GT Capital Holdings Inc. on Tuesday said its automotive unit is venturing into the used car inspection and warranty business with a Japanese firm.
In its disclosure to the Philippine Stock Exchange, GT Capital Auto Dealership Holdings Inc. said it is partnering with Premium Group of Japan for the new business.
The company said it is establishing GT Mobility Ventures Inc., a joint venture with Mitsui and Co. and GTCAD as shareholders.
“GT Capital’s effective ownership stake will be 47 percent,” the company said.
GT Capital’s income slid by 25 percent in the first quarter to P2.54 billion, from last year’s P3.42 billion, due to the weak performance of its core businesses of banking and automotive.
Core income fell at a slower pace of 15 percent to P2.8 billion, from last year’s P3.3 billion.
GT Capital’s consolidated revenues reached P39.01 billion, down 13 percent from P44.92 billion last year.
Healthy booked real-estate sales from Federal Land Inc., as well as higher contributions from net income of associate Sumisho Motor Finance Corp., supported GT Capital’s performance in the first quarter, the company said.
Toyota Philippines consolidated revenues for January-to-March period reached P28.8 billion, some 15 percent slower than last year’s P33.8 billion, as sales dropped.
Toyota’s retail vehicle sales during the period reached 25,686 units, down from 33,546 units last year.
By the last two weeks of March, however, most of its dealers nationwide were closed, in compliance with the government’ s implementation of the enhanced community quarantine (ECQ).
Toyota has remained the country’s number one automotive brand with a 36.3-percent overall market share in the first quarter.
“As we saw in Toyota’s first quarter results, 2020 was off to a respectable start. The prospects for the rest of 2020, however, face very significant headwinds brought about by the Taal eruption and, of course, the Covid-19 pandemic,” GTCAD Chairman Vince S. Socco said.
“We are confident, though, that when the ECQ is lifted, transportation and mobility will be among the essential drivers of economic recovery. Given the resilience of the Philippine economy and the robust capabilities of Toyota Philippines we believe that we can emerge from this crisis on solid footing.”