This article first appeared on the New Straits Times.
KUALA LUMPUR: Carro, Southeast Asia’s largest automotive marketplace, has invested US$30 million into Malaysia-based car bidding platform myTukar to digitise the local used car dealer industry.
Through this strategic investment, Carro’s technology will power myTukar to digitally enable the traditional used car dealerships across Malaysia, boost inter-city car sales and help local businesses grow.
“Malaysia is one of the leading automotive markets and most digitally-savvy countries in Southeast Asia, so this was the next logical step for us after expanding in Indonesia and Thailand.
“Through myTukar we plan on working with thousands of dealers across Malaysia to catalyse the growth of the used car market. Over the next few years, we plan to triple their existing transaction volume to over US$500 million,” said Carro founder Aaron Tan in a statement.
While Carro seeks to help the traditional dealers expand their market reach across the country, the move is also aimed at helping the dealers reach out to a larger pool of private sellers to grow their revenues.
Founded in 2015, Carro was initially established in Singapore, the company has since expanded to Indonesia and Thailand to create the region’s largest marketplace for automobiles.
Carro seeks to transform car sales for both private sellers and dealers.
Across the three markets, Carro has facilitated over US$500 million worth of transactions in 2018.
Carro’s entry into Malaysia via myTukar signifies the latest step in the company’s regional expansion whereby it is focusing on helping traditional car dealerships connect with private sellers via e-commerce channels.
“Malaysia’s used car marketplace has been underperforming over the last decade, chiefly due to used car dealerships facing stagnating sales during this period. To grow their revenues, traditional dealerships here must embrace digital technology to reach a wider customer base.
“”Malaysia’s used car dealerships are a pillar of its automotive sector, and therefore we believe our platform can help them bridge the digital divide to reach today’s tech-savvy car buyers and sellers. Carro’s investment will be highly crucial for our vision,” myTukar founder and chief executive officer Fong Hon Sum said in the same statement.
Launched in 2018, myTukar is a Malaysian online car bidding platform that seeks to transform the traditional pre-owned car ownership process in the country.
Through its e-commerce channel, myTukar allows private sellers to schedule a vehicle inspection with a sales service agent.
“With Carro’s technological support and regional experience, we believe that we can work together to enhance the digital experience of Malaysian car dealerships across the country,” Fong said.