Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 74

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 74
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 the steadily
growing number of vehicles in use, particularly the EVs, the expanding demand for various value-added service such as designated driving,
and the convenience resulting from the all-round service solutions provided, the demand for integrated auto service is expected to enjoy
a sustained growth in the long run.

More Standardized Service
Delivery Procedures and Products

In order to better manage
their extensive service networks, a few leading players have designed a series of service standards and continuously improve their service
delivery procedures by enhancing the standardization of their products and services. Going forward, this will be a key development focus
for the integrated auto service providers who aim to rapidly expand service networks without sacrificing the quality of the services delivered
by their offline channel partners.

Integration and Consolidation
in the Value Chain

As the profit margin of the
market is comparatively low, certain integrated auto service providers opt to establish their service networks by integrating the scattered
and independent offline service providers, which allows them to expand their geographical reach and service scope in a cost-effective
way, and promotes resource integration along the value chain. This results in a win-win partnership between online platforms and offline
service providers. In the future, this model is expected to be widely-adopted and the consolidation will increase, with leading players
acquiring or engaging more service providers to expand the reach of their network across the country.

More Innovation in the
Online-to-Offline Business Mode

Attracted by the market potential,
many auto service providers have developed their online-to-offline service platforms to deliver auto services. However, the homogeneous
business model, low consumer loyalty and lack of competitive advantages are of great concern to integrated auto service providers. Developing
more innovative business models to optimize the resources online and offline have become one of the priorities for current players and
new entrants to capture the opportunities in the current market as well as the high-potential EV market, among the increasingly intensified
competition.

BUSINESS OF SUNCAR

Overview

We are a leading provider
of cloud and mobile app-based auto eInsurance services, technology services, and auto services in China. For the years ended December
31, 2024 and 2023, we generated revenue of $441.9 million and $363.7, respectively. Building on our leading position in both of these
segments and the synergies between them, we offer one-stop, fully digitalized, on-demand auto service systems to help our enterprise customers
build up their customer base and serve their end customers.