GT Capital Holdings, Inc. said in a statement on Monday that its subsidiary, GT Capital Auto Dealership Holdings, Inc. (GTCAD), inked a joint venture to launch a Japanese automotive warranty provider in the country.
Premium Warranty Services Philippines, Inc. (PWSPI) will be catering to the said growing market in the Philippines, where users of pre-owned cars are left “fending for themselves.”
“Our goal at PWSPI is to help create a more transparent secondary car market that elevates Filipino car owners’ experience when buying and selling pre-owned cars,” said Vince S. Socco, who is the chairman of both PWSPI and GTCAD.
PWSPI is a joint venture between Premium Group Co. Ltd. (PGC) and GT Mobility Ventures, Inc., which is also a partnership between GTCAD and Mitsui & Co., Japan.
Tokyo-based PGC is said to be one of the biggest automotive warranty providers in Japan, holding over a million warranty contracts and 23,500 dealers. The company said it saw an opportunity for growth in the Philippines’ automotive market as more consumers consider secondhand cars.
Mr. Socco is optimistic about the growth of the business as the scale of the secondhand car market in the country “is estimated at more than half a million units annually.”
“This volume is far larger than the market for new vehicles and represents a very significant demand for our services,” he said.
PWSPI will be working with a range of car brands to elevate the experience of buyers, offering a “188-point inspection” on cars as well as a detailed report of the inspection. It will be using “Premium Inspection” to identify eligible vehicles for its warranty services.
“We intend to deliver a much more value-driven experience for both buyers and sellers. We are very pleased to be working with Premium and Mitsui, both leading Japanese companies in delivering world-class service solutions,” Mr. Socco said.
PWSPI will offer services such as checking the state of a vehicle’s engine, body and frame, undercarriage, interior and exterior conditions, and even details on its registration.
It will be collaborating with a network of local service shops and services may be availed of via a proprietary app.
“Initially, PWSPI will work through select online auto portals, used car dealers and financial institutions. It plans to eventually handle direct customer-to-customer transactions and expand its footprint throughout the Philippines,” the company said.
On Monday, shares of parent GT Capital at the stock exchange went up by 1.16% or six pesos to close at P525 apiece. — Keren Concepcion G. Valmonte