#China #New York #SunCar Technology #Auto eInsurance #BYD Electric Vehicles

SunCar Technology Reports First Quarter 2025 Results

On May 19, 2025, SunCar Technology Group Inc., listed on NASDAQ as SDA, revealed its impressive financial results for the first quarter of 2025. The company, recognized as a pioneer in cloud-based auto eInsurance and auto services in China, reported a significant revenue increase of 20% from the previous year.

Financial Highlights

In the first quarter ended March 31, 2025, SunCar generated $102.6 million in revenue, contrasting with $85.6 million in the same period of 2024. This growth is attributed to successful partnerships with major electric vehicle brands and a raised profile in the B2B sector.

Key Partnerships

The strategic growth of SunCar's revenue stemmed from expanding collaborations with several key players in the automotive industry:
1. BYD Partnership: SunCar has forged a substantial relationship with 50 BYD dealerships located in East China, enabling innovative insurance solutions tailored for BYD’s premium electric vehicle lineup, including Yangwang, Tengshi, and Fangchengbao.
2. Leapmotor: SunCar completed a pioneering SAAS-based insurance solution for Leapmotor dealers, enabling independent insurance sales—thus creating an additional revenue stream for these dealerships.
3. Tesla Integration: The integration of Tesla’s service packages into SunCar’s platform provides customers with policy benefits directly linked to auto insurance purchases.
4. Other Collaborations: Partnerships with companies like Xiaomi and Zeekr have launched cloud-based customer service systems to enhance consumer engagement significantly.

Recent Achievements

In addition to revenue growth, SunCar secured a landmark designated driver contract with China Construction Bank (CCB), marking its entry into the financial sector. The projected revenue from this partnership is anticipated to reach RMB 60 million over the next 18 months. Furthermore, the company signed important contracts across 13 provincial branches with PICC, enhancing its footprint in the insurance market.

Financial Insights

• - Revenue Breakdown: The auto eInsurance segment saw a remarkable 37% growth, reaching $45.9 million. Technology services went up 41% to $10.7 million, while auto services revenue rose marginally to $46.0 million.
• - Cost and Expenses: Operating costs escalated to $105.5 million compared to $90.1 million last year, influenced by increased service promotion and integration expenses.
• - Operating Loss: The operating loss was narrowed to $3.0 million from $4.5 million in Q1 2024, showcasing improved operational efficiency.
• - Outlook: The company has set ambitious full-year 2025 revenue guidance between $521 million and $539 million, reflecting anticipated growth across all business segments.

Management Perspective

Zaichang Ye, Chairman and CEO, stated, "We are enthusiastic about our strong start to 2025, propelling from a successful 2024 and fortified by our expanding network of electric vehicle partnerships. Our investment in AI-driven solutions and product innovation is paving the way for sustained growth."

About SunCar Technology Group

Founded in 2007, SunCar represents a transformative force in China's automotive service and insurance space, boasting a comprehensive suite of cloud-based platforms that connect drivers to an extensive array of services through a vast network of sales partners. The company has firmly established itself as a leader in auto eInsurance for electric vehicles and B2B auto services, offering clients the ability to access and manage diverse insurance and service options seamlessly.

For further information on SunCar, visit SunCar’s official website.