Carchs Holdings Co.,Ltd.
7602・Standard Market・Wholesale Trade
Automobile Distribution Business
The Group's largest segment, centered on used car purchasing, sales, and export
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥19,716 million | ¥19,865 million | ↓ |
| Segment Profit/Loss | -¥116 million | -¥228 million | ↑ |
Business Details
Comprises four companies: Carchs Co., Ltd. (domestic purchase and direct sales), Agusta Co., Ltd. (overseas export), Takatoku Co., Ltd. (auto parts), and Shinko Jidosha Co., Ltd. (maintenance). Domestically, the Group promotes a purchase-and-direct-sales model under a "customer-first" philosophy, aiming to improve gross margins through ancillary services such as warranty, vehicle inspection, and insurance. Overseas, exports to Asia, Oceania, and Africa are expanding, with the Group also advancing expansion into surrounding countries by leveraging its Uganda office and Pakistan call center.
Recent Overview
Structural reforms bore fruit, narrowing segment loss by ¥112 million year on year
For FY2026 (ending March 2026), sales in the Automobile Distribution Business were ¥19,716 million (down 0.8% year on year), a slight decrease, while the segment loss narrowed to ¥116 million from ¥228 million in the prior year, a reduction of ¥112 million. The main driver was improved gross margin at Carchs Co., Ltd. through renewal of inventory vehicle composition and improved inventory turnover. Agusta Co., Ltd., Takatoku Co., Ltd., and Shinko Jidosha Co., Ltd. all secured operating profit. Consolidated operating profit for the fourth quarter (January–March 2026) turned significantly positive at ¥68 million, demonstrating solid progress toward profitability.
Key Products
Growth Drivers
- Expansion of export transactions to Asia, Oceania, and Africa by Agusta Co., Ltd. (sales to Africa for the fiscal year under review increased substantially year on year)
- Improved gross margin at Carchs Co., Ltd. through renewal of inventory vehicle composition and improved inventory turnover (segment loss narrowed by ¥112 million year on year)
- Increased ancillary revenue through expanded services for Carchs Club members and strengthened ancillary services (warranty, vehicle inspection, insurance, etc.)
- Reduced procurement costs and improved gross margin through promotion of the "purchase and direct sales" model
- Incorporation of maintenance functions through the M&A of Shinko Jidosha Co., Ltd. and improvement of the Group's earnings capacity
Risks
- Decline in per-vehicle sales gross margin due to rising procurement prices amid soaring auction market prices, etc. (particularly pronounced at Carchs Co., Ltd.)
- Risk of declining vehicle sales gross margin associated with the disposal of long-held inventory vehicles
- Increased new store opening costs and delays in store opening plans due to soaring real estate prices and construction costs
- Structural risk of domestic market contraction due to younger generations' declining interest in car ownership, declining birthrate, etc.
- Downside risk to the automobile industry as a whole due to the impact of U.S. trade policy (new vehicle registrations down 2.2% year on year)
Last updated: June 25, 2026