SunCar Technology Expands Strategic Partnership with Ping An Property & Casualty Across Key Provinces

Rhea-AI Summary

SunCar Technology Group (NASDAQ: SDA) has secured new and renewed partnerships with Ping An Property & Casualty Insurance branches across multiple Chinese provinces, with contracts totaling 30 million RMB (USD 4.2 million). The partnerships include first-time collaborations with Shanghai and Guangdong branches, renewals with Hebei and Shanxi, and re-engagement with Foshan. SunCar will expand its service offerings to include premium auto services like clay bar waxing, polishing, and air conditioning sterilization. The company now collaborates with all of Ping An P&C's top 10 provincial branches by premium scale.

Positive

• Secured contracts worth 30 million RMB (USD 4.2 million)
• Expanded partnership to all top 10 Ping An P&C provincial branches
• Added new premium service offerings expanding revenue potential
• Gained two new major market territories (Shanghai and Guangdong)

Negative

• None.

Insights

Business Development Analyst

The expanded partnership with Ping An P&C represents a significant strategic win for SunCar, with 30 million RMB in new and renewed contracts. The deal's importance extends beyond its monetary value in several key ways:

The geographic expansion into Shanghai and Guangdong markets, particularly notable as these are among China's wealthiest regions, opens substantial growth opportunities. SunCar has now secured partnerships with all of Ping An's top 10 provincial branches, creating a formidable competitive moat.

The introduction of premium services like clay bar waxing and advanced maintenance options suggests higher margin potential and reduced commoditization risk. This service expansion, combined with the existing airport pickup program, positions SunCar as a comprehensive auto services provider rather than just a basic car wash operator.

Market Research Analyst

This development strengthens SunCar's competitive position in China's auto services market through several strategic advantages:

• Enhanced service differentiation through premium offerings
• Deeper integration with a major insurance partner
• Geographic expansion in key economic regions

The partnership with Ping An P&C, one of China's largest insurers, provides SunCar with a reliable revenue stream and access to a high-value customer base. The expanded service portfolio and geographic reach should drive higher customer retention and create additional cross-selling opportunities, potentially leading to margin expansion.

New and Renewed Contracts Totaling 30 million RMB to Enhance Automotive Services Nationwide

NEW YORK, Oct. 24, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (NASDAQ: SDA) ("SunCar" or the "Company"), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, is pleased to announce new and renewed partnerships with several branches of Ping An Property & Casualty Insurance Co., Ltd. ("Ping An P&C", 2318.HK), including in Shanghai, Guangdong, Foshan, Hebei, and Shanxi. The total contract value from these agreements exceeds 30 million RMB (approximately USD 4.2 million), marking another major milestone in SunCar's ongoing collaboration with one of China's largest insurance groups.

This latest milestone includes a mix of new partnerships and contract renewals. Notably, the Shanghai and Guangdong Ping An branches are partnering with SunCar for the first time, while the Hebei and Shanxi branches have renewed their long-standing collaborations with SunCar. Foshan Ping An is re-engaging with SunCar after a hiatus.

The scope of these new agreements goes beyond traditional car wash and maintenance services. SunCar will introduce an expanded suite of premium auto services, including clay bar waxing, polishing, wheel alignment, ozone disinfection, and air conditioning sterilization. These value-added services allow Ping An P&C to deliver an exceptional customer experience, broadening its service offerings provided through SunCar's collaboration.

As of October 2024, SunCar's automotive service collaborations now extend to all of Ping An P&C's top 10 provincial branches by premium scale, including Guangdong, Jiangsu, Zhejiang, Shanghai, Sichuan, Shenzhen, Shandong, Hebei, Beijing, and Anhui. This extensive network further solidifies SunCar's leading position in the auto services market. The expanded partnership builds on SunCar's earlier successes with Ping An P&C, including a notable June 2024 collaboration that focused on premium airport pickup services for high-value Ping An clients. With this latest round of contracts, SunCar continues to demonstrate its ability to scale and deliver tailored solutions across multiple service categories, positioning itself as a key partner to Ping An P&C's extensive nationwide network.

Ye Zaichang, Chairman and CEO of SunCar commented, "Our expanding partnership with Ping An P&C reflects our shared commitment to delivering exceptional auto services to customers. The addition of new service offerings ranging from in-depth car care to high-end disinfection solutions underscores our ability to meet the evolving needs of Ping An's clients and demonstrates the trust and confidence they place in us. As we deepen our cooperation, we are enhancing the service portfolio but also expanding the number of partnered car wash locations, upgrading service quality, and supporting Ping An in promoting their insurance products."

He added, "We are proud to support Ping An in elevating customer experience, and we believe this collaboration will continue to drive significant growth for both companies. These initiatives will further strengthen SunCar's industry reputation and increase our market share in the automotive service sector."

About SunCar Technology Group Inc.

Founded in 2007, SunCar is transforming the customer journey for auto services and auto insurance in China, the largest passenger vehicle market in the world. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners. As a result, SunCar has established itself as the leader in China in the B2B auto services market and the auto eInsurance market for electric vehicles. The Company's intelligent cloud platform empowers its enterprise clients to access and manage their customer database and offerings optimally, and drivers gain access to hundreds of services from tens of thousands of independent providers in a single application. For more information, please visit: https://suncartech.com. 

Forward-Looking Statements

This press release may contain information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company encourages you to review other factors that may affect its future results in the Company's annual reports and in its other filings with the Securities and Exchange Commission.

Contact Information:
SunCar:
Investor Relations: Ms. Hui Jiang
Email: IR@suncartech.com
Legal: Ms. Li Chen
Email: chenli@suncartech.com

U.S. Investor Relations
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

View original content:https://www.prnewswire.com/news-releases/suncar-technology-expands-strategic-partnership-with-ping-an-property--casualty-across-key-provinces-302285269.html

SOURCE SunCar Technology Group Inc.

FAQ

What is the total value of SunCar Technology's (SDA) new contracts with Ping An P&C?

The total contract value exceeds 30 million RMB (approximately USD 4.2 million).

Which new provinces did SunCar Technology (SDA) expand to in October 2024?

SunCar expanded to Shanghai and Guangdong through first-time partnerships with Ping An P&C branches in these regions.

What new services will SunCar Technology (SDA) offer through the Ping An P&C partnership?

SunCar will offer premium auto services including clay bar waxing, polishing, wheel alignment, ozone disinfection, and air conditioning sterilization.

How many of Ping An P&C's top provincial branches does SunCar (SDA) now collaborate with?

SunCar now collaborates with all of Ping An P&C's top 10 provincial branches by premium scale.