Autobacs Seven and Kit Loong Tayaria sign joint venture agreement
KUALA LUMPUR: Autobacs Seven (AB7) - one of Japan's largest suppliers of aftermarket automotive parts and services - including tyre-related services and car accessories has acquired a 20% stake in local tyre distribution and retail company Kit Loong Tayaria (KLT).
The strategic partnership between the two companies will allow KLT - a passenger car tyre division of Kit Loong Tyre Group and authorised distributor of Pirelli, Kumho, Corsa and Jinyu tyre brands in Malaysia, to tap into AB7's expertise in automotive parts.
This includes services and retailing, and will allow KLT to gain access to a vast range of some 30,000 different types of products as well as share best retailing practices between the companies.
"The purpose of our partnership is to develop (KLT) more and strengthen our Tayaria Alliance outlets," said KLT chief executive officer Jacob Chen.
From left: Chen with Autobacs Seven senior executive - overseas business Yugo Horii.
The current aim for KLT is to increase sales, enhance their many outlets services and further expand the reach of the business with the help of AB7 - a company that is listed on the Tokyo Stock Exchange and is one of the biggest suppliers and retailers of aftermarket automotive parts and services in Japan.
"We currently have more than 80 Tayaria Alliance outlets, and our target is to achieve 120 outlets as soon as possible. Partnering with AB7 will enable us to achieve our target faster," he added.
As for AB7, the company currently has over 500 chain outlets throughout Japan, including five here in Malaysia since 2012, and has plans to open an additional four more before the end of the second quarter of 2017.