The Shanghai-based EV insurance and services firm SunCar reported on Thursday a profitable quarter in the third quarter of 2025, achieving its previous commitment to reach profitability this year.
The company posted Q3 net income of $1.4 million and deepened its partnerships with Tesla, XPeng, and with the TikTok owner ByteDance.
The company, which partners with more than 20 EV makers in China, increased its earnings by $2.8 million in Q3 from a net loss of $1.4 million in the year-earlier period.
“I’m proud of the team for achieving positive net income this quarter, a key milestone that underscores SunCar is growing profitably,” Chairman and CEO Zaichang Ye said in a statement.
Revenue rose 6% to $115.8 million, while adjusted EBITDA increased 128% to $4.9 million.
“Our deep EV partner relationships — particularly our expanding AI co-development efforts with leaders like Tesla and XPeng — continue to drive both growth and value creation,” the CEO added.
Tesla Partnership Grows
SunCar said on Thursday it launched insurance operations at authorized Tesla body repair centers during the quarter and is helping the automaker expand into third- and fourth-tier Chinese cities without requiring dedicated delivery centers.
Earlier this year, the company said that insurance premiums from the Tesla partnership grew from approximately $400,000 in January 2024 to $40 million by year-end across 48 Chinese cities.
In 2025, the growth has again surged.
According to SunCar, its cloud AI insurance platform enabled Tesla to grow premiums by 190% from $113 million in the first nine months of 2024 to $328 million in the same period in 2025.
Tesla‘s renewal conversion rate has risen to 75%, which SunCar said exceeds industry norms, driven by personalized recommendations based on vehicle age, mileage, and maintenance history.
ByteDance AI Integration
In October, SunCar signed an AI technology cooperation agreement with Volcano Engine, ByteDance’s enterprise technology platform.
The company said on Thursday that it continues integrating ByteDance’s Doubao large language model (LLM) into its database of 60 million vehicles to develop AI-powered applications including dynamic policy pricing, claims risk assessment, predictive maintenance, and image and video analytics.
The company had previously stated that the integration is expected to improve policy matching accuracy by 40%, reduce underwriting-related claim costs, and lower customer acquisition costs by up to 70% through new AI-powered renewal tools.
EV Partnerships Expand
SunCar reported progress across its portfolio of EV maker relationships during the quarter.
The company leveraged its order processing platform to reduce Nio’s vehicle delivery times by 50% and lower delivery costs.
SunCar collaborated with XPeng on insurance renewals at branded stores, improving renewal rates.
Li Auto launched online insurance pilot programs in six regions — Shanghai, Chongqing, Xinjiang, Qingdao, Inner Mongolia, and Anhui — with a nationwide rollout planned for 2026.
System usage increased at Leapmotor as the automaker expanded SunCar’s solution from directly operated stores to dealer partners.
Huawei’s HIMA car conglomerate completed internal testing of SunCar’s platform on HarmonyOS, with full commercial deployment planned for the next phase.
SunCar also collaborated with Xiaomi to develop a new insurance and renewal customer service process.
The company led by Lei Jun will be launching its first extended range model in 2026.
As previously reported by EV, the company expanded its partnership with Nio in August to include coverage for the third-generation ES8 and the L90 from Nio‘s Onvo sub-brand.
Also earlier this year, XPeng extended its partnership with SunCar following the launch of its G7 SUV.
SunCar said on Thursday that it has “collaborated with XPeng‘s branded stores on insurance renewals, dramatically improving the renewal rates at these stores.”
Financial Details
Auto insurance revenue increased 13% to $51.4 million, driven by higher policy volume.
Technology services revenue was flat at $12.2 million, while auto services revenue edged up to $52.2 million from $52.1 million.
Operating profit rose to $2.9 million from $0.2 million in the prior-year period.
Promotional service expenses increased to $51.0 million from $42.7 million as the company invested in market expansion, while selling expenses decreased to $4.9 million from $10.5 million due to lower marketing and distribution costs.
For the first nine months of 2025, revenue increased 8% to $338.1 million compared with $312.7 million in the year-earlier period.
Auto Services Contracts
SunCar secured a contract to provide VIP transport services at the Strawberry Music Festival, China’s largest music festival. The customer plans 25 events across China in 2026, with the contract estimated at approximately $3 million annually for three years.
The company also signed a strategic partnership with CAR Inc. to develop the small and medium business market and was selected to provide global business travel privileges for VIP clients of Zheshang Bank.
SunCar completed the acquisition of Jiayi Auto Insurance during the quarter and initiated the acquisition of Dalian Jinhainiu Insurance to expand regional coverage.
