JD's strategic plan for venturing into the emerging electric vehicular sector
JD Auto, a prominent player in China's automotive sector, is strategically focusing on the supply chain, leveraging cloud services and digital technologies to drive the digital evolution of underlying industry systems. This strategic thrust is part of JD's broader goal to build an ecosystem for the entire lifecycle of car ownership.
The market for new energy vehicles (NEVs) has become intensely competitive, with 2024 marking a significant year in the industry. Interestingly, 56% of NEV buyers have already chosen their models before visiting a physical dealership, signifying a shift in the traditional automotive retail and service model. This trend is further reflected in the data, as 55% of vehicle purchases in 2023 were upgrades, a trend expected to continue.
JD Auto's journey in the automotive industry dates back 20 years, with humble beginnings selling a car mat to a car owner. The company entered comprehensive automotive product sales in 2012 and established the JD Auto division in June 2023. Today, JD Auto operates over 1,500 car care outlets nationwide and has partnerships with over 40,000 stores.
To address decision-making difficulties and information overload in car purchasing, JD Auto has launched an innovative O2O (online-to-offline) model. This approach aims to streamline the car buying process and provide a seamless experience for customers.
In a bid to facilitate vehicle replacements, JD Auto has announced a joint investment of RMB 500 million. This investment will be utilized to support users in upgrading their vehicles. In collaboration with numerous associations and brands, JD Auto will launch a tire replacement program, starting from the 2024 tire shopping festival.
JD Auto's focus is squarely on new energy vehicles. The company has over 600 million users, with more than 200 million being car owners. Remarkably, over 100 million car owners have independently linked and uploaded precise information about their vehicles on JD's platform.
In a significant move, JD Auto has partnered with BYD, a leading manufacturer in the NEV sector. This strategic partnership, announced on July 21, 2025, focuses on the comprehensive construction of automotive omnichannel marketing and after-sales service systems. The collaboration extends beyond JD Auto to encompass JD's logistics and industrial domains.
The automotive sector is undergoing a transformative shift, moving from a supply-driven to a demand-driven industry. This transition is echoed by JD Auto's representative at a recent summit. JD Auto, also known as Jingdong, is positioning itself at the forefront of this change, aiming to build an ecosystem that caters to the entire lifecycle of car ownership, rather than manufacturing cars.
In conclusion, JD Auto is leveraging digital technologies and strategic partnerships to create a more customer-centric automotive industry, focusing on new energy vehicles and providing comprehensive services for car owners. The company's innovative approach is set to redefine the automotive retail and service landscape in China.
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