How This Business Grew from Selling Used Cars to Becoming the Largest One-Stop Shop Truck Solutions Franchise

Did you know that up to 1,000 trucks or commercial vehicles are sold in the country per day? This demand can be attributed to the flourishing business landscape; as businesses expand and evolve, their need for multiple trucks to facilitate their operations also grows. The ever-increasing demand for trucks is evidence of the thriving business sector, as it strives to achieve enhanced operational efficiency and expedited logistics. 

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From used cars to fleet of trucks

Autokid was established to cater to this growing demand. The business started in 2011, when church friends who were barely out of college—Marvin Tiu Lim, Kevin McHale Yao, and Eric Lim—began buying and selling secondhand cars online through classified ads.

From left to right: Kevin McHale Yao (CEO), Marvin Tiu Lim (president), and Eric Lim (executive vice president) in 2011

Initially a backyard operation, Autokid transformed into a serious endeavor when the founders leased a large lot in G. Araneta Ave, Quezon City. 

Intently wanting to grow this business, selling personal cars seemed to limit their desired growth. Upon realizing that customers who purchased used cars were usually one-time buyers, they eventually changed gears and sought after the bigger opportunity of selling trucks to business owners who would tend to come back and buy more to build their fleets.

The budding entrepreneurs kicked things off by importing surplus trucks from Japan. While they managed to keep up with the demand for trucks, they soon hit a common snag: after-sales support and parts availability became a real headache for both customers and for them. 

In 2019, Autokid made a pivotal shift from selling surplus trucks to offering brand-new trucks that are way more price-friendly, and even a bolder move to world-class and guaranteed after-sales support in parts and maintenance. 

4 key business strategies to learn from Autokid

In just 3 years after this pivotal move, Autokid has quickly become the fastest-growing one-stop shop for all truck needs nationwide. Here are four key business strategies we can all learn from them:

1| Break old habits

The then truck industry in the Philippines was plagued with decades-old challenges on poor after-sales services and hard-to-find truck parts. Autokid made sure to break these old habits and solve these problems by providing world-class after-sales services, which include expert repairs, extensive maintenance, and quality parts, and by extending truck warranties to three years from the industry standard of just one year. 

Also part of the company’s after-sales services is their Service Care Call Center. Focusing on customer satisfaction, Autokid created a team to handle and guide customers through systemized phone calls. With just a quick phone call, clients can have their truck-related concerns catered to instantly in a guided process.

Autokid’s Service Care Team consists of skilled mechanics and a call center service

Lack of options is also a concern. Instead of being a one-brand dealer like the old players, Autokid partnered with top truck manufacturers such as Dongfeng, Weichai, Foton, Shacman, Sinotruck, FAW, Stark, Isuzu, Shantui, Hangcha, and XCMG to better serve their customers.

With over 70 different SKUs of commercial vehicles, ranging from heavy and light-duty trucks to heavy equipment and special purpose vehicles like modernized jeeps or air-conditioned delivery vans, Autokid provides a comprehensive range of options.

Recently, the company also started selling brand new cars under the dealership of GAC Motors. The joint venture introduced to the Philippine market an all-new set of cars crafted with excellence and innovative technology.

Autokid also continues to forge beneficial partnerships with key players such as Shell, UnionBank, government agencies, and more.

2| Redefine the marketing playbook

Another testament to Autokid’s disruptive strategy is how it conveys its message. Traditionally, truck advertisements are done through print media and out-of-home ads or billboards. Autokid stood out by being more digitally present through social media campaigns, celebrity endorsement, influencer marketing, and more unconventional marketing strategies. 

Isko Moreno is Autokid’s Brand Ambassador 

3| Grow with your customers

As Marvin Tiu Lim once said, “It’s more of understanding what customers need and thinking of a long-term partnership, not just making a quick buck but trying to help them promote their business. And if they like our service and our trucks, as their business grows, the more business they send our way.”

From large corporations who require fleets of trucks to MSMEs who need one or a few trucks, Autokid is there to help their businesses move forward to success.

Autokid CEO and representative, Kevin McHale Yao, receives the Mabuhay Business Award MSMEs of the Year under the Medium category

The company’s commitment to excellence is further bolstered by its ISO 9001:2015 certification, ensuring that every aspect of their offerings adheres to the highest quality standards. 

Last year, Subic Bay Metropolitan Authority (SBMA) awarded Autokid the “Mabuhay Business Award MSMEs of the Year” under the medium category. “Winning the MSMEs of the Year award is a validation of our goal to empower enterprises to achieve greater heights. It is a step closer for Autokid to being a premier brand for Truck Solutions in the country,” Lim expressed.

Moreover, the Philippines’ Growth Champions of 2024 listed Autokid as the sole automotive company for two consecutive years. The PH Growth Champions 2024 is a list of the Top 30 companies in the Philippines that have achieved the highest percentage growth in revenues between 2019 and 2022. This list reflects how Philippine businesses are utilizing the digitalization of their operations and adapting to new technologies. 

4| Dare to be different

Lastly, Autokid has once again disrupted the industry by not following the traditional dealership program but instead opted for franchising, where support is more felt and evident, which helps franchisees achieve the same degree of success and fulfillment. In fact, Autokid gives almost zero cash-out for inventory costs, which gives aspiring franchisees more flexibility when it comes to the capital requirement. 

In the words of Steve Jobs, "Innovation distinguishes between a leader and a follower”. Autokid’s journey epitomizes the essence of disruption, as they continue to redefine the landscape of the country’s truck industry.

Do you have an innovative business concept that can grow further via franchising? Take Francorp’s FREE Franchisability Test to get started. 

Sam Christopher Lim is the CEO of Francorp Philippines; Co-author of 12 Strategies for Franchising; President of U-Franchise Sales & Management; Chairman of the Philippine Franchise Association; and Chairman for ActionCOACH Philippines.