On January 11, 2023, Cango announced that the Company launched its “Cango U-Car” mobile application (the “APP”) providing one-stop transaction support services to used car dealers across the country. As a complement to Cango’s new car trading platform, “Cango Haoche,” “Cango U-Car” represents a powerful addition to Cango’s automotive transaction service offerings. Going forward, Cango will continue to empower dealers and partners through both new and used car transaction services.

Leveraging big data and digital technology, “Cango U-Car” provides a broad array of safe, reliable and efficient used car transaction services, including historical vehicle condition reports, vehicle evaluation, limited-time price quotes, online car search, used car listing, and self-owned used car purchase, as well as diverse functions to facilitate logistics, financing, insurance and more.

Mr. Xin Chen, deputy general manager of Cango and head of the used car business unit, said, “Over the last decade, Cango has developed a strong presence and reputation in the lower-tier automotive distribution market. We have built an immense channel network that covers tens of thousands of dealers across the country and serves more than 2 million customers. In addition to our first-mover advantage in sales channels and vehicle sources, Cango leads the market with mature transaction support capabilities such as warehousing and logistics, financing and insurance. In short, entering the used car market is a natural next step for Cango and a perfect opportunity to expand by leveraging our outstanding service capabilities and rich marketing experience.”

Driven by both automotive intelligence and electrification, the global automotive industry, including the China market, has been experiencing significant changes in recent years which are rapidly reshaping the market landscape. According to public data, car ownership in China has soared to over 300 million vehicles as of the end of 2022, making it the world’s highest car ownership by country. However, used car transaction volume in China during the same period was less than 16 million or about 5.3% of total car ownership, compared with 15.4% in the United States and 14.4% in Germany. China’s used car market has tremendous potential.

In 2022, a series of favorable policies were released in quick succession to completely remove the barriers that historically impeded used car circulation in China, such as lifting nationwide restrictions on the cross-regional transfer of used vehicles that meet national stage V emission standards, allowing temporary ownership registration by dealers, and limiting the number of used car transactions by individuals. These measures will be a game changer in used car transactions, shifting the focus of competition from price to quality, service, and user interest protection. Against this backdrop, the role of the transaction platform becomes increasingly prominent.

Cango has built its digital platform, “Cango U-Car,” to form a broad and deep network for used car industry, efficiently connecting used car sources, customers, and capital funds, supplemented by standardized support services spanning the entire transaction chain. With these advantages, Cango can promote truly efficient cross-regional circulation of used cars across the country, streamline the used car transaction process and increase dealers’ operating profits.

With five functional modules covering vehicle sourcing, car search, limited-time price quotes, transaction support services and other digital services, “Cango U-Car” is thoughtfully constructed to address dealers’ diverse demands. Currently, the “Cango U-Car” APP is designed primarily for used car dealers across the country and operated independently and separately from the mini-program, whose major customers are individual used car owners. Maintaining both options will enable “Cango U-Car” to capture the underlying needs of different industry players precisely and provide more secure, reliable, varied and efficient one-stop services through digital technology.

Following the APP’s launch, the Company kicked off its “Cango U-Car New Year Service Festival,” unveiling a series of special offers and unprecedented discounts, including deals on maintenance queries, loss queries, motor vehicle accident liability compulsory insurance verification, value-added tax invoices, and vehicle certificate verification, among other services.

Going forward, Cango will continue to enhance its car transaction service platform ecosystem through big data and technological innovation, and expand its product portfolio to cover auto financing, auto transaction and after-market services based on consumers’ needs. By working with its partners, Cango endeavors to make car purchases simple and enjoyable, and make itself customers’ car purchase service platform of choice.