30% ratio of online used car sales
  • Complete energy-saving conversion of all stores to reduce environmental impact
  • Maintain and improve customer satisfaction above 90%
  • Establish business operations considerate of sustainability
  • Promote diversity respect and active roles for employees across the group
  • Improve business efficiency by 30% through new technology introductions
  • Strengthen profitability of logistics and auction businesses
  • Enhance brand value through strengthened collaboration with regional society

Business Segments

Used Car Auction Operations

Overview
Provides used car auction operations and related services, contributing to smoother industry distribution.
Competitiveness
Powerful dealer network centered in the Greater Tokyo Area
Customers
  • Used Car Dealerships
  • Automobile Dealers
  • Repair Shops
Products
  • Used Car Auction Listing Service
  • Winning Bid Agency Service
  • Inventory Management Support Software

After-Sales Service for Imported Car Dealers

Overview
Provides maintenance and parts services to support imported car dealers, achieving high-quality customer experiences.
Competitiveness
Close collaboration with each imported car manufacturer and certified maintenance technology
Customers
  • BMW Official Dealers
  • Mercedes-Benz Official Dealers
  • Volkswagen Official Dealers
Products
  • Vehicle Maintenance Service
  • Genuine Parts Supply
  • Warranty Program

Automotive Parts Wholesale

Overview
Wholesales used and genuine automotive parts for supply nationwide.
Competitiveness
Extensive procurement routes and stable supply capacity
Customers
  • Automotive Retail Stores
  • Maintenance Shops
  • Used Parts Dealers
Products
  • Used Parts
  • Genuine Parts
  • Custom Parts

Vehicle Logistics Services

Overview
Handles safe and efficient vehicle transportation and storage, contributing to logistics optimization.
Competitiveness
Dedicated logistics bases and optimal route construction capabilities
Customers
  • Imported Car Dealers
  • Used Car Sales Network
  • Repair Shops
Products
  • Vehicle Transportation Service
  • Storage and Management Service

Maintenance Shop Consulting

Overview
Consulting services to support efficiency and quality improvement for maintenance businesses.
Competitiveness
Precise proposals based on extensive industry experience and track record
Customers
  • Used Car Dealerships
  • Dealer Maintenance Departments
  • New Maintenance Businesses
Products
  • Maintenance Know-How Provision
  • Equipment Introduction Support
  • Human Resource Development Program

Competitive Advantage

Strengths

  • Strong used car sales base in the Greater Tokyo Area
  • Operates multi-brand imported car dealership business
  • Business segmentation and efficiency advanced under holding company structure
  • Abundant used car inventory and distribution network
  • Deploys multifaceted vehicle maintenance services
  • Strong ties with imported car manufacturers
  • Long market experience and brand recognition
  • Procurement power leveraging economies of scale
  • In-house auction and logistics systems
  • Strong reach to local customers
  • Comprehensive customer service
  • Utilization of certified used car brand
  • Locally rooted store deployment
  • Stable capital structure
  • Risk diversification through diverse product lineup

Competitive Advantages

  • High customer trust from core business closely tied to the Greater Tokyo Area
  • Operational strength in multiple imported car brand official dealerships
  • Unique distribution through used car auction operations
  • Comprehensive strength enhancement via multifaceted services
  • Promotion of group business efficiency under holding company
  • Establishment of advanced maintenance technology and genuine parts supply system
  • Flexibility in sales strategies tailored to regional characteristics
  • Competitive edge from specialized dealer deployment per brand
  • Utilization of both online and store sales channels
  • Improved customer satisfaction through enriched after-sales service
  • Management stability and growth investment leveraging capital strength
  • Strength in providing total car life services
  • Excellent store locations and high recognition
  • Cost advantages from efficient inventory circulation
  • Close relationship building with local communities

Threats

  • Price pressures from intensifying used car market competition
  • Exchange rate fluctuation risks in imported car market
  • Burden of responding to strengthening environmental regulations in automotive industry
  • Changes in used car demand accompanying new car electrification
  • Sales impacts from COVID-19 and other external environments
  • Decline in existing store competition due to rise of online sales
  • Impacts on maintenance services from parts supply delays
  • Aggressive share capture by competitors
  • Progression of car detachment trend among younger generations
  • Business environment changes from legal and tax system revisions
  • Customer trust risks related to used car quality assurance
  • Rising logistics cost pressures

Innovations

2023: Harley-Davidson Business Transfer

Overview
In 2023, transferred the Harley-Davidson business to Repio Group to implement business selection and concentration.
Impact
Achieved optimization of earnings structure and concentration of management resources on core businesses

2022: Head Office Relocation to New Building

Overview
Relocated the head office in Tokyo's Machida to a new building in 2022, promoting business efficiency.
Impact
Contributes to creating a better working environment and improving business processes

2021: Advanced Imported Car Dealer Services

Overview
Implemented introduction of latest IT systems and strengthened customer services at each imported car dealer.
Impact
Achieved improved customer satisfaction and sales efficiency

2020: IT Platform Renewal for Used Car Auctions

Overview
Enhanced convenience through expansion of online bidding and platform stabilization.
Impact
Contributed to increased transaction volume and expanded industry share

2024: Promotion of Environmentally Considerate Store Facilities

Overview
Deploying energy-efficient equipment and environmental load reduction measures at multiple stores.
Impact
Realizes CO2 emission reductions and improved evaluation from local communities

2023: Expansion of Online Used Car Sales Services

Overview
Strengthened services enabling vehicle search, negotiation, and contracts online.
Impact
Contributes to increased acquisition of younger customers

2022: After-Sales Service System Integration

Overview
Integrated inspection reservations and maintenance history management across the group.
Impact
Succeeded in standardizing service quality and improving efficiency

2021: Expansion of Used Motorcycle Handling

Overview
Increased specialty stores and expanded handling volume and service menu for motorcycles.
Impact
Contributed to market share expansion

2024: Strengthened Digital Marketing

Overview
Launched initiatives to boost recognition through expanded SNS utilization and online advertising.
Impact
Succeeded in improving new customer acquisition rate

2023: Enhanced Used Car Quality Assurance

Overview
Extended warranty periods and reviewed quality inspection standards to improve reliability.
Impact
Improved customer satisfaction and repurchase rate

Sustainability

  • Store energy-saving renovations aimed at reducing environmental impact
  • Promotion and reduction activities for waste recycling
  • Regular participation in local cleanup and greening activities
  • Implementation of environmental education programs for employees
  • Promotion of reusing environmentally considerate used parts
  • CO2 reduction through promotion of energy-efficient vehicle introductions
  • Formulation of sustainable procurement policies
  • Promotion of regional coexistence through social contribution activities
  • Building internal environment for promoting women's active roles and diversity respect
  • Compliance with laws and strengthened compliance