The first company which took the plunge and went to the Prague Stock Exchange (besides Budapest as well) to raise some capital, is the used car dealer AAA Auto. This fast growing company presently operates in five Central European markets - the Czech Republic, where AAA Auto’s founder A. J. Denny started doing business, neighbouring Slovakia and Poland as well as Hungary and Romania. The company intends to enter other markets in the southern and in the eastern part from the Czech Republic; it could be Russia next year, followed by Serbia, Ukraine, Bulgaria or Turkey. In those areas, AAA Auto has been trying or will try to repeat its success in the Czech Republic and Slovakia where the company accomplished considerable market shares on the competitive markets of used car dealers. AAA Auto particularly concentrates on used car dealing, which is on a small volume extent supplemented by new cars (the volume may potentially increase). Commissions from financial services, which the company mediates during the car purchase, represent then a smaller amount of sales revenues, nonetheless a considerable part of the profit. Additionally, the company provides repair services as well car maintenance or spare parts sales. The AAA Auto is for the moment in its strong growth stage, having started its expansion beyond the Czech border in the previous three years. Entering the Slovakian market was the first step; the company built a strong position there within a few years. Slovakia was followed by Romania, Poland and Hungary, where the company is presently trying to repeat the Slovakian (and Czech) model. The year 2007 has been the year of the most rapid development for AAA Auto so far, at least as far as the amount of newly opened outlets is concerned. At present, there are 38 of them, as opposed to 25 last year. By the end of 2008, their number should further increase onto 57. The “rising” story is behind the company going to the Stock Exchange for some capital.
Considering the successful break into the Slovakian market, where the company has achieved no less than a 16% market share since the opening its first car centres in 2005, the firm can be trusted to handle its expansion. Furthermore, it operates on markets positively disposed towards used cars; Central Europe is a very interesting region for used car dealers. The market is positively influenced by fast economic development of most of the countries in the region, which results in the ever-increasing need to travel or own a car. Nevertheless, the economic standard of the countries does not yet allow new cars to take a similar share as in Western Europe (and will not allow for a long time to come). Much larger space is therefore opened for newer and good-condition (more expensive) used cars. The AAA Auto Company is the key player in the mentioned Central European market, which increases its attractiveness even more.
