Premium Warranty Services Philippines, Inc. (PWSPI) starts commercial operations in the country, bringing to the Philippines Japan’s number one automotive warranty provider and aiming to be a first-mover in providing vehicle warranty for used cars in the country.
PWSPI is a joint venture between GT Mobility Ventures, Inc. (GTMV), itself a partnership between GT Capital Auto Dealership Holdings, Inc. (GTCAD) and Mitsui & Co, Japan, and Premium Group Co. Ltd. (PGC), Japan’s number one automotive warranty provider.
Forging strategic partnerships in the Philippines
GTCAD, a wholly owned subsidiary of GT Capital Holdings, Inc., was established in 2016 to manage and grow the portfolio of the GT Group in the automotive sector. Seeing the strong prospects in the country’s automotive sector, the company hopes to strengthen its presence not only in the auto manufacturing and retail sectors but also in the rapidly growing mobility sector. GTCAD continues to seek strategic partners that can bring leading and world-class expertise to the field.
Premium Group is among the latest partners of GTCAD in its growing suite of ventures. The largest automotive warranty provider in Japan, it has more than 1 million total warranty contracts and 23,500 partner dealers.
Tokyo-based Premium Group, which has 14 years of experience in the industry, builds on its success in Japan to continue expanding its market footprint both locally and overseas. Anticipating sustained growth in Asia’s automotive market, the company
expanded its presence to Thailand and Indonesia and now the Philippines.
Redefining the local secondary car market
With pre-COVID double digit expansion in the Philippine automotive market, PGC saw how Filipino car buyers are seeking new solutions to their car purchasing and ownership experience, particularly in the used car segment.
Seeking to transform the purchasing and selling experience for pre-owned cars, PWSPI will work with a wide range of car brands. Its suite of services includes an extensive 188-point inspection on any used car, coupled with a detailed report on the existing state of the inspected vehicle.
PWSPI offers an on-demand service that certifies a vehicle’s condition based on its engine, body and frame, undercarriage, interior and exterior condition, and registration details. Premium Inspection can be used to identify eligible vehicles that can be covered by PWSPI’s warranty offering. Customers may choose from a variety of options ranging from comprehensive coverage across all the vehicles’ mechanical and electrical components to limited coverage for only the vehicles’ engine and transmission. They may opt for either a one-year or a two-year coverage.
“In the Philippines, acquiring pre-owned vehicles is usually on an ‘as is, where is’ basis, leaving buyers fending for themselves. Our goal at PWSPI is to help create a more transparent secondary car market that elevates Filipino car owners’ experience when buying and selling pre-owned cars. We intend to deliver a much more value-driven experience for both buyers and sellers. We are very pleased to be working with Premium and Mitsui, both leading Japanese companies in delivering world-class service solutions,” said Vince Socco, chairman of PWSPI and GTCAD.
Growing used car market
Speaking about the growth prospects for the used car inspection warranty business, Socco said, “Based on conservative estimates, the scale of the used car market is estimated at more than half a million units annually. This volume is far larger than the market for new vehicles and represents a very significant demand for our services.”
PWSPI is partnering with a network of service shops across the country to ensure timely and convenient warranty repairs. It is also introducing a proprietary app that will provide customers with a practical platform for claims and other services.
Initially, PWSPI will work through select online auto portals, used car dealers and financial institutions. It plans to eventually handle direct customer-to-customer transactions and expand its footprint throughout the Philippines.
GTCAD plans to grow its portfolio of ventures in the used car market even further. It expects to launch other strategic initiatives soon.