SINGAPORE - Mainboard-listed Jardine Cycle & Carriage (C&C) has entered into a strategic partnership with used car marketplace Carro to jointly explore opportunities in the used car and after-sales businesses, the companies announced jointly on Friday.
Under the tie-up, which they value at more than US$60 million (S$80.2 million), Jardine C&C will take a stake in Singapore-based Carro, while Carro will acquire a stake of equal value in Jardine C&C subsidiary Republic Auto, one of the largest used car dealers in Singapore.
Jardine C&C will appoint Mr Wilfrid Foo, its managing director for direct motor interests, as its representative to Carro’s board, while Carro chief executive Aaron Tan will get a seat on the board of Republic Auto, The Business Times reported.
Jardine C&C and Carro will also form an after-sales joint venture to roll out a multi-brand after-market workshop business with an initial focus on Singapore and Malaysia.
The new business “will leverage Carro’s tech capabilities to mirror and integrate the value chain from online to offline”, while Jardine C&C will provide the relevant experience to support the joint venture and collaborate on ancillary after-market businesses.
Mr Foo said: “JC&C chose to partner Carro because we are looking beyond used car wholesaling and retailing, setting our sights on the larger ecosystem that facilitates deeper cooperation in financing, insurance and after-sales.”
The partnership will enable Jardine C&C and Carro to scale up operations and capabilities faster by leveraging the two companies’ combined areas of expertise, he added.
Carro’s Mr Tan said: “By tapping 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.”
Through the tie-up, Carro will gain immediate access to an expanded range and supply of high-quality used cars.
Jardine C&C holds the dealership rights for multiple brands, including Mercedes-Benz, Mitsubishi Motors and Kia, in Singapore.
Jardine C&C is the investment holding company of the Jardine Matheson Group.
It holds interests in other companies, such as Vietnamese conglomerate Truong Hai Auto Corporation and Indonesian conglomerate Astra, which both have automotive interests.
Founded in 2015, Carro operates across Asia, including in Malaysia, Indonesia and Thailand, and recently expanded to Japan and Taiwan.
The unicorn start-up has raised more than US$1 billion in debt and equity from Temasek, SoftBank Vision Fund and several other sovereign funds.
Jardine C&C shares closed up 14 cents, or 0.41 per cent, at $34.10 on Friday after the announcement of the partnership.
