Investment giant Jardine Cycle & Carriage (JC&C) has taken a strategic step towards redefining the auto retail market by teaming up with automotive marketplace Carro. In a deal valued over US$60 million, this collaboration shows a reciprocal interest, with Carro acquiring an equal stake in JC&C’s used car subsidiary, Republic Auto, one of Singapore’s leading used car dealers.
Managing Director of Direct Motor Interest for JC&C, Wilfred Foo, explained that the partnership with Carro focuses not just on used car wholesaling and retailing but on shaping the larger ecosystem of financing, insurance, and aftersales. He emphasized that combining their areas of expertise would amplify their operations and capabilities.
The partnership offers Carro access to a wide range of high-quality used cars, proven automotive capabilities, and established networks. Carro will also appoint a representative to the Board of Republic Auto, improving its access to the premium used car sector.
JC&C, in return, will have a representative on Carro’s board to guide the partnership, ensuring mutual benefits. They will utilize Carro’s digitally-led platform to accelerate participation in high-growth and new economy sectors.
The collaboration will enhance efficiencies and expand downstream markets by developing platform and data initiatives across the used car and aftersales value chains. Aiming to launch a multi-brand aftermarket workshop business, the partners will focus initially on Singapore and Malaysia. Leveraging Carro’s proprietary tech capabilities, they plan to strengthen consumer touchpoints by integrating the value chain from online to offline.
Carro’s CEO, Aaron Tan, expressed confidence in further boosting Carro’s market position by capitalizing on JC&C’s strong networks and profound regional understanding.
This partnership follows Carro’s regional brand film “A Car’s Journey in Reverse,” aiming to enhance the brand’s awareness and services. The campaign, led by Katherine Teo, Carro’s regional head of marketing, and creative lead Simond Chew, is part of their larger regional market expansion plans.
This news is based on Marketing Interactive.