- Carsome and Carro are competing to win Malaysia’s vehicle inspection license.
- The competitive tender aims to increase market competition.
- Winning the license could provide added revenue but also political uncertainty.
Car inspection license battle
Used car marketplaces Carsome and Carro’s Malaysian unit MyTukar are lobbying to break a decades-long monopoly and win a potentially lucrative vehicle inspection license from the Malaysian government.
However, officials say the competitive tender process aims to increase market competitiveness, not simply transfer a “golden goose” concession between politically connected firms.
Breaking monopoly: Malaysia
The incumbent inspector Puspakom, owned by tycoon Syed Mokhtar Albukhary, has held the mandatory inspection license since the 1990s, which helped grow it into a major firm with 165M ringgit ($34.6M) in 2022 revenue.
However, Transport Minister Anthony Loke seeks to open the vehicle inspection market to competition and additional qualified operators.
While Carsome and Carro have existing inspection capabilities and government-linked backers, officials say other contenders may include conglomerates Sime Darby, Berjaya and Naza – presenting stiff competition.
Carsome vs. Carro
Winning the license could provide added revenue and credibility, but also political uncertainty if policies shift.
Ultimately, the aim is to improve competitiveness and service levels in a transparent tender, not just transfer monopoly profits to a new politically-blessed firm.
Good technical capabilities will be crucial, but will not guarantee victory if other scoring criteria are not met.
