High car ownership drives Tuhu Car Care's Penang expansion

KUALA LUMPUR: Tuhu Car Care is expanding into Penang with the simultaneous opening of three stores, targeting a northern Malaysian market where car ownership is among the key drivers of demand for automotive maintenance and after-sales services.

"Penang provides a significant market for automotive services," Vincent Chen, the company's regional head, said in a statement.

According to the Statistics Department, 92 per cent of households in Penang owned a car in 2024, close to the national average of 92.3 per cent, highlighting the potential market for services such as tyre replacement, engine oil changes, battery replacement and vehicle maintenance.

Chen said the expansion into Penang marks the company's move beyond Kuala Lumpur into another major Malaysian city as the company seeks to build a multi-city automotive service network and grow its overseas business.

He said the expansion beyond Kuala Lumpur also demonstrates the company's long-term commitment to making automotive services more accessible across the country.

Tuhu Car Care previously established operations in Kuala Lumpur and surrounding areas, where it began trial operations to test its online appointment system, product selection, transparent pricing and in-store services.

The company's model allows consumers to purchase automotive products, including tyres, engine oil and batteries, through its online platform before booking appointments for installation, maintenance and other services at its stores.

Penang's high car ownership comes against a backdrop of sustained demand for vehicles nationwide. Malaysia recorded 870,300 new registrations of four-wheeled vehicles in 2025, including 759,100 passenger vehicles, according to figures from the Road Transport Department and the Malaysian Automotive Association.

Chen said the growing vehicle population provides a potential customer base for automotive after-sales services, as motorists require regular maintenance and replacement parts throughout their vehicles' lifespans.

Tuhu Car Care currently operates more than 20 stores in Malaysia. The three simultaneous openings in Penang represent a further step in its efforts to expand beyond the Klang Valley and reach motorists in other urban centres.

Alongside the Penang expansion, Tuhu Car Care and Continental have introduced three tyre products in Malaysia. The products are designed to address local driving conditions, including frequent rainfall and the demands of motorists who cover high daily and long-distance mileage.

Industry research by Malaysian automotive platform Motorist Malaysia indicates that many Malaysian drivers travel 20,000 to 30,000 kilometres annually, placing importance on tyre handling, ride comfort and wet-road braking.

Looking ahead, Tuhu Car Care plans to expand into additional Malaysian cities, with decisions guided by local driving habits and market demand.