These guys may not be that well-known right now, but Motech Automotive is a home-grown automotive service center that’s about to become a household name. That’s because they’ve recently signed a deal with Autobacs Seven Co. Ltd. from Japan to open 500 stores in the ASEAN region, 100 of which will be in the Philippines.
Through the partnership, both companies are hoping to build a global brand by combining their core competencies.
Motech has been around since 1977, offering quality parts and services for out-of-warranty vehicles. What they bring to the table is their local training center for mechanics, technical know-how, and experience when it comes to growing out the brand through franchising. Motech only had 6 corporate-owned stores when they started. Now, they’ve sold 37 franchise agreements in the country. This puts them on track in reaching their goal of opening 100 stores in the country by 2020.
Autobacs, on the other and, is more than just an automotive parts and accessories retail store as we know it. The company name is a witty acronym for Appeal, Unique, Tire, Oil, Battery, Accessory, Car audio, Service, which clearly defines them as one-stop-shop automotive service center. They operate 611 outlets in Japan, including 30 stores overseas. But what they’re really known for, and what this tie-up is putting its money on, is Autobacs’ service technology, knowledge, and high quality standards.
According to the plan, they’ll put up Motech service centers in emerging markets such as the Philippines. Meanwhile, Autobacs shops will open in more established economic areas. What’s unclear though is whether we’ll ever see an Autobacs shop pop up somewhere in the country. Nevertheless, we’re happy to know that a home-grown business is going global.
If you see this as a potential business opportunity, Motech is openly accepting franchise applications. Their estimates say that each local outlet requires a reasonable investment of P7-million, which covers the facility and equipment cost.