To increase auto financing, MUFG’s JACCS acquires 49 percent stake in Carsome Capital

The largest integrated car e-commerce platform in Southeast Asia (SEA), Carsome Group, and JACCS Co., Ltd., a consumer credit service company based in Japan and part of the Mitsubishi UFJ Financial Group (MUFG), have announced a strategic partnership through Carsome Capital Sdn. Bhd., Carsome’s financing division.

According to a statement released by Carsome last Thursday, JACCS will invest in Carsome Capital and hold a 49 percent stake as part of this strategic partnership. The majority 51 percent stake will remain held by Carsome Group.

With a focus on underserved markets, the collaboration will bring customized financing solutions to Malaysia by fusing CARSOME Capital’s ecosystem and local knowledge with JACCS’ extensive experience and global resources.

In order to improve credit governance, optimize risk assessments, and apply best practices that improve portfolio performance and financial sustainability, the partnership will also make it easier to share knowledge.

“Carsome is honored to partner with JACCS, a global consumer finance company, as they mark their strategic entry into Malaysia through our partnership,

“By combining JACCS’s extensive expertise with Carsome’s ecosystem, we aim to redefine the mobility financing experience, empowering communities and driving economic growth across the region,” said Eric Cheng, Carsome Group’s Co-Founder and Chief Executive Officer.

According to Ryo Murakami, President and Representative Director of JACCS, the company has thoroughly assessed the financing and automotive markets in Southeast Asia and is enthusiastic about the prospects for long-term growth in this area.

“We believe Carsome is an ideal partner for us with the potential to drive growth and transformation in the region, starting with Malaysia, and then to other Southeast Asian markets,

“Our investment in Carsome Capital underscores our confidence in this partnership and our commitment to creating long-term value in the automotive financing industry,” he added.

According to Nicholas Wong, Managing Director of Carsome Capital Malaysia, this partnership enables the company to keep catering to underserved and unserved markets in Malaysia, which has always been a key component of its operations.

“We are excited to work with JACCS to introduce additional capabilities and technologies, such as AI-driven credit assessments, to expand access to financing to dealers who purchase wholesale inventory from us to sustain their business, as well as end-customers who put their trust in our vehicles,” he added.

JACCS is a consumer finance company that was established in 1954 in Hakodate, Japan. It provides services in Japan and abroad, including credit cards, auto loans, and home loans.

JACCS, a MUFG member, has made a significant impact in ASEAN growth markets, such as Indonesia, the Philippines, Vietnam, and Cambodia, as well as Japan.

As of March 31, 2024, the company’s shareholders’ equity was ¥230.4 billion ($1.47 billion), and it had partnerships with more than 20 automakers.