Jardine Matheson has a long-term ambition to expand and strengthen its automotive businesses, building upon its extensive footprint in China and Southeast Asia. Its automotive interests are one of the largest contributors to the Group’s overall business. In a fast-changing industry, the Group benefits from a unified strategic vision, helping it synergise diverse experiences and expertise, optimise investment allocation and create economies of scale for continued expansion.
In early October 2021, the Group strengthened its strategic partnership with Zhongsheng Group, a leading automobile distribution group whose shares are listed on the Hong Kong Stock Exchange, by completing the transfer of its Zung Fu Motors business on the Chinese mainland to Zhongsheng. As part of the transaction, the Group has increased its shareholding in Zhongsheng to 20.94%. The Group has retained its ownership of the Zung Fu Motors business in Hong Kong and Macau.
In Southeast Asia, automotive groups Cycle & Carriage and Tunas Ridean report their business performance as part of the financial results of Jardine Cycle & Carriage (‘JC&C’).
The Group has a long-standing strategic partnership with Zhongsheng Group, a leading automotive distribution group on the Chinese mainland. The Group’s automotive businesses also comprise Zung Fu Motors Group in Hong Kong and Macau (managed by Jardine Pacific); Cycle & Carriage in Singapore, Malaysia and Myanmar, as well as Tunas Ridean in Indonesia (managed by JC&C).
The Group’s regional strategy is focused on growing its automotive businesses in China. In Hong Kong and Macau, Zung Fu ensures optimal coverage with its extensive sales and service network. The Group is also a strategic shareholder in the Zhongsheng Group, one of Chinese mainland’s leading motor dealership groups. Zhongsheng acquired the Group’s Zung Fu business on the Chinese mainland in October 2021.
In Hong Kong and Macau, Zung Fu is the exclusive retailer of Mercedes-Benz automobiles, with two full-service 4S Autohaus and two satellite workshops in Hong Kong, as well as one showroom and one workshop in Macau. Today, Mercedes-Benz’s share of the automotive market in Hong Kong is one of the highest for Mercedes-Benz worldwide. The group also represents Smart and Hyundai passenger cars, as well as Foton commercial vehicles in Hong Kong.
The business performance of Zung Fu Hong Kong and Macau is reported as part of the financial results of the Jardine Motors segment.
The Group has a strategic shareholding in the Zhongsheng Group, one of the Chinese mainland’s leading motor dealership groups. The Group’s shareholding increased to 20.94% following the completion of the transfer of the Zung Fu China business to Zhongsheng in early October 2021. The contribution from the Group’s interest in Zhongsheng is reported as part of the financial results under the Jardine Motors segment.
Through long-term interests in market-leading companies, Jardine Matheson has established a strong presence in five major automotive markets in Southeast Asia.
In Singapore, Malaysia and Myanmar, the Cycle & Carriage brand represents a growing portfolio of businesses in the sales and servicing of passenger and commercial vehicles.
In Vietnam, the Group has an interest in Truong Hai Group Corporation (‘THACO’), a leading automotive brand with a nationwide network of manufacturing plants, branches and showrooms.
In Indonesia, the Tunas Ridean Group is a growing automotive dealership and distributor headquartered in Jakarta.
Jardine Matheson’s automotive interests also include the automotive business of Astra in Indonesia, in which the Group has a majority stake. Astra is Southeast Asia’s largest independent automotive group.
Astra is a diversified business group operating in Indonesia with seven core businesses: Automotive; Financial Services; Heavy Equipment, Mining, Construction & Energy; Agribusiness; Infrastructure and Logistics; Information Technology; and Property.
As of February 2022, Astra employed nearly 190,000 employees in 240 companies, joint ventures and associate entities. It is one of the largest companies in Indonesia by market capitalisation. It is listed on the Indonesia Stock Exchange.
Jardine Cycle & Carriage has 50.1% interest in Astra.
Astra is one of the largest independent automotive groups in Southeast Asia. It participates in the production, distribution, retail and aftersales service of motor vehicles as well as manufacturing and distribution of automotive components.
It manufactures, assembles, distributes and owns dealership networks for Toyota, Daihatsu, Isuzu, Peugeot, UD Trucks and Honda motorcycles. It also manufactures and retails BMW and owns the Lexus cars dealership.
Tunas Ridean is listed on the Indonesia Stock Exchange and is a leading automotive dealer group in Indonesia. With 91 motorcycle and 70 passenger car facilities across Indonesia, Tunas Ridean represents Toyota, Daihatsu, BMW and Isuzu passenger cars, as well as Honda motorcycles. In addition, Tunas Ridean provides automotive rental and fleet management services, and offers vehicle financing through its associate, Mandiri Tunas Finance.
Tunas Ridean is an associate of Jardine Cycle & Carriage.
The largest automotive company in Vietnam, THACO Vietnam manufactures, assembles, distributes, retails and provides aftersales service in respect of commercial and passenger vehicles, representing BMW, MINI, Kia, Mazda, Peugeot, Foton and FUSO.