Jekun Auto

About Jekun Auto

Jekun Auto, established in 2013 by founder and Chairman Gao Jiqun, operated within the Chinese automotive aftersales market. Gao Jiqun brought experience from the retail sector, having previously served as vice president of the household device retailer Gome Electrical Appliances. The Guangzhou-based company focused on providing automotive maintenance services through a network of franchised stores. Its business model centered on small and medium-sized repair shops joining its network to attract customers for services primarily aimed at traditional gasoline-powered vehicles. Since its founding, the firm secured over CNY 400 million, equivalent to approximately USD 55.9 million, across seven separate financing rounds.

The company's trajectory was significantly impacted by shifts in the automotive industry and broader economic factors. A primary challenge arose from the increasing popularity of new energy vehicles (NEVs) in China. Unlike internal combustion engine cars that require frequent engine servicing, key components of EVs like batteries, motors, and electronic control systems are typically managed directly by the manufacturers, limiting the repair and replacement opportunities for third-party service providers. This market evolution, combined with the economic effects of the pandemic and a ruptured capital chain, led the company to a critical juncture. In January 2024, Jekun Auto officially filed for bankruptcy and initiated liquidation proceedings, citing the challenging economic environment and the structural changes in the auto aftersales market as reasons for its inability to continue operations.