Inter Cars is a leader of Polish automotive aftermarket, as distributor delivering spare parts to independent aftermarket garages. This segment, according to Automotive Spare Parts Distributors Association is a half of the whole market of automotive spare parts in Poland.

Despite consolidation processes, also with Inter Cars, who took over JC Auto in 2008, Polish automotive aftermarket is still fragmented. The share of Inter Cars in passenger cars market is estimated to be about 20 per cent, and other big players of the market are: AD Polska, Group Auto Union Polska.

Whereas the biggest distributors in CV and Truck market are: Opoltrans, Suder & Suder, Autos and Inter Cars, which market share is now 10 per cent. More important for results of Inter Cars is its dominating position in passenger cars market, as it is over 80 per cent as regards value share.

The basic purpose of the Company is to build dominant in Poland distribution network of spare parts for cars, with strong representation on new European markets, bringing stable profits and enabling expanding operations by taking over other entities operating in the industry of distribution and logistics. The Company intends to achieve share in the Polish market of around 25-30%.

The significance of foreign daughters is growing
Besides its operations in Poland, Inter Cars is developing its foreign distribution companies in Central and Eastern Europe – Czech Republic, Slovakia, Ukraine, Hungary, Croatia, Romania, Lithuania, Latvia and Bulgaria. Last year the Company also started building a sales structure in Italy (the biggest saturation of the market with cars in Europe), and further geographical expansion is planned. According to announcements of the Board, the Company should start its operations in Slovenia in 2013.

As regards turnover in the first 3 quarters of 2013, the biggest markets besides Poland were Romania and Lithuania. Sales revenues of foreign daughters in the first half a year amounted to 36% of total sales revenue of the Group, in comparison to 33% in the same period of 2012.

SWOT analysis

Advantages:
  • Leading position on Polish market and in Central and Eastern Europe.
  • Diversification of markets.
  • Participation in ATR purchase group (access to cheaper purchases).
  • Wide and available product range.
  • Stable managerial staff.
 Disadvantages:
  • The influence of economic situation on demand for automotive spare parts, and at the same on financial results of the Company.
  • Seasonal changes of the demand.
  • The risk of exchange losses.
Opportunities:
  • Increase of number of cars in Poland in the next few years.
  • Big market potential of the region.
  • Favourable law changes (guarantee of access to cross references of parts).
 Threats:
  • Unfavourable exchange rate changes.
  • Risk related to large foreign entities, specializing in wholesale of car parts, entering the domestic market.
  • Possible law changes which will limit import of used cars.



source: Parkiet
Warsaw
30-10-2013
DZ. / No 253

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