Continental has agreed to sell mycar Tyre & Auto to Chinese automotive service platform Tuhu in a deal valuing the Australian business at A$403 million. The 279-store network will remain a Continental tyre distribution partner after completion, while Tuhu gains an established platform for a substantial operating expansion outside China.
Under the agreement, Tuhu Car (Hong Kong) Limited will acquire the entire issued share capital of Conti Trade Australia Pty Ltd, the Continental subsidiary that owns mycar Tyre & Auto.
The transaction is based on an agreed enterprise value of A$403 million, approximately €250 million. Tuhu’s regulatory filing provides a more detailed breakdown of the consideration, estimating the cash payment at completion at A$278.33 million after adjustments for mycar’s net debt and working capital. That figure remains subject to post-completion adjustment and should not be treated as the final purchase price.
Tuhu expects to fund the acquisition through a combination of internal cash and acquisition financing, for which it has received bank credit approval of up to RMB1 billion. Completion remains conditional on Australian competition clearance and foreign investment approval.
The deal transfers 279 mycar stores and more than 1,600 employees to Tuhu. The target business generated revenue of A$524.7 million in 2025, up from A$491.8 million in 2024, according to Tuhu’s filing.
For Continental, the transaction removes direct ownership of one of Australia’s largest tyre and automotive servicing networks without severing its route to market through the chain. Continental said mycar will continue selling its tyres after completion, while the manufacturer has also developed its own Australian sales organisation.
That distinction is important. The transaction changes ownership of the retail and servicing operation, but Continental is not withdrawing from Australia or ending its distribution relationship with mycar.
Continental originally acquired Kmart Tyre and Auto Service in 2018 to expand its Australian tyre distribution network. At the time, KTAS operated 258 branches and the announced acquisition price was A$350 million. The chain was subsequently renamed mycar and has expanded to 279 stores.
The 2018 purchase price should not, however, be compared directly with the A$403 million enterprise value to calculate a gain on the investment. Continental’s annual report recorded a total 2018 purchase price of A$357.5 million, while the current transaction uses enterprise value and includes adjustments for debt and working capital. The business itself has also changed over the intervening eight years.
For Tuhu, mycar provides an established national platform rather than requiring the company to build an Australian network from scratch. Tuhu told investors that the acquisition would establish a meaningful operating presence outside China and provide a foundation for further international expansion. As of 30 June 2026, Tuhu reported a network of 8,825 workshops and around 31 million transacting users over the preceding 12 months.
Tuhu has identified digital store management, procurement, supply chain management and workshop operations among the capabilities it expects to bring to the enlarged business. No detailed integration programme or changes to mycar’s tyre-brand sourcing have yet been disclosed.
The disposal also sits within Continental’s wider move towards becoming a tyre-focused group. In July, the company agreed to sell ContiTech to Lone Star Funds for an enterprise value of €4.0 billion, and Continental introduced a new regional reporting structure for its tyre-focused business from the third quarter of 2026.
For mycar customers and tyre suppliers, the immediate structure therefore combines a significant ownership change with continuity in Continental tyre distribution. The longer-term operational direction will depend on how Tuhu applies its automotive service experience to the Australian network after regulatory clearance and completion.
Tags: Continental, mycar Tyre & Auto, Tuhu, Australian tyre retail, tyre distribution, automotive aftermarket, tyre retail acquisition, Continental Australia, Tuhu Australia, automotive service network
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