Tuhu Car acquires Australian mycar chain for A$278M in first cross-border auto aftermarket deal
Tuhu Car, China's leading auto aftermarket service provider, announced the acquisition of Conti Trade Australia Pty Ltd, operator of the 'mycar Tyre & Auto' brand, for an adjusted A$278 million (HK$1.55 billion). The deal, executed through its Hong Kong subsidiary, marks the first cross-border M&A in China's auto aftermarket sector. mycar operates 279 self-owned stores in Australia and reported A$524.6 million in revenue and A$10.83 million in net profit for 2025. Tuhu stated the acquisition provides a direct foothold in the Australian market and diversifies its geographic exposure.
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Common ground
- All agree that Tuhu's acquisition of mycar is a high-risk bet, not a sure thing.
- Everyone sees that Tuhu faces major challenges integrating a physical retail network in a foreign market with different labor laws and customer expectations.
- All acknowledge that the deal is happening at a time of geopolitical tension between China and Five Eyes countries like Australia.
- There is agreement that Australian workers and consumers should be the main focus, not just stock prices or corporate strategy.
- All three recognize that Tuhu's domestic competition from JD and Tmall is a key reason for this overseas move.
Points of contention
- Neutral Agent says the deal is a desperate gamble by a struggling company, while Eastern Agent calls it a smart strategic hedge and sign of Chinese corporate maturity.
- Regional Agent argues that Continental sold mycar due to political retreat from the Five Eyes alliance, but Neutral Agent insists it was just portfolio optimization of a low-margin business.
- Eastern Agent believes Tuhu's experience surviving China's brutal market proves they can handle Australia, while Neutral Agent says that experience doesn't transfer to a different legal and cultural environment.
- Regional Agent thinks Tuhu might bring better service and lower prices for Australian drivers, but Neutral Agent doubts they can improve margins without cutting corners or losing customers.
- Eastern Agent frames the acquisition as part of a global shift where Chinese companies are becoming legitimate players in Western service sectors, while Neutral Agent sees it as an isolated, risky bet by one company.
Blind spots
- No one deeply analyzed how Australian unions and labor laws will specifically constrain Tuhu's efficiency-driven model.
- The debate ignored the possibility that Tuhu might partner with local Australian management to ease integration, rather than imposing Chinese practices.
- There was little discussion of how currency fluctuations or changes in Australian trade policy could affect the deal's financial outcome.
- The potential for Tuhu to use mycar as a platform to expand into other auto services in Australia (like repairs or parts sales) was not explored.
- No one considered what happens if Tuhu fails—whether mycar would be sold off or shut down, and the impact on employees and communities.
WorldAttention’s read
This roundtable showed that Tuhu's A$278 million purchase of mycar is a deeply uncertain bet. The Neutral Agent sees it as a financially risky turnaround project by a company with a weak balance sheet and no local experience. The Regional Agent focuses on the human side—whether Australian workers will be treated fairly and whether drivers will get better prices. The Eastern Agent views it as a sign of Chinese companies maturing into global service players, despite political headwinds. All agree the next 18 months are critical: if Tuhu can integrate mycar without bleeding cash and while keeping workers and customers happy, it could be a win. But if they fail, it will be seen as a costly mistake. The real blind spots are the specifics of Australian labor law, the role of local management, and what happens if the deal goes wrong. Ultimately, this is less about geopolitics or Chinese capability and more about whether one company can pull off a tough turnaround in a foreign market.
Reporting timeline
Tuhu Acquires Australian mycar for $278M Amid Intense Domestic Competition from JD and Tmall
Tuhu Car, China's leading auto aftermarket service provider, announced the acquisition of Conti Trade Australia Pty Ltd, operator of the 'mycar Tyre & Auto' brand, for an adjusted consideration of A$278 million (HK$1.55 billion). The deal, executed through its Hong Kong subsidiary, marks the first cross-border M&A in China's auto aftermarket sector. mycar operates 279 self-owned stores in Australia and reported A$524.6 million in revenue and A$10.83 million in net profit for 2025. Tuhu stated the acquisition provides a direct foothold in the Australian market and diversifies its geographic exposure. The move comes as Tuhu faces mounting competitive pressure from JD and Tmall, which have rapidly expanded their offline service networks to over 4,000 and 3,000 stores respectively. Tuhu's own financial performance has weakened: H1 2026 revenue grew 11.4% to RMB 8.78 billion, but operating profit plunged 51.4% to RMB 108 million, and adjusted net profit fell 41.6% to RMB 240 million, driven by rising sales and marketing expenses. The company's asset-liability ratio rose to 63.8%.
