Tuhu Car Services has officially listed on the Hong Kong Stock Exchange, raising over HKD 1 billion, marking a significant milestone as the first independently listed automotive after-sales service company in Hong Kong.

Target Information

Tuhu Car Services, founded in 2011, is a leading integrated online and offline automotive service platform in China. The company has developed a robust digital and on-demand service experience that caters to diverse needs of car owners, establishing a vibrant ecosystem involving car owners, suppliers, automotive service stores, and other participants. By June 30, 2023, Tuhu operated a network of 161 self-owned stores, 4,968 franchise locations, and 20,013 partner stores, effectively covering a majority of the prefectural cities in China. The company boasts over 100 million registered users, with an increase in average monthly active users from 5.5 million in 2019 to 10.2 million in the first quarter of 2023.

Industry Overview in China

The automotive service market in China has been on a continuous growth trajectory, driven by the country maintaining the highest car ownership rate globally. As of 2022, the Chinese automotive service market reached a scale of approximately ¥1.2 trillion, with projections indicating a compound annual growth rate of 9% from 2023 to 2027, potentially culminating in a market size of ¥1.9 trillion by 2027. This market expansion is reshaping the industry's landscape, with increasing consumer demand for standardized, transparent, and efficient solutions for after-sales services.

Moreover, the rise in ownership of electric vehicles (EVs) is contributing to a rapidly growing market for EV after-sales services. This presents significant opportunities for companies that are proactive in adapting their busin