SGCM: We notice that both of the companies have been around for a long time, why establish the joint venture now?
TA: Although TTAP has a long presence in the region, its history in the aftermarket sector is not that old, in fact it can better be described as a newcomer in the sector. Moreover, a trend that TTAP observes for the South East Asian region is the movement of ‘end users’ for automotive parts gradually shifting from being car owners such as you and me, to firms such as leasing companies and mobility providers such as Grab.
As such, we have come to the realisation that a new model for reaching out to potential clients, beyond simply utilising car parts dealers, is necessary to better cater to these new corporate customers.
The joint venture is thus born out of the realisation that traditional growth through distribution partners alone would be limited given the rising need for corporate suppliers. TBAP would be better equipped to supply this growth of corporate entities, as well as to fully capitalise on the growing age of automobiles in the region.