Carro switches gears in Indonesia as focus shifts to new cars

Carro made a name for itself as a used-car marketplace, but the SoftBank-backed firm has steadily branched out its offerings into new cars as it works toward getting to profit.

Amid rising popularity of electric vehicles in Indonesia, the company partnered with Chinese brands such as Jaecoo and Chery at the start of the year to sell new cars in the country, Tech in Asia understands.

Digital collage by Ulla, photos courtesy of Carro

This follows Carro’s existing efforts to sell new cars in other markets. In February, the firm became an authorized dealer for Dongfeng Motor Corporation in Singapore and Malaysia, enabling it to sell new cars through a partnership with the Chinese company’s sole distributor, Volt Auto.

Carro is also an authorized dealer of Zeekr, the electric car brand of Geely, in Singapore.

Aaron Tan, Carro’s co-founder and CEO, confirms that in Indonesia, the company’s focus has shifted toward online new-car retailing as it transitions to an inventory-light model. The goal, he adds, is to “get to profitability across all segments and markets.”

“We are in fact tripling down on Indonesia where our competitors have shuttered or left the country,” he says. India-based Cars24, for instance, shut down its operations in Indonesia in 2023 to prioritize other core markets like India, Australia, and the United Arab Emirates.

Tan notes that demand for electric vehicles in Indonesia has been increasing as a recent rise in gasoline prices has made regular cars more expensive to drive. Restrictions on certain roads that limit when cars with odd- or even-numbered license plate can pass also don’t apply to electric vehicles, making them more appealing.

Carro co-founder and CEO Aaron Tan / Photo credit: Carro

Aside from selling cars, Carro also offers vehicle financing, insurance, as well as maintenance and repairs. In Indonesia, it runs B2B rental service MPM Rent and automotive auction platform Auksi. The firm also operates in Malaysia, Thailand, Taiwan, Japan, and Hong Kong, and it entered Australia via its acquisition of CarPlace in June.

The shift comes ahead of the company’s long-awaited IPO. In early August, Reuters reported that Carro was preparing for a US listing as early as 2026 that could raise up to US$500 million.

A tougher market for used cars

Carro’s Indonesia strategy is diverging from the used-car marketplace model that helped establish the company across Southeast Asia.

Tan says that in the country, Carro’s current focus is on delivering a “platform-style new-car buying experience” instead of used cars, while also selling vehicles wholesale to used-car dealers.

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