In a strategic move to capitalize on Hong Kong’s burgeoning electric vehicle (EV) adoption, Singapore-based online used-car marketplace Carro has expanded its footprint into the city with the acquisition of a local peer, Beyond Cars. This latest development underscores Carro’s commitment to tapping into emerging market trends while bolstering its presence across Asia.
The acquisition of Beyond Cars, announced last week, marks a significant milestone for Carro as it solidifies its position in the region’s automotive landscape. With operations spanning seven markets in Asia, including Singapore, Malaysia, Indonesia, Thailand, Japan, Taiwan, and now Hong Kong, Carro is poised to leverage the city’s rapid EV adoption to enhance its offerings and scale its operations.
Aaron Tan, cofounder and CEO of Carro, highlighted the strategic importance of Hong Kong’s EV market in driving the company’s growth trajectory. “The high penetration of electric vehicles in Hong Kong will enable us to further enhance our pricing algorithms and provide end-to-end solutions tailored to electric vehicles,” said Tan. Hong Kong’s government incentives aimed at promoting green vehicles have contributed to a significant surge in EV adoption, with electric cars accounting for a substantial portion of newly registered private vehicles.
Tan expressed confidence in Carro’s ability to capitalize on the synergies between its automotive technology expertise and Beyond Cars’ extensive network and trusted reputation in Hong Kong. “With Carro’s strong expertise in automotive technology and Beyond Cars’ wide network and trusted reputation in Hong Kong, I have no doubt that we can scale operations and take the brand to new heights,” he added.
Established in 2015, Carro has emerged as a leading player in the online used-car marketplace, offering individuals and dealers a comprehensive platform for buying and selling second-hand vehicles. Beyond facilitating transactions, Carro also provides a range of ancillary services, including auto after-sale support, insurance, and financing, catering to the evolving needs of customers transitioning to electric vehicles.
With a track record of profitability, Carro reported a positive EBITDA of $4 million in the financial year ended March 2023, solidifying its position as the most profitable online used-car platform in Southeast Asia. Backed by significant investments totaling over S$700 million since its inception, including a milestone funding round led by SoftBank Vision Fund 2 in June 2021, Carro has positioned itself as a formidable contender in the competitive automotive technology landscape.
As Carro continues to expand its reach and enhance its digital offerings, its partnership with Jardine Cycle & Carriage (JC&C) underscores its commitment to driving innovation and delivering value to customers. With access to an expanded supply of high-quality used cars and a focus on digital transformation, Carro is poised to navigate the dynamic automotive market landscape with confidence and agility.
In a rapidly evolving automotive industry, Carro’s strategic entry into Hong Kong signals its commitment to staying at the forefront of innovation while unlocking new opportunities for growth in the thriving EV market. With a clear vision and a robust foundation, Carro is poised to redefine the future of automotive retailing in Asia and beyond.
