16 June 2023
This game-changing alliance between a regional automotive player and a leading tech used car platform aims to reshape the used car and aftersales segments, combining analog and digital ecosystems for unprecedented growth and innovation.
In a major industry development, Jardine Cycle & Carriage (JC&C) and Carro have announced a groundbreaking strategic partnership aimed at redefining the used car and aftersales segments of automotive retailing. This unprecedented collaboration brings together the strengths of a renowned regional automotive player, JC&C, and a leading technology-driven used car platform, Carro. With a combined value exceeding USD60 million, this partnership signifies a remarkable step forward in the evolution of the analog and digital ecosystems within the used car and aftersales space.
The visionary alliance between JC&C and Carro lays the foundation for mutual growth by leveraging their existing used car and aftersales businesses. By combining their ecosystems and complementary expertise, both entities are set to achieve remarkable success and drive innovation across the entire value chain. This strategic move will significantly enhance upstream efficiencies while expanding downstream markets through platform and data initiatives.
Under the terms of this partnership, JC&C will appoint a representative to Carro’s board, leveraging its extensive operational experience to guide the collaboration towards mutually beneficial outcomes. Simultaneously, Carro’s digitally-led platform will serve as a technology enabler, accelerating participation in high-growth, new economy segments. The integration of JC&C’s comprehensive infrastructure and deep market knowledge will uniquely position Carro, setting it apart from its competitors. Furthermore, Carro will gain immediate access to an expanded range and supply of high-quality used cars, along with proven automotive capabilities and established networks.
In a reciprocal move, Carro will appoint a representative to the board of Republic Auto, JC&C’s subsidiary and one of the largest used car dealers in Singapore. This strategic alignment will allow Carro to capitalize on Republic Auto’s commanding market share and robust cash generating ability, ensuring better access to premium used car stock. As a co-owner of Republic Auto, Carro is well-positioned to drive digital transformation, optimize operational efficiency, and co-create an enhanced customer experience.
In addition to their partnership in used car retailing, JC&C and Carro will establish an aftersales joint venture, initially focusing on Singapore and Malaysia. This ambitious venture aims to roll out a multi-brand aftermarket workshop business that seamlessly integrates the online and offline value chains, enhancing customer touchpoints. Leveraging Carro’s proprietary tech capabilities and JC&C’s seasoned operational expertise, the joint venture will extend its collaboration to ancillary businesses within the aftermarket space.
Expressing his thoughts on the partnership, Mr. Wilfrid Foo, JC&C’s Managing Director for Direct Motor Interests, stated, “JC&C chose to partner with Carro because we look beyond used car wholesaling and retailing, setting our sights on the larger ecosystem that facilitates deeper cooperation in financing, insurance, and aftersales. The partnership will enable us to scale up our operations and capabilities faster by leveraging our combined areas of expertise.”
Echoing the sentiment, Mr. Aaron Tan, Carro’s Chief Executive Officer, emphasized the immense value of tapping into JC&C’s networks and regional understanding. He stated, “By tapping on JC&C’s strong networks and deep understanding of the region, we are confident we will continue to stay ahead of the competition and further boost Carro’s market position. I have always admired JC&C as a company, and this strategic investment allows us deeper access to learn from, and grow with, the best in our industry.”
The strategic partnership between JC&C and Carro marks an inflection point in the automotive retailing landscape. With their shared vision, expertise, and combined resources, the two industry leaders are poised to redefine the future of the used car and aftersales sectors, creating unprecedented opportunities for growth and innovation.
