Japan Country Report 2012

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Discovery Reports

VT Holdings is driving growth in car dealerships

Discovery Reports

PUBLISHED : Thursday, 25 October, 2012, 9:49am
UPDATED : Thursday, 23 May, 2013, 4:35pm

Knowing how to set a good price and understanding customers' needs can significantly raise a dealership's profitability, says VT Holdings CEO Kazuho Takahashi. The holding company of multiple car dealerships has developed a business structure that sets the benchmark to deliver high profitability and stable earnings, despite the volatility in the vehicle industry.

VT Holdings stands out through its inclusive approach to running its dealerships. In addition to streamlining procurement processes and increasing new vehicle sales, it provides maintenance and repair services to become a one-stop shop for the likes of Nissan and Honda.

The company has extensive retail knowledge and understanding of consumer motivations. In turn it informs manufacturers and helps shape buying habits through education.

VT Holdings' business model has propelled the company to increase sales and profitability 20 times since its listing on the Osaka and Nagoya stock exchanges, enabling it to remain at the top of its game over the past 14 years.

While strengthening domestic dealerships is VT Holdings' main priority, the company also plans to expand its business outside Japan including the mainland and Southeast Asia.

"We are thinking of branching out internationally and are also focusing on new vehicle dealerships domestically," Takahashi says. He explains that making domestic dealerships profitable takes only two months, while it takes at least six months for international dealerships.

VT Holdings is also considering possible mergers and acquisitions to double its sales and profitability in the next three to five years. With limited lots in Japan to set up new display centres, the only way for dealerships to expand is by acquiring existing ones.

The company will focus on further improving efficiencies to continue delivering returns moving forward. "We are number one at increasing profitability for manufacturers. No other company can do what we do in the automobile industry."

VT Holdings