Read sourceTuhu Car acquires Australia's mycar for A$278M amid intensifying competition from JD and Tmall
Chinese auto aftermarket leader Tuhu Car has announced the acquisition of Continental AG's Australian subsidiary, which operates the 'mycar Tyre & Auto' brand, for an adjusted A$278 million (HK$1.55 billion). The deal, executed through Tuhu's Hong Kong subsidiary, marks the first cross-border acquisition by a Chinese auto service company. Mycar operates 279 self-owned stores in Australia and reported A$524.6 million in revenue and A$10.83 million in net profit for 2025. Tuhu stated the acquisition provides a strategic opportunity to establish a direct presence in the Australian market and diversify geographically. The move comes as Tuhu faces mounting competitive pressure from JD.com and Alibaba's Tmall, which have rapidly expanded their offline auto service networks to over 4,000 and 3,000 stores respectively. Tuhu's financial performance has deteriorated, with first-half 2026 operating profit falling 51.4% year-on-year to RMB 108 million and adjusted net profit declining 41.6% to RMB 240 million, driven by rising sales and marketing expenses. The company's operating cash flow dropped sharply to RMB 47.7 million from RMB 258 million a year earlier. Tuhu's total store network reached 8,825 locations by end-June, with 8,655 franchised outlets.
Read sourceTuhu Car Rises Nearly 6% on Plan to Acquire Australia's Conti Trade Australia
Tuhu Car (09690.HK) saw its stock rise nearly 6% in Hong Kong trading, closing up 4.87% at HKD 10.76 with a turnover of HKD 13.29 million. The surge followed the company's announcement that its indirect wholly-owned subsidiary, TUHU Car (Hong Kong) Limited, has entered into a share purchase agreement with Continental Global Holding Netherlands B.V., a wholly-owned subsidiary of Continental AG, to acquire all issued shares of Conti Trade Australia Pty Ltd. The target company owns and operates the 'mycar Tyre & Auto' network, one of Australia's largest tire, auto service, and repair chains with 279 stores offering comprehensive one-stop car services. The acquisition is based on an agreed enterprise value of AUD 403 million (approximately HKD 2.25 billion), with an estimated cash payment at closing of about AUD 278 million (approximately HKD 1.55 billion), subject to adjustments for net debt and working capital. Tuhu aims to establish a meaningful operational foothold outside China through the target's established national retail and service platform in Australia, advancing its international expansion strategy and strengthening its position as a leading automotive service platform.
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Tuhu-W proposes to acquire Australian auto service chain mycar for HK$1.55 billion
Tuhu-W (09690.HK) announced that on September 24, 2026, before trading hours, its indirect wholly-owned subsidiary entered into a share purchase agreement with a wholly-owned subsidiary of Continental AG, a Frankfurt-listed leading tire manufacturer. The buyer has conditionally agreed to acquire all issued shares of the target company, which owns and operates the 'mycar Tyre & Auto' network, one of Australia's largest tire, auto service, and repair chains with 279 stores nationwide offering comprehensive one-stop car services. The acquisition is based on an agreed enterprise value of A$403 million (approximately HK$2.25 billion). After adjustments for the target group's net debt and working capital, the closing payment is currently estimated at approximately A$278.33 million (about HK$1.55 billion), payable in cash at closing and subject to post-closing adjustments. The acquisition is subject to approval from relevant Australian regulatory authorities, and the transaction may not necessarily be completed.
Read sourceTuhu Car to Acquire Conti Trade Australia for A$278 Million, Expanding Overseas
Tuhu Car (09690.HK) announced on September 24, 2026, that its indirect wholly-owned subsidiary TUHU Car (Hong Kong) Limited has entered into a share purchase agreement with Continental Global Holding Netherlands B.V., a wholly-owned subsidiary of Continental AG, to acquire all issued shares of Conti Trade Australia Pty Ltd. Conti Trade Australia owns and operates the 'mycar Tyre & Auto' network, Australia's largest tire and auto service chain with 279 stores nationwide. The acquisition is based on an enterprise value of A$403 million (approximately HK$2.25 billion), with an estimated cash payment at closing of approximately A$278 million (about HK$1.55 billion), subject to adjustments for net debt and working capital. Tuhu Car, which operates an online-to-offline automotive service platform primarily in China, stated the acquisition provides a strategic opportunity to establish a scaled direct presence in the Australian automotive service market, diversify geographically, and expand its international footprint. The company believes the target's network, customer base, and experienced team complement Tuhu's capabilities in digital customer acquisition, procurement, supply chain management, technology, and large-scale automotive service operations.