The automotive industry is undergoing a significant transformation, the likes of which hasn't been seen in a century, and this has become a consensus within the industry. The revolution is not limited to just the vehicle manufacturers. As the number of cars on the road increases, with 280 million vehicles in the Chinese market, it is evolving into the largest stock market for automobiles globally. Consequently, the after-sales service industry is also being reformed.
Moreover, in July, the penetration rate of new energy vehicles surpassed that of gasoline vehicles for the first time, exceeding 50%. New energy vehicles have accelerated the development of technologies such as intelligent cockpits and autonomous driving. The entire automotive supply chain and aftermarket needs to recognize the urgency of this transformation and expedite the introduction of corresponding products and services.
Emerging from a supporting role to take center stage, new energy vehicles are continuously evolving towards becoming high-tech-driving computers. The tire market, which supports these "computers," is closely linked with technological advancements and is undergoing a new wave of transformation.
On August 20, Tuhu Car Maintenance and Continental Tires held a joint press conference to officially launch the first tire series featuring Continental's ContiSeal self-sealing technology and ContiSilent noise-reduction technology—ExtremeContact XC7. This series employs a seventh-generation formula and “Wave” tread design, incorporating self-sealing and noise reduction technologies, boasting features that emphasize protection, silence, and control, thus meeting the majority of consumers' needs, and it will make its exclusive debut across all channels of Tuhu Car Maintenance.
Why did Continental Tires choose to premiere their cutting-edge technology exclusively through Tuhu? This can be traced back to consumer pain points and the history of collaboration between the two parties.
Creating an Integrated Online and Offline Model to Optimize User Tire Purchasing Experience
In the past, severe information asymmetry led to criticisms of automobile maintenance and repair practices such as "opaque pricing" and "over-promotion." When purchasing tires, consumers faced limited choices for brands and models. However, with the rise of online e-commerce, intermediaries have been eliminated, reducing costs and broadening options for tires. Yet, while e-commerce addressed the purchasing aspect, tires differ from ordinary goods; mid-term transport, subsequent installation, and product after-sales also require significant effort, which is often difficult for consumers to handle independently. If service quality is inconsistent, there remains no way to achieve a complete high-quality tire buying experience.
Tuhu Car Maintenance's advantages shine in this regard. Their integrated online and offline model allows consumers to place orders through the Tuhu App or online store. Products are dispatched from warehouses to the nearest retail location, where consumers can schedule installation times.
Thanks to Tuhu’s efficient and dense logistics network, some cities can even achieve same-day delivery, along with immediate installation. This significantly reduces consumer anxiety through the purchasing, transportation, and installation phases, offering a more convenient tire buying experience.
As of the end of June 2024, Tuhu Car Maintenance operates over 6,300 service centers in more than 300 cities nationwide, with registered users exceeding 120 million.
Nurturing a 9-Year Partnership for Comprehensive Collaboration in Channels, Services, and Product Technology
In fact, the collaboration between Tuhu Car Maintenance and Continental Tires dates back to 2015. Tuhu’s founder and CEO, Chen Min, recalls that the two parties began product sales channel cooperation that year and created the first offline flagship store for Tuhu Car Maintenance and General Tires, along with events like the Continental Super Car Owner Day, which delved deeper into brand, product, and technology collaborations.
China is currently the world's largest stock market for automobiles. In this context, Tuhu Car Maintenance and Continental Tires have enhanced their cooperation. From promoting sales channels to gathering product feedback and developing new products, they have engaged in more refined operations.
Currently, both parties are focusing on the entire lifecycle of tires, comprehensively upgrading after-sales guarantees, and introducing services like "Tuhu Gold Card: Worry-Free" that combine elements such as “genuine products + warranties,” exclusive customer service hotlines, joint brand activities, and genuine product traceability, further enhancing the consumer experience.
