Core Viewpoint - The automotive aftermarket in China is rapidly expanding, with the market expected to reach 7.5 trillion yuan by the end of 2024, reflecting a compound annual growth rate of 10.79% over the past five years [1] Industry Overview - The total number of motor vehicles in China is projected to exceed 353 million by the end of 2024, creating a vast aftermarket opportunity [1] - Despite significant market growth, traditional aftermarket sectors face challenges such as excessive diagnostics and redundant maintenance projects, indicating a need for improved service standards and quality [1] Company Insights - Tuhu Car, a representative of vertical platforms, is leveraging technology and supply chain integration to reshape the automotive service ecosystem [1] - Tuhu's founder, Chen Min, introduced transparency in pricing and service quality, revolutionizing the way automotive parts are sold online [2][3] - Tuhu has established a comprehensive logistics network with 39 regional warehouses and 267 front-end warehouses, ensuring timely delivery of genuine parts [3][6] Supply Chain Innovation - Tuhu has adopted a direct procurement model with major tire manufacturers, eliminating middlemen and allowing for competitive pricing of genuine products [6][7] - The company reported a 10.4% growth in tire and chassis components, with sales of Michelin and Bridgestone tires increasing by 60% and 50% respectively [6] - Tuhu's commitment to sourcing directly from manufacturers has transformed consumer perceptions of genuine products, making them more accessible and affordable [7][8] Market Transformation - Tuhu's approach has shifted the automotive aftermarket from a "passive repair" model to a "proactive care" service, enhancing customer experience through data-driven solutions [8][9] - The rise of Tuhu's private label products signifies a move towards consumer equality, challenging foreign brands with competitive pricing without compromising quality [9]