USS Business

Three unique businesses

Net sales by business FY ended March 31, 2024

Auto auction business

Auto auction sites support trouble-free circulation of used vehicles. USS currently supports bidding from outside the premises through dedicated terminal and internet auctions around 19 auction sites throughout Japan.

SWOT analysis

Strengths	● The largest number of members and vehicles in Japan's auto auction industry ● Highly advanced vehicle inspection technologies	● High prices of vehicles sold at auctions due to the sale of quality automobiles ● The industry leader using the digital transformation	● Strict techonologies for fair and equitable transactions
Weaknesses	● Slowdown in the volume of used vehicles due to delays in the supply of new vehicles ● An insufficient number of vehicles procured by Group companies for auction ● A labor shortage including automotive management and inspectors
Opportunities	● Growth in demand to replace gas and other conventional vehicles with electric vehicles ● Broader demographic of people buying used vehicles by making a new auto loan commonplace ● Increase in the needs for Japanese vehicles overseas
Threats	● Changing perception of the value of cars due to the shift from ownership to services (mobility as a service (MaaS)) ● Capturing of the used car market by automakers using connected technologies

Used vehicle purchasing and selling business

The Rabbit Car Network is launching chains and franchises in all areas of Japan as stores specializing in the purchase of used vehicles from end users. This is the backbone to lively auto auctions. Although most of the vehicles that are bought are sold at auction, some are sold through retail channels.

SWOT analysis

Strengths	● A business model closely linked to USS auctions ● A widely recognized brand in the used car purchasing market
Weaknesses	● Delays in online systems and other digital transformation efforts ● Human resource recruitment, development and retention
Opportunities	● Strong demand in other countries for used vehicles made in Japan ● New ways to use preowned vehicle inventories for services generating a steady income, such as leases and subscriptions
Threats	● Reduction in new car ownership as drivers shift away from ownership to car sharing, leasing and rentals. ● The result is a longer cycle for the replacement of automobiles.

Recycling business

The Recycling Segment centers upon two Group companies. ARBIZ recycles end-of-life automobiles as well as small electronics and other spent products. SMART specializes in the dismantling and recycling of plants and other related equipment.

SWOT analysis

Strengths	ARBIZ	● An exclusive recycling technology (patented) ● The largest recycling yard in the Nagoya area and an ideal location for recycling operations ● Equipment and technologies capable of handling many types of waste materials
	SMART	● Collaboration with the Sumitomo Mitsui Group for cost cutting, more sources of information and reuse channels, and better proposals for recycling and reuse
Weaknesses	ARBIZ	● Insufficient network to circulate resources internationally
	SMART	● Inadequate number of certified employees to foster business growth
Opportunities	ARBIZ	● Restructuring of recycling industry to incite a green logistics ● Configuration of resource recycling system	ARBIZ/SMART	● Reexamining the recycling business to contribute to achieving carbon neutrality
	SMART	● Aging of structures during Japan's many years of rapid economic growth ● Growth of investments in the manufacturing and energy sectors
Threats	ARBIZ	●　Difficult to differentiate services in a highly competitive market ●　Fiercer competition for resources from manufacturers and companies entering the market from other industries
	SMART	●　Emergence of other companies with similar business models

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Strengths in the auto auction business

Business model

Large share

*Major six companies: TAA (11.7%), MIRIVE (5.8%), CAA (5.1%), Arai AA (5.0%), JU Gifu (3.1%), and KCAA (2.8%) Source: USEDCAR Co., Ltd.