On the other hand, based on market trends and deep consumer insights, both parties jointly developed new products, with the XC7 being the best example. According to Tang Mingyou, General Manager of Continental Tires (China) Co., Ltd., this latest product emphasizes three major advantages: safety, quietness, and worry-free driving.
For tires, safety largely hinges on wet braking performance. The XC7, as a seventh-generation product, boasts nearly a 15% improvement in wet performance compared to its sixth-generation counterpart.
In July's wet braking tests conducted by China Automotive Technology and Research Center, this tire demonstrated a braking distance 4.3 meters shorter than the original tires on the test vehicle, marking a significant enhancement in safety.
The second aspect is noise reduction. The XC7's tread design employs a partitioned active noise cancellation system that effectively disperses noise frequencies, reducing wind noise.
Additionally, the XC7 incorporates noise-damping cotton technology that absorbs air vibrations, lowering cavity noise by up to 9 decibels.
The third point is worry-free travel. One of the distinguishing features of Continental Tires is its self-sealing technology, which ensures that tires do not fail at crucial moments. For foreign objects smaller than 5 millimeters, this tire can seal any leak points autonomously. Reports indicate that 5 millimeters covers roughly 92% of road scenarios where foreign objects are encountered, and the sealing agent lasts for up to 10 years. Its applicability spans a wide range of temperatures, from minus 35 to plus 70 degrees Celsius, effectively catering to nearly all climatic conditions in China.
Why focus on safety, noise reduction, and worry-free travel? This correlates closely with the increasing prevalence of new energy vehicles.
Chen Min noted that new energy vehicles have heavier bodies and more powerful motors while lacking the noise of traditional engines, which makes people more sensitive to tire noise. Thus, new energy vehicles demand higher standards for tire rolling resistance and load-bearing capacity, which drives the XC7 to include noise-reduction formulations and enhanced braking performance.
As people's aspirations to conquer picturesque settings and vast landscapes grow, the terrain challenges faced by tires become even more daunting. Self-sealing technology stands as the strongest support for these natural adventurers.
Targeted technological improvements stem from the fine insights Tuhu Car Maintenance and Continental Tires have into the needs of Chinese market customers.
As Times Change, Tuhu Car Maintenance and Continental Tires Continue to Co-create a New After-Sales Model
The launch of the XC7 is just one of many successful examples from the long-standing partnership between Tuhu Car Maintenance and Continental Tires. Together for nine years, they have built deep trust and developed a shared understanding of industry trends.
Chen Min stated, “We, alongside Continental Tires, see that user expectations are rising, and the channels through which users access information are growing as well. We aim for our products and services to reflect the corresponding value.”
Digitalization is one of the most effective means for both parties to provide quality products and services and improve operational efficiency in this new era.
Chen Min explained that auto parts and services tend to be more opaque to users compared to complete vehicles, making it difficult for consumers to learn and understand. Therefore, digitalization represents a significant change and offers greater efficiency in the entire automotive service and parts sector for consumers and the industry alike. “From routine oil changes and battery replacements to major repairs, digitalization can play a pivotal role.”
Tang Mingyou echoed this sentiment, highlighting that the acceleration of digitalization in China is becoming increasingly obvious. “We believe that the future synergy between service providers and parts suppliers will emerge as an intrinsic driving force in the automotive aftermarket.”
In summary, the shared goal of both parties is to ensure transparency and traceability throughout the entire supply chain, guaranteeing high-quality products and professional services are delivered to users efficiently.
In the era of intelligent electric vehicles, changing industry trends give rise to higher consumer demands, while the diversification of these demands compels the industry to continuously evolve in channels, efficiency, services, and technologies. These two aspects are complementary. Tuhu Car Maintenance and Continental Tires stand out as prime partners in this transformative age, setting a benchmark for supplier-service provider cooperation in the automotive after-sales industry. Their collaborative model is worthy of further promotion and exploration to accommodate China's rapidly expanding automotive stock market.
