<article><a href="https://www.dealstreetasia.com/?s=SouChe">SouChe</a>, a Chinese automotive platform backed by several investors including Ant Financial and <a href="https://www.dealstreetasia.com/?s=Alibaba">Alibaba</a>, announced that it has acquired used car marketplace <a href="https://www.dealstreetasia.com/?s=Cheyipai">Cheyipai.</a>
In an announcement, SouChe said, Cheyipai will be operated independently under its original brand, team, and organizational structure.</article>

<a href="https://www.dealstreetasia.com/?s=SouChe">SouChe</a>, a Chinese automotive platform backed by several investors including Ant Financial and <a href="https://www.dealstreetasia.com/?s=Alibaba">Alibaba</a>, announced that it has acquired used car marketplace <a href="https://www.dealstreetasia.com/?s=Cheyipai">Cheyipai.</a>
In an announcement, SouChe said, Cheyipai will be operated independently under its original brand, team, and organizational structure.
&#8220;It is rather strategic collaboration rather than merely acquisition but the capital cooperation will enhance the relationship between the two companies,&#8221; said SouChe CEO Kevin Yao.
Cheyipai, launched in 2016, focuses on used-car inspection and online auction. Through the platform, car dealers make bids online based on inspection reports, allowing auctions to be completed in 15 minutes.
Currently, Cheyipai&#8217;s trading network has covered more than 600 cities across the country. The platform has more than 65,000 car dealers and it has inspected and traded more than 3 million used cars.
SouChe, which successfully raised more than $600 million of funding from a number of investors in 2017, said it has digitalized the operation for over 30,000 used car dealers, 60,000 Tier 2 new car dealers, and 5,000 4S (sale, spare parts, service, and survey) stores.
Through cooperation with automobile manufacturers, Ant Financial, and offline car dealers, SouChe launched its car leasing product, TanGeChe, which requires only 10-per cent down payments for new cars.
The announcement also revealed that SouChe is also working on the acquisition of iyunche.cn, a vehicle logistics platform, to provide better delivery services to used car transactions.
The deal is expected to build up the core competitiveness of used car trading, namely quick deal, better price, and fast delivery, SouChe said.
Yao said, the trading volume of used cars reached tens of millions in 2017, while less than 10 per cent of the figure was contributed by the top three e-commerce platforms of used cars.
“As long as a new growth point is created, all the players will have the opportunity to get into the arena for next level of competition,” Yao said.
Before the acquisition, the main players in online used car market were Guazi, xin.com, and renrenche. SouChe&#8217;s acquisition of Cheyipai will change the competition from a game of three players to a game of four players, industry insiders predicted.
In an interview with CNBC, Yuan, SouChe&#8217;s CFO, said China&#8217;s auto retail and finance market is at more than Rmb10 trillion ($1.57 trillion).
&#8220;I think the growth rate for the next five years will be close to 20 percent,&#8221; Yuan was quoted as saying.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-used-car-financing-startup-meilichi-secures-92m-series-b-round-led-new-hope-group-91567/">China’s used car financing startup Meiliche secures $92m led by New Hope Group</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/didi-chuxing-invests-200m-in-chinese-used-car-platform-renrenche-83001/">Didi Chuxing invests $200m in Chinese used car platform Renrenche</a>

Chinese automotive platform SouChe, which is backed by Ant Financial and Alibaba, announced that it has acquired used car marketplace Cheyipai to build a whole new platform for used car trading in the country.

Alibaba-backed Chinese car trading platform SouChe acquires rival Cheyipai

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Alibaba-backed Chinese car trading platform SouChe acquires rival Cheyipai

Continue reading this premium story with a subscription to DealStreetAsia.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief