Singapore-based online automotive marketplace Carro has entered Australia through the acquisition of used-car platform CarPlace, according to Reuters.
The deal expands Carro's footprint to eight markets across Asia-Pacific. It also gives the company a presence in Western Australia, Queensland and Victoria, three of Australia's four largest automotive markets. Financial terms were not disclosed.
CarPlace is operated by Autoleague, one of Australia's largest automotive groups. Autoleague will remain a strategic shareholder in CarPlace and has also become a strategic investor in Carro.
Growth opportunity
The acquisition supports Carro's regional growth plans and strengthens its position in the Australian used-car market.
As reuters reported, Australia records annual sales of around 2.3 million used vehicles. Demand for electric vehicles is also growing
"We've found an ideal strategic partner in Autoleague to power our ambitions in Australia and we're really excited about the potential to grow into a leading business in Australia," said Aaron Tan, Co-Founder and CEO, Carro.
He further added, "Australia is one of the largest used car markets in Asia Pacific, with a consistent annual sales volume of 2.3 million used cars and fast-growing EV penetration. We believe the market is ripe for a platform like Carro to transform the used car landscape and deliver a better, convenient, more transparent customer experience that is powered by technology and AI."
Technology rollout
Carro plans to introduce its technology and operational systems across the Australian business.
The company said this will enhance vehicle inspections, inventory tracking, asset management, lead generation, dealer networks and customer experience.
Founded in 2015, Carro has raised more than S$700 million from investors, including SoftBank Vision Fund and sovereign wealth funds. It employs more than 4,500 people.
Wholesale push
Carro also plans to expand its wholesale operations in Australia.
The company aims to leverage its presence in Japan to support vehicle imports into Australia and strengthen the Japan-Australia import corridor.
"Building and maintaining a strong dealer network has always been key for all the markets we're in," said Tan. "Carro has a track record of partnering with local dealers to support their growth, and we welcome 'win-win' partnerships in Australia.
“We're confident in our strong wholesales capabilities, thanks to our presence in Japan which puts us in a very strong position to bring in popular Pre-Owned and Brand New Japanese models that Australians have grown to trust and love,” he continued.
Strategic partnership
Autoleague said the partnership will help accelerate Carro's ambitions in Australia.
"It's really a fantastic opportunity to partner and be a strategic shareholder in Carro," said Dan Kawai, Managing Director and CEO of Autoleague.
"We've seen Carro's technology infrastructure, streamlined operations and unwavering commitment to transparency within the industry, and we're confident in their goal to become a leading player in Australia and the top choice for customers. We're supportive of Carro's ambitions in Australia and are committed to working closely together to achieve that,” he concluded.
Carro now operates in Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, Hong Kong and Australia.