MANILA, Philippines — GT Capital Holdings Inc., the diversified conglomerate controlled by the family of the late tycoon George Ty, is venturing into the lucrative used vehicles market and is setting up what could possibly be the biggest auction house for second hand cars in the Philippines.
In a briefing last week, GT Capital president Carmelo Maria Luza Bautista said the move would create strong synergy for the holding company whose automotive arm Toyota Philippines Inc. is already the top auto seller in the country and whose banking group Metropolitan Banking & Trust Corp. is already the biggest automotive financing lender in the country.
“We’re dominant in brand new, retail and financing, coupled with insurance so what’s the most logical extension? We are looking at opportunities in the used car market. Being the largest lender, we also have a biggest portfolio of repossessed assets,” Bautista said.
Toward this end, GT Mobility Ventures Inc. (GTMV), a joint venture between GT Capital’s wholly-owned automotive dealership company GT Capital Auto Dealership Holdings Inc. (GTCAD) and Mitsui & Co. Ltd. (Mitsui) formed JBA Philippines with auction house operator Japan Bike Auction Co. Ltd. (JBA).
“JBA Philippines is a strategic partnership between GTMV and JBA, a subsidiary of USS Co. Ltd. Sixty percent of JBA Philippines will be controlled by GTMV while forty percent will be owned by JBA,” GT Capital said in its disclosure.
Through JBA Philippines, GT Capital extends the value chain for its customers and complements the conglomerate’s Toyota and AXA businesses, Bautista said.
He said the move also expands the group’s customer base.
“It sets the benchmark for used vehicle pricing. The pricing now becomes transparent,” he said.
In all, Bautista said GT Capital ventured into the business as another opportunity for growth.
“The vision is to establish the auction platform and become an active participant in the used car market,” Bautista said.
GT Capital is into businesses such as banking, automotive assembly, importation, dealership, and financing, property development, life and non-life insurance, and infrastructure.
Aside from Metrobank, other businesses are Toyota Motor Philippines Corp., Toyota Manila Bay Corp., Toyota Financial Services Philippines Corp., Sumisho Motor Finance Corp. , GT Capital Auto Dealership Holdings, Inc., Property Company of Friends, Inc., and Philippine AXA Life Insurance Corp.