Jardine Cycle & Carriage (Jardine C&C) C07 has entered into a strategic partnership with used car marketplace Carro to jointly explore opportunities in the used car and aftersales segment of automotive retailing.
The partnership will enable the two parties to collaborate on a wide range of platform and data initiatives across the used car and aftersales value chains that will materially improve upstream efficiencies and enlarge downstream markets.
Valued at over US$60 million, the partnership will see Jardine C&C taking an interest in Carro. The latter will also acquire an interest of equivalent value in Jardine C&C’s used car subsidiary Republic Auto — one of the largest used car dealers in Singapore.
Jardine C&C will appoint a representative to the board of Carro to lend their track record expertise. Carro will also appoint a representative to the board of Republic Auto to drive greater optimisation and operational efficiency.
With a commanding market share and strong cash generating ability, Republic Auto will be accretive to Carro and enable it better access to stock in the premium used car segment.
Both Jardine C&C and Carro will be forming an aftersales joint venture to rollout a multi-brand aftermarket workshop business with an initial focus on Singapore and Malaysia.
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The business will leverage Carro’s proprietary tech capabilities to seamlessly mirror and integrate the value chain from online to offline to enhance customer touchpoints. Jardine C&C will provide the relevant experience to support the joint venture and collaborate on ancillary businesses in the aftermarket space.
“The partnership will enable us to scale up our operations and capabilities faster by leveraging our combined areas of expertise,” says Jardine C&C managing director for direct motor interests Wilfrid Foo.
As at 11.24am, shares in Jardine C&C are trading 16 cents higher or 0.47% up at $34.12.
