Jardine Cycle & Carriage and Carro enter into strategic partnership to shape the future of automotive retailing

• Combining the capabilities of an established regional automotive player and leading used car tech platform to win in the used car and aftersales space

• In a deal worth over USD60 million, JC&C will take an interest in Carro, and Carro will acquire an interest of equivalent value in JC&C’s used car business, Republic Auto

SINGAPORE, 16 JUNE 2023 – Jardine Cycle & Carriage (“JC&C”) (SGX: C07) and Carro announced today a strategic partnership that aims to redefine the used car and aftersales segments of automotive retailing. This unique partnership teams up the capabilities of an established regional automotive player and a leading tech used car platform – JC&C and Carro – and will combine the best elements of the analogue and digital ecosystems of the used car and aftersales space. Valued at over USD60 million, this partnership will see JC&C taking an interest in Carro. Carro will also acquire an interest of equivalent value in JC&C’s used car subsidiary, Republic Auto, one of the largest used car dealers in Singapore.

The two businesses are committed to shaping their future growth pathways together through investing in each other’s existing used car and aftersales businesses. The partnership’s combined ecosystems and complementary expertise will ensure success, and enable JC&C and Carro 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.

Under the partnership, JC&C will appoint a representative to the board of Carro. JC&C’s strong operator track record will lend expertise and guide the partnership to deliver mutual benefits. At the same time, Carro’s digitally-led platform provides a bolt-on technology enabler to the operations and will accelerate participation in high-growth, new economy segments.

JC&C’s full-suite infrastructure and deep market knowledge will uniquely position Carro and distinguish it from its peers. Carro will also gain immediate access to an expanded range and supply of high-quality used cars, proven automotive capabilities and established networks. Carro will also appoint a representative to the Board of Republic Auto. With a commanding market share and strong cash generating ability, Republic Auto will be accretive to Carro and enable Carro better access to stock in the premium used car segment. As a co-owner of Republic Auto, Carro is well-placed to transform and enhance Republic Auto’s digital offerings to drive greater optimisation and operational efficiency, and co-create an improved customer experience.

JC&C and Carro will also be forming an aftersales joint venture to rollout a multi-brand aftermarket workshop business with an initial focus on Singapore and Malaysia. 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. JC&C, as a seasoned operator with the infrastructure and expertise, has the relevant experience to support the joint venture and collaborate on ancillary businesses in the aftermarket space.

JC&C’s Managing Director for Direct Motor Interests, Mr Wilfrid Foo said, “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.”

Carro’s Chief Executive Officer, Mr Aaron Tan said, “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.”