Min Lu, the CEO of leading Chinese autos mall AutoHome (NYSE: ATHM), has said that building on the company’s existing presence in used autos has been a priority so far in 2019. This comes as the company attempts to hit 4 million MAUs for its used-auto marketplace Che168.com by the close of the year.
Speaking during the company’s Q2 conference call, Min added that AutoHome feels its existing stable of 30,000 used auto dealer partners is insufficient, and that the company will be pursuing platform-building partnerships. The company has signed cooperative deals with two of China’s largest online used-auto marketplaces — Guazi and Uxin (Nasdaq: XIN) — in the past month.
AutoHome’s re-commitment to the used-auto market began one year ago with a $100 million U.S. investment in c-to-b auction platform TTP Car Inc. (AKA, Tiantian Paiche). The investment was predicated on bringing TTP’s stock into AutoHome’s verified b-to-c channel — “AutoHome Trusted Alliances.” The company also offers unverified c-to-c listings.
Chinese Insurance giant Ping An Group acquired a 53% stake in AutoHome in 2017. Since then it’s been shifting its business away from transactions and into asset-light arenas like shareable content, financing, and insurance. The company’s market cap has tripled since the start of 2017, currently standing at close to $10 billion U.S.