'Record-High Performance' Autohands Succeeds in Structural Improvement Ahead of IPO... What is its Next Move Amid the Intensifying Used Car Market Battle?

Autohands, which operates the domestic mid-to-large used car distribution platform Auto Inside, has achieved record-high performance driven by a qualitative transformation of its business model and an aggressive inventory securing strategy. Having recently selected Mirae Asset Securities as its IPO underwriter and begun full-scale preparations for an initial public offering (IPO), market attention is focused on Autohands' future moves as the used car industry faces a so-called 'Warring States period' of intense competition due to competitors' successive IPO pushes and large conglomerates entering the market.

Simultaneous Achievement of Explosive Top-line Growth and Profitability Improvement

Autohands has achieved remarkable top-line growth over the past few years. Its operating revenue (sales), which was approximately 45.8 billion won in 2021, surged more than fivefold in just four years to about 238.5 billion won in 2025, drawing a steep upward curve.

Not only top-line growth, but profitability indicators have also significantly improved. Operating profit, which was approximately 3.7 billion won in 2024, increased sharply by more than 92% year-on-year to about 7.5 billion won in 2025, succeeding in catching both rabbits of outward expansion and internal consolidation.

Behind this dazzling growth lies a diversified business portfolio. While making its core revenue source of used car sales (product sales) a solid foundation, Autohands is diversifying its profit structure into mobility services such as free warranties and auction/public sale commissions, as well as the vehicle rental business, preparing for market volatility.

In particular, the noticeable performance improvement of its subordinate companies strongly supports the parent company's IPO momentum. Modilcar Co., Ltd. (formerly Allcar Communication), a subsidiary in which Autohands holds a 76.73% stake, succeeded in a perfect turnaround to surplus, recording sales of about 20.8 billion won and a net profit of about 1.8 billion won in 2025. As Modilcar, which provides real-time new car quote comparison services, proves its own cash-generating ability, it is greatly contributing to the rise in Autohands' company-wide corporate value.

'From Sales to Rental'... Qualitative Transformation of the Business Model

The most prominent point in Autohands' moves is that it has achieved a qualitative transformation of its business model by launching into the vehicle rental business (rental cars) in earnest, moving beyond simple used car trading (product sales).

Looking at the scale of 'rental business vehicles,' the asset, which was at the level of about 1.7 billion won in 2023, explosively increased to about 7.1 billion won in 2024 and about 19.4 billion won in 2025. Aggressive asset investment directly led to revenue diversification. Vehicle rental sales, which were merely about 48 million won in 2023, grew rapidly to 1.1 billion won in 2024 and 4 billion won in 2025. The rental car business has begun to fully play the role of a continuous and stable cash cow beyond one-off sales.

In the used car distribution sector, its core business, it employed a preemptive and aggressive inventory purchasing strategy to increase market dominance. The size of inventory assets expanded significantly from 4.1 billion won in 2021 to 8.8 billion won in 2023, and about 24 billion won in 2025.

Securing such abundant inventory directly led to an increase in sales. Autohands' product sales grew by a whopping eight times or more from 23.6 billion won in 2021 to 196.2 billion won in 2025, becoming the direct driving force that led the company's explosive quantum jump.

[Source: Auto Inside Homepage]

However, the gap in cash flow resulting from aggressive asset acquisition is a point that needs to be examined. Although Autohands is generating excellent profits with a net profit of about 6 billion won in 2025, its operating cash flow during the same period recorded a deficit of -10.4 billion won.

This is because the company preemptively invested more funds into purchasing inventory (used cars) and securing vehicle assets for the rental car business for future top-line expansion than the cash it earned. While this is a phenomenon commonly seen in high-growth companies, the key is how quickly these inventories and assets can be recovered as cash in the future.

The Used Car Market in a Warring States Period, Autohands' Task Ahead of IPO

Currently, the domestic used car distribution market is truly facing a period of upheaval. Encar.com, which is vying for the top spot in the industry, and Hey Dealer, a representative used car trading startup, are rushing to push for IPOs, and a fierce battle for survival is unfolding as even finished vehicle manufacturers enter the used car market in earnest.

Industry officials predict that although Autohands is moving to enter the stock market armed with a business portfolio covering the entire used car value chain and solid performance, the key to the success of its public offering will be how well it can persuade investors of its differentiated vision and corporate value (valuation) amidst intensifying competition. Attention is focused on Autohands' future moves to see if it can cross the threshold of going public by translating its aggressive asset investments into successful cash flow generation.