The automotive aftermarket sector has received significant policy backing from nine government ministries, including the Ministry of Commerce. A newly issued notice outlines measures to cultivate and expand this market, providing substantial long-term policy tailwinds for industry players.
TUHU-W (ASX: 09690) is positioned as a primary beneficiary of this policy shift. The document explicitly supports the development of an "online appointment + offline repair" service system and encourages branded, chain-based operations within the vehicle maintenance sector. This represents the first time such a model has been clearly endorsed in a central government policy document, directly validating and supporting Tuhu's core business approach.
Policy Details and Strategic Alignment
The notice emphasizes strengthening maintenance service capabilities. It calls for improving the credit management system for vehicle maintenance and supports auto dealers and service providers in establishing integrated online-offline service frameworks. The policy encourages repair businesses to pursue intensive, specialized, and branded chain operations.
TUHU-W has been refining its standardized "online appointment + offline repair" service model for 15 years, building a comprehensive nationwide service network and ecosystem that aligns perfectly with the new policy direction.
Seizing the New Energy Vehicle Opportunity
The policy also guides new energy vehicle and power battery manufacturers to open their repair technology authorizations and encourages repair over replacement to enhance the socialized maintenance capacity for NEVs. With NEV penetration accelerating, TUHU-W has proactively positioned itself in this growth segment.
Over 8,000 of its service centers are equipped to handle general NEV maintenance, with more than 120 locations upgraded to specialize in NEV powertrain, battery, and electronic systems repair. This positions the company to capture a significant share of the expanding NEV after-service market.
Operational Strength and Market Validation
The company's operational expertise and NEV service capabilities were recently validated by its strong performance during the recent 618 shopping festival. The promotional period saw total sales surpass 2 billion yuan, with new customer numbers growing by 40%.
TUHU-W led the market in core categories like tires, engine oil, and batteries. Daily tire sales peaked at nearly 200,000 units, total engine oil sales approached 10 million liters, and nearly 2 million users completed transactions. Battery sales grew over 100% year-on-year in nearly 70 cities.
On social commerce platforms, the company ranked first in transaction value within the auto maintenance sector on Douyin, with transacting users surging 153%. On the Meituan channel, transacting users and sales skyrocketed by 900% and 350%, respectively.
New Energy as a Growth Engine
NEV-related services emerged as a core growth driver during the event. The number of NEV users increased by 80%, while sales in NEV-related categories and the number of users completing NEV repair transactions rose by over 60% and 121%, respectively.
Leveraging its extensive offline network, TUHU-W has established a full-cycle NEV maintenance system covering tires, consumables, chassis parts, and specialized powertrain repairs, enabling it to capture a growing share of the NEV maintenance market.
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