Autobacs Seven Co. Ltd. (AB7), a Japanese public listed automotive parts giant has just signed an agreement to acquire a 20 percent stake in local tyre chain Kit Loong Tayaria Sdn. Bhd. (KLT). This partnership, according to KLT’s Chief Executive Officer, Jacob Chen will provide both parties business growth opportunities.
With more than 59 years in the aftermarket automotive parts industry, AB7 currently operates more than 500 stores in Japan with plans to expand to overseas market. On the other hand, KLT, authorised distributor of Pirelli, Kumho, Corsa and Jinyu tyres have over 80 Tayaria Alliance outlet across Malaysia and has plans to increase that number to 120. This partnership will create a synergistic effect for both parties as they work together to create business opportunities.
According to Jacob, AB7 and KLT will be working closely to provide more products suitable for the Malaysian market and share best-practices in retailing. This will not only help KLT to achieve their 120 outlet goal sooner but also foster greater competitiveness for their respective Tayaria Alliance outlets.