Carro expands into Japan through SoftBank JV

Southeast Asia’s used car marketplace giant Carro is expanding into the Japanese market through a joint venture with SoftBank Corporation, according to an announcement.

The JV will be named Carro Japan Co Ltd and will introduce a full suite of services, such as subscription-based services and car leasing.

Through this strategic partnership, Carro’s technology will digitally match traditional car leasing with corporate users in Japan. The partnership will also involve multiple leasing companies, with plans to expand the marketplace for individual users.

In recent years, Japan has seen an increase in demand for used cars and subscription-based services, resulting from the backdrop of rising prices of new vehicles and a growing need for car ownership.

However, the difficulty of accurately assessing a used car’s valuation due to the inconsistent and lack of credible evaluation criteria has led to several barriers to entry within the used car marketplace in the country.

Carro said its Japan venture will support existing car dealers with leasing services and provide a highly competitive subscription-based service.

In addition, Carro’s AI technology will be incorporated to accurately predict the valuation of used cars based on their history and data. Meanwhile, SoftBank’s key role in CARRO JAPAN will be to tailor services for the Japanese market, including marketing, sales, and collaboration with partner companies.

With Carro’s entry into Japan, corporate clients can apply for the subscription-based service by stating their requirements for a used car via CARRO JAPAN’s website, including vehicle size, mileage, non-smoking or smoking options, and more. A list of suitable used cars available for hire will be automatically generated for consideration.

“Japan is one of the leading automotive markets and most digitally-savvy countries in Asia. Our entry into Japan is the next natural step in growing our regional presence and helping traditional dealers expand their market reach across the country using our AI-technology-backed capabilities,” said Carro CEO and co-founder Aaron Tan.