Jardine C&C and Carro enter strategic partnership for used cars and aftersales

MAINBOARD-LISTED Jardine Cycle & Carriage : C07 0% (C&C) and used-car tech platform Carro announced a strategic partnership worth “over US$60 million” on Friday (Jun 16).

Under the partnership, Carro will acquire a stake in Jardine’s used-car subsidiary, Republic Auto, while Jardine C&C will acquire a stake of equal value in Carro.

The tie-up aims to play on the respective strengths of each entity, with Jardine C&C as an established automotive player with extensive infrastructure and expertise, and Carro as a technology-driven company with multi-platform experience. It is the first of its kind for used cars and aftersales between an established automotive group and a technology platform in the region. 

Jardine will appoint Wilfrid Foo, its managing director for direct motor interests, as its representative to Carro’s board. Aaron Tan, the chief executive of Carro, will represent his company on the board of Republic Auto.

In a joint statement, the companies said the deal is worth “over US$60 million”, but did not provide a specific figure.

They added that the partnership will “combine the best elements of the analogue and digital ecosystems of the used-car and aftersales space”, and help strengthen business operations for the two companies in Singapore and Malaysia.

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Foo said the partnership will help Jardine C&C’s plans to go beyond car wholesale and retail, and into a “larger ecosystem” that includes financing, insurance and aftersales. Tan said that Carro will benefit from Jardine’s “strong networks and deep understanding of the region” to help stay ahead of its competitors.

Responding to queries from The Business Times, a Jardine C&C representative said the company anticipates “enhanced offerings” from the partnership, such as a wider variety of used cars and an improved “online-to-offline customer experience”, in the coming months.

Carro will gain access to a wider range of used cars through Republic Auto, especially in the premium or luxury segments. Jardine C&C holds the dealership rights for multiple brands, including Mercedes-Benz in both Singapore and Malaysia.

The trade-in of used cars when purchasing new ones is a key source of used vehicles, which are in demand in Singapore due to high Certificate of Entitlement (COE) prices.

A new joint venture will also be established as part of the partnership, to create a “multi-brand after-market workshop business” in Singapore and Malaysia. This will operate as a third-party workshop business, and will likely also support consumers who purchase used cars from Jardine C&C or Carro.

Jardine C&C is the investment holding company of the Jardine Matheson Group in South-east Asia. It owns multiple automotive dealerships in the region through its direct motor interests group. It also owns a 50.1 per cent stake in Astra, an Indonesian group with significant automotive interests.

Carro was established in 2015. It said it is now South-east Asia’s largest online used-car marketplace, using algorithms and artificial intelligence-enabled tech as part of its platform. Sime Darby invested S$5 million in the home-grown startup in 2021. 

Jardine C&C closed Friday up 0.41 per cent or S$0.14 at S$34.10.