SunCar Technology Group Inc. (“SunCar” or the “Company”) (NASDAQ:SDA), a leading provider of digitalized enterprise automotive after-sales services and online auto insurance intermediation services in China, announced that it has launched its online insurance solution for customers of Li Auto Inc.’s (NASDAQ:LI) new energy vehicles (NEV). Accessible via the Li Auto car owners’ app, SunCar can offer various online insurance solutions, including H5 on the mobile, so car owners can quickly and conveniently compare and purchase auto insurance and other services.
Mr. YE Zaichang, Chairman and CEO of SunCar commented, “We are very pleased to announce this deal with Li Auto, one of the largest NEV manufacturers in China. Li Auto has delivered over 244,000 cars year-to-date through September 2023 and has recently received new orders for over 40,000 cars per month, representing a highly attractive potential market for our insurance products. SunCar has always been committed to solving substantive problems for customers with industry-leading products and services. Although there are many auto insurance options for drivers, including SunCar’s insurance offerings in the Li Auto app should make it the default choice for all Li Auto customers. We believe that SunCar’s continued cooperation with Li Auto will expand our customer base and begin a new avenue of significant potential growth for the Company.”
SunCar has already achieved the largest market share for after-sales services in the NEV space by utilizing a nationwide service supplier network. China is the largest car ownership market in the world, with an estimated 11% compound annual growth rate (2017-2023E). The Company believes that expanding its auto insurance offerings will grow its business and provide synergies with its existing online automotive services offerings. Auto insurance requires regular renewal, thus creating more return users of SunCar’s online services and a more stable, subscription-based revenue stream in the future.
Li Auto Inc. is a leader in China’s new energy vehicle market. Li Auto designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Create a Mobile Home, Create Happiness. Through innovations in product, technology, and business model, Li Auto provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. Li Auto started volume production in November 2019. Its current model lineup includes Li L9, a six-seat flagship family SUV, Li L8, a six-seat premium family SUV, and Li L7, a five-seat flagship family SUV. Li Auto leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions while expanding its product line by developing new BEVs and EREVs to target a broader user base. (https://ir.lixiang.com/)
