(Yicai Global) Aug. 22 -- Since the arrival of Ping An Insurance (Group) Company of China, Ltd. [SHA:601318; HK:2318] as its largest shareholder, Autohome Inc. [NYSE:ATHM], a former content-driven vertical automobile media platform, has been driving a major business transformation. However, "media remains to be the business in which its core competitiveness lies."

Ping An acquired a 47.4 percent stake in the company in June 2016. The new controlling shareholder appointed Lu Min, former general manager at Ping An Health, as chairman and chief executive of the auto information and service firm. 

Four months later, Lu proposed a new strategy focusing on the development of four ecosystems -- 'auto media, auto e-commerce, auto finance and auto lifestyle', with the aim of transforming the company from a vertical auto media website into an auto data technology operator.

However, its vice president Kang Yan told Yicai Global that although Autohome is scaling up new businesses, media will continue to be its most competitive business. "All other businesses that Autohome operates relies on online traffic generated by media services," Kang said. The daily web traffic from the media business now tops 30 million visitors every day, he revealed.

The firm hopes to shift away from the advertising-reliant business model and generate profits from transactions instead revolving around 'data technology.' The benefits of the business transformation is not visible yet though.

Auto finance, e-commerce and other new businesses will deliver results starting next year, Lu Min suggested. The company unveiled two asset-light platforms for new and used car businesses in June. Autohome will roll out its e-commerce services in more third- to fifth-tier cities in future, Lu added.

In fact, ever since the management reshuffle, Autohome has been reducing its stocks of new cars. The 'proprietary car trading' model has been phased out, replaced by an asset-light strategy. Autohome's biggest strength lies in online operations, and an asset-light business model will benefit its partners most, Lu suggested.

However, 'auto finance' business has just started, he said. The firm needs to create an independent financial platform and develop the business based on transactions. Similarly, 'auto lifestyle,' a business focusing on the aftermarket products and services, is also in an initial development stage. "[We] will push forward the auto finance business leveraging our three core advantages, namely traffic, data and sales leads," he said.