Friday, January 22, 2016

Japanese aftermarket car parts, accessories shop Autobacs to enter Philippine market

Autobacs, one of Japan's biggest car parts and accessories shops with over 600 outlets globally, is entering the Philippine market through a capital and business alliance with Motech, a local automotive maintenance and repair service chain that currently operates 43 stores locally.

Under the alliance, Autobacs will acquire 9.93% of Magnificent7 Automotive and Franchising Company, which Motech operates under, for P7.5 million. According to Autobacs, as a result of the improving Philippine economy and the growing number of cars on the road, its entry into the Philippine market was spurred by the "large potential in the retail and wholesale of automotive related goods and automotive repair services."  

Besides supplying its products to the Motech chain of stores, Autobacs is expected to share its business knowledge and the skills needed to develop multiple stores with Magnificent7. In return, Magnificent7 is expected to expand its Motech stores to 500 by 2025. Of the planned 500 stores, 123 will be established in the Philippines by 2020 while 377 stores will be put up across the ASEAN region.

The alliance will also see Motech mechanics being trained in Japan by Autobacs for one to two years before the chain pushes through with its expansion in the region.

"This alliance allows us to have the synergy of Japanese branding and high quality service and parts, fused with our localized and personalized business model," said Magnificent7 president and chief executive officer Eugene Sergio Naguiat. "This will be further developed to cater not only to the Philippines but also to other ASEAN countries. With our personalized services and Autobacs technological expertise, we will create a revolutionary change in the industry, especially in the quick service automotive segment."

Photo from PGE Solutions' Twitter page

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