GT CAPITAL PUTTING UP USED-CAR INSPECTION, WARRANTY VENTURE
Ty family-led conglomerate GT Capital Holdings Inc. has teamed up with Japanese financing service firm Premium Group to build a secondhand car inspection and warranty business in the country in line with the expansion of its automotive ecosystem.
In a disclosure to the Philippine Stock Exchange on Tuesday, GT Capital said it would invest in the new business through GT Capital Auto Dealership Holdings Inc. (GTCAD) for an effective ownership of 47 percent.
The new business will be established through GT Mobility Ventures Inc., a joint venture with Mitsui & Co. and GTCAD as shareholders.
Premium Group provides automotive loans, credit and debit, consumer microlending, and other financing services throughout Japan.
Early last year, GT Mobility Ventures formed JBA Philippines with auction house operator Japan Bike Auction Co.
Ltd., citing the need to expand its automotive value chain.
The plan was to operate a second car auction house on a 2.5-hectare lot in the Lancaster estate in Cavite. GT Capital had infused P100 million in fresh equity to GTCAD to fund the latter’s investment in the new business.
The auction house is seen to benefit from a captive market offered by affiliate Toyota Financial Services, which has a few hundreds of repossessed units at any given time. This venture aims to make pricing for used vehicles more transparent. Upon inspection, pricing of the vehicles is based on actual bids for the day.
GT Capital’s automotive ecosystem starts from the assembly, importation and wholesale distribution of Toyota motor vehicles. It also sells motor vehicle parts and accessories, provides financing for the acquisition of Toyota motor vehicles and operates car dealerships. Its entry into used-car trading, inspection and warranty is seen to expand this Philippine automotive value chain.