Chinese automotive services company Tuhu has agreed to acquire Australia’s mycar Tyre & Auto network from German tyre manufacturer Continental in a transaction valued at approximately A$403 million.
Announced on 24 September 2026, the proposed acquisition covers around 280 mycar locations and more than 1,600 employees across Australia.
The agreement represents a significant ownership change in the Australian automotive aftermarket, with one of the country’s largest tyre and mechanical servicing networks set to become part of a Chinese automotive services group operating thousands of workshops.
The transaction remains subject to regulatory approvals.
From Kmart Tyre & Auto to mycar
mycar has operated under several owners and identities during its history.
The business was previously known as Kmart Tyre & Auto Service, a national network providing tyres, vehicle servicing and mechanical repairs.
In August 2018, Wesfarmers announced an agreement to sell Kmart Tyre & Auto Service to Continental for A$350 million.
At the time, the network operated 258 stores and employed more than 1,200 people. Wesfarmers also identified the business as Australia’s largest single employer of apprentice motor mechanics.
The acquisition was completed in November 2018.
Continental subsequently introduced the mycar Tyre & Auto brand in 2019, replacing the Kmart Tyre & Auto Service name and establishing a separate identity for the automotive servicing business.
Under Continental’s ownership, mycar continued operating nationally, providing scheduled servicing, mechanical repairs, tyres, brakes, batteries and other vehicle maintenance services.
By September 2026, the network had grown to approximately 280 locations with more than 1,600 employees.
The proposed sale to Tuhu would mark another change of ownership for a business that has been part of Australia’s automotive servicing sector for decades.
Who is Tuhu?
Tuhu is a Chinese automotive services company listed on the Hong Kong Stock Exchange.
Its operations combine digital automotive services with a large physical network of tyre, maintenance and repair workshops.
According to its interim financial results for the six months ended 30 June 2026, Tuhu’s network comprised 8,825 workshops, including 8,655 franchised locations and 170 self-operated workshops.
That represented an increase from approximately 7,205 workshops a year earlier.
The company reported 175 million registered users and approximately 31 million transacting users over the preceding 12 months.
Tuhu’s business model allows customers to access automotive products and services through digital channels, with participating workshops carrying out the physical servicing, repairs and product installation.
Its activities include tyres, automotive maintenance products, mechanical servicing and related vehicle services.
The acquisition of mycar would provide Tuhu with an established Australian business, including a recognised brand, national workshop network, existing employees and customer relationships.
It would also represent a substantial international expansion beyond its principal Chinese operations.
Why Continental is selling
Continental originally acquired Kmart Tyre & Auto Service to strengthen its Australian tyre distribution and retail presence.
The purchase gave the German manufacturer access to an established national network of automotive service locations.
Eight years later, Continental has announced a different strategic direction.
The company said the proposed sale of mycar is consistent with its focus on tyre development and manufacturing, rather than direct ownership of automotive servicing operations.
Continental has also developed its Australian tyre distribution business since acquiring the network in 2018.
Importantly, the proposed sale does not mean Continental is leaving the Australian market.
The company has confirmed that it intends to maintain a commercial relationship with mycar, including continuing to supply tyres following completion of the transaction.
Understanding the $403 million valuation
The transaction has been announced at an enterprise value of approximately A$403 million, equivalent to around €250 million.
Enterprise value is a measure used in business acquisitions and is not necessarily the final amount of cash paid to the seller.
The eventual consideration may be affected by adjustments relating to debt, cash and working capital.
The announced valuation is also A$53 million higher than the A$350 million figure associated with Continental’s acquisition of Kmart Tyre & Auto Service in 2018.
However, the difference between those two headline amounts should not be interpreted as Continental’s profit from owning the business.
The transactions occurred eight years apart, involved different financial circumstances and may not have identical valuation structures.
Chinese automotive investment extends into servicing
Chinese automotive companies have become increasingly prominent in Australia’s new-vehicle market, particularly through the expansion of brands such as BYD, MG, GWM, Chery and Geely.
Tuhu’s proposed acquisition represents a different form of investment.
Rather than introducing another vehicle brand, the company is seeking to acquire an established business that services and repairs vehicles already operating on Australian roads.
The automotive aftermarket includes mechanical workshops, tyre retailers, parts suppliers and businesses providing ongoing vehicle maintenance.
mycar operates across several of these categories through its national service network.
The proposed transaction would therefore give Tuhu an immediate presence in a substantial part of Australia’s automotive industry without having to establish a new workshop network from the beginning.
What happens to mycar’s stores and employees?
Continental’s announcement confirmed that approximately 280 locations and more than 1,600 employees are included in the proposed transaction.
At the time of the announcement, the companies had not confirmed plans for store closures, redundancies or changes to the mycar brand.
Nor had they detailed how Tuhu’s digital systems, supply arrangements or workshop operating model might be introduced into the Australian business.
Any changes of that nature would require further announcements.
The transaction must also receive the necessary regulatory approvals before ownership can transfer.
Until completion is confirmed, mycar remains under its existing ownership arrangements.
A major change for an established Australian business
The proposed acquisition would see mycar move from Continental ownership to a Chinese automotive services company with a network exceeding 8,800 workshops.
For mycar, it would be the third major stage in its recent corporate history: operating as Kmart Tyre & Auto Service under Wesfarmers, becoming mycar under Continental, and potentially joining Tuhu.
For Australia’s automotive aftermarket, the transaction is a significant example of international investment in an established national servicing and repair business.
The agreement has been announced, but its completion and any subsequent operational changes remain subject to further confirmation.
Sources: Continental AG, 24 September 2026; Wesfarmers, August 2018; Tuhu Car Inc., interim financial results for the six months ended 30 June 2026.