Continental sells Australian tyre and service chain mycar to China's Tuhu for A$403 million
Continental is selling mycar Tyre & Auto, one of Australia's largest tyre, service and repair chains, to Chinese automotive service platform Tuhu in a deal based on an enterprise value of A$403 million.
- A$403 million (approx. €250 million)
- around 280
- more than 1,600
- 8,825
What Happened
Continental has announced the sale of its subsidiary mycar Tyre & Auto, one of the largest tyre, automotive service and repair chains in Australia, to Tuhu, a leading Chinese automotive service platform that operates the world's largest automotive service network by store number under management and serves the largest user base among automotive service platforms in China. All of the more than 1,600 employees and around 280 stores of mycar Tyre & Auto are part of the transaction, which is subject to regulatory approvals. Continental says the deal marks another step in its strategic focus on its core business of developing and manufacturing tyres. Under Tuhu's ownership, Continental says mycar will have an owner with a strong focus on automotive services, giving the business a solid platform to continue its growth and realise its potential.
A$403 millionAustralian dollars
Approximately 250 million euros; the transaction is subject to regulatory approvals.
Continental acquires mycar Tyre & Auto to expand its distribution network in Australia and strengthen its global presence in the tyre market.
Tuhu's service network comprises 8,825 Tuhu Workshops, and it had approximately 31 million transacting users in the twelve months ending that date.
Continental announces the sale of mycar Tyre & Auto to Tuhu, subject to regulatory approvals.
- Scheduled maintenance
- Tyres
- Brakes
- Suspension
- Batteries
- General mechanical repairs
“mycar Tyre & Auto has developed very successfully under the Continental umbrella and is now exceptionally well positioned in the Australian market. In Tuhu, mycar Tyre & Auto is gaining an owner with many years of experience who will actively drive the company's strategic direction and sustainable long-term development. Tuhu and Continental have a long-standing and strong strategic partnership in China. With our own sales organisation in Australia and the continued distribution of our tyres through the mycar Tyre & Auto network, we will ensure seamless continuity for our customers.”
“Australia is a highly attractive and promising market for automotive services, and mycar Tyre & Auto is a distinctive business with a strong position in this market. We look forward to working closely with the existing management team and employees, while continuing our long-standing partnership with Continental. As a new entrant to the Australian market from China, we are committed to adapting quickly to the local market and building on mycar's strong foundation established under Continental's management and its proven track record of responsible and reliable operations. By bringing Tuhu's capabilities and experience to Australia, we look forward to continuing to deliver value, choice and convenience for Australian vehicle owners.”
Continental acquired mycar Tyre & Auto in 2018 to expand its distribution network in Australia and strengthen its global tyre-market presence, and since then Australia has developed into an established and important market for the company. Continental has also built its own strong and highly capable sales organisation in Australia over recent years. Under Continental's ownership, mycar steadily strengthened its market position over the past eight years through an expanded store network, a broader product portfolio and an enhanced market presence. Following completion of the transaction, mycar Tyre & Auto will remain a distribution partner of Continental in Australia and will continue to sell Continental tyres there, and the partnership between Continental and Tuhu creates opportunities for closer cooperation in the future.
Why this matters
The transaction hands one of Australia's largest tyre and repair networks — around 280 stores and more than 1,600 employees — to a Chinese platform that is a new entrant to the Australian market, while Continental keeps its tyres on mycar shelves as a distribution partner. It also marks another step in Continental's stated focus on its core business of developing and manufacturing tyres.
Terms in This Story
- enterprise value
- A measure of what a whole company is worth in a takeover, covering its operating business and typically its debt, rather than just the price of its shares.
- regulatory approvals
- Sign-offs from government or competition authorities that a deal must receive before it can legally close.
- distribution partner
- A company that sells or supplies another company's products through its own stores or network.
Summarised from the linked release; details can be imperfect — always verify against the original source.