Carsome, Japan Bike Auction collaborate to expand used car sales in Indonesia
JAKARTA, NNA – Two automotive marketplaces for used cars in Indonesia are banding together to carve out a bigger piece of the market pie.
On Tuesday, PT Carsome Indonesia, a subsidiary of a Malaysia-based company operating car-trading platforms, and PT JBA Indonesia, a subsidiary of Japan Bike Auction Co., signed a memorandum of understanding on cross-distribution cooperation to sell used vehicles in Indonesia.
JBA Indonesia runs JBA Bidwin Auction, which has auction locations in many Indonesian cities. It also offers online bidding like Carsome, which operates car-trading platforms in Southeast Asia.
Carsome CEO and Founder Eric Cheng said the collaboration would expose both Carsome Indonesia and JBA users to more potential buyers to boost their chances in selling and getting a good price.
Since coming to Indonesia in 2016, Carsome has gained more than 1,600 partner dealers in sprawling cities like Greater Jakarta, Bandung, and Surabaya. Meanwhile, JBA, which has the participation of 4,800 dealers in key cities, runs 18 JBA auction branches throughout the Southeast Asian country.
Under their agreement, Carsome users who fail to sell their car on the Indonesian platform can entrust their cars to be auctioned by JBA. And vice versa, JBA users who are unable to win an auction at JBA can use a used car sales service on the Carsome platform.
Carsome Indonesia and JBA are optimistic that the cooperation to expand their business would enhance each other's strengths and boost the used car market in Indonesia.
JBA Indonesia CEO Kazuhiro Shioyama believes the partnership would mutually support and strengthen each other's business. Moreover, the second hand car market in Indonesia is flourishing very well, he added.
Since 2015, auctions of used cars at JBA Indonesia grew by more than 100 percent, with an average of 100,000 vehicles sold each year, including motorcycles. It expects to sell 40,000 used cars this year, Shioyama said.
Cheng told NNA that about four million used cars were sold at four Southeast Asian locations where Carsome has a presence. Carsome itself has hosted the transactions of more than 40,000 cars each year, which amounted to more than $300 million.
"Carsome Indonesia currently has a market share of less than one percent. By partnering with JBA, we are pretty sure that our market share for Carsome Indonesia used car sales next year can increase by one percent or even increase by two to three percent in the following years," Cheng told NNA.
Meanwhile, Carsome Indonesia and JBA are still finalizing their profit-sharing plan.