Welcome to the Autohome 2020 Investor Day. We would like to thank all the analysts and also the media and all the friends online and offline supporters. We're going to have a sharing for two hours and about one hour of Q&A. We will suggest that we are going to start the Q&A at 5:00 P.M. Beijing time, so maybe you can dive in to queue first, and we are going to prioritize according to the queue online. You can also send your questions to the email box that we have shown here. Next, let's welcome the CFO, Mr. Jun Zou, to share with us about the investment highlights and outlook.
Very congested. Welcome to join us on this special occasion, which is the second U.S. Open Day for Autohome. Joining me today, there is actually our Chairman and CEO, Mr. Min Lu, and our Co-President, Mr. Haifeng Shao, and Co-President, Mr. Jingyu Zhang. Of course, later Ping An's Co-CEO, Jessica, will also join us. Now, if you who joined us last year remember we had our first U.S. Open Day in our history in Beijing, which was a cold winter day and with a cold auto market and a cold capital market for auto business as well. I said last year that hopefully next year when we rejoin together, we'll have a much warmer market.
Now, I guess actually, indeed, we are now here in Shenzhen having our second conference, and it's a much warmer day, and we have a much warmer auto market and a much warmer capital market for auto business as well. And again, thank you for all your support in the last year. And without your help and support, we won't be here. We won't see a strong growth this year despite the headwinds that we are facing in the auto market. Okay, with that, I will start our presentation, and I will highlight a little bit about actually the auto market today and then what we are doing now. So. Okay, let's start with the market. A little bit about who we are, of course, and for those that know us well, please bear with me.
So we are actually, of course, the largest online auto platform in the world, and we have the largest mobile DAU, which we're growing 25% last year. And we are working with 90% plus of the automakers and dealers in China. And despite, let's say, the declining auto market last year, we saw our revenue growing at around 16% last year. So can someone pointing to me where is the camera so that I won't look blindly? It's over there, right? Sorry. Okay. All right. And so we are also glad to show a very good profitability despite, let's say, we enhanced our effort to help our dealer clients and OEM customers by not increasing our price to them last year. And we're also building our cash reserve while we continue to actually invest in actually new businesses and in new markets.
Now, with that, of course, on the upper left corner, we saw that the headwinds I mentioned in the last few years in the Chinese auto market, we have seen a three-year declining trend, but luckily, starting from May this year, we saw actually the auto market start to recover, and the trend has continued until today, and then, of course, based on the industry expectation, we do believe the market will start to grow next year and continue to maybe 2025- 2030. Now, why we believe there is still such headroom here or long runway for us to run. Just take a look at the upper right hand. There is an auto penetration analysis. China has only 170 cars per 1,000 people versus 200 plus in Thailand, 400 plus in South Korea and Malaysia, not to say the developed nations.
While the Chinese economy is still the fastest growing in the world, we believe we will catch up, and that's for new car. As for used car, on the lower left side, we saw that Chinese used car sales last year was only around one-fifth or one-fourth of that of the United States. And in terms of auto financing and insurance penetration, we also see that the U.S. penetration level is more than two times bigger than ours, but I guess we are all catching up in those different areas. Now, Autohome has gone a long way, I guess, during the last several years to actually build up an auto ecosystem. Started in 2007, actually before 2016, we were just a vertical media in the auto-related sector, which is our 1.0 age.
Now, starting from 2017, we are evolving into an auto ecosystem where we integrate auto content, auto financing, auto transaction, and auto lifestyle on top of a big data platform. Now, that also expanded our overall addressable markets, which is around RMB 150 billion. Now, starting from 2018, we evolved into a big data-based, actually SaaS and cloud platform to help our clients. And we also have a much bigger TAM. And now, after actually a careful review of our strategy together with Ping An as well as internally, we are building actually a much more expanded auto ecosystem, which we call SkyNet. And so on Sky, we now have, of course, all the contents to help users to review a car, buy a car, sell a car, and then use a car.
We have the largest number of mobile users in the world in the vertical. And then on the ground, we are building up a SaaS platform to enable business clients such as OEMs and dealers where they can address the needs and concerns of the consumers in China and hopefully, of course, in the future in the world. Okay. So let's start from our traditional business. What can we see from traditional business? So a lot of people believe that we now have reached this glass ceiling or the ceiling in our traditional business. Yes and no. So talking about actually what kind of budget we have from OEM and dealers. On average, let's say a Chinese OEM will spend around 10% of new vehicle sales on sales and marketing. Of course, that includes a lot of things such as, let's say, advertisement and lead generation.
That is actually, of course, number one on the left circle, the circle on the left side. And this is our traditional addressable market. And the rest are actually like market research, branding, sales rebate, and commissions for dealers, so on and so forth. And we did not have products addressed to those markets in the past. But now, with our much expanded portfolio, we now have products, which we'll talk about later. And also, my colleagues will address that in much more depth as well. And now, even about CNY 80 billion traditional budget that we address, let's say, in leads and product advertisement, there are also expanded, let's say, market for us as well. First, there is an offline to online transition that has been continuing for many years, and we believe this year the online portion expanded to above 50%.
Now, even within the online portion, I think we're expanding our leadership. Autohome's leadership versus other players are actually growing bigger. And in particular, in today's market, most OEMs and dealers are emphasizing performance-based advertisement, which we are the best. And thanks for our big data capability and target marketing capabilities. Now, here, so there are, let's say, a little bit of the expanded market we're talking about. New vehicle marketing, now we are addressing actually CNY 280 billion with our traditional products of media and then lead generation. Now, we're also actually entering into the other CNY 200 billion markets with our SaaS product, with our brand advertisement products. And then on top of that, with our intelligent R&D product, which is a member of the SaaS product family, we are now helping OEMs in terms of their R&D.
And then with the C2B2C transaction platform we're building, we are now gradually becoming actually the largest online transaction platform for used car business in China as well. Auto financing, leveraging our strong relationship with our big shareholder, Ping An, we are also building a third-party F&I financing platform, which helps auto users actually to insure their auto and then to finance their auto. Of course, there is also a very big aftermarket, let's say, services that we can address, which we have spent years in terms of internal R&D, and we will monetize that very soon. Okay. So with all that, there is a huge market potential, and we believe we are well positioned to capture all those market opportunities. So what we can see on this page is actually that we are strengthening our leadership in actually the traditional businesses.
Our traditional business revenue compared to the closest competitor actually are growing. So you can see starting from the beginning of 2017, our traditional business revenue is only 1.4 times of the other player. And now, by 2020, our size are about 1.7 to 1.9 times of theirs. So we are actually getting wallet share from OEMs. And then on the right lower corner, what we saw is that we are also growing our new businesses in a very aggressive way. And the percentage of new business as a percent of total revenue has been growing to 24% actually in the third quarter of this year. Now, how do we actually strengthen our leadership in traditional business? Our entry barrier is basically the content, the largest barrier that we have.
We have a vast sort of array of different contents to help users review a car, buy a car, sell a car, and use a car, and that includes OGC, UGC, PGC content, the largest and most comprehensive product library in the world that includes pioneering AR, VR product models, and also there is a social forum. There is a tool to help users select cars. And there is also a lot of enriched content in terms of how to use a car in a functional way or in a way for fun. So actually now we reviewed the number of DAU we have on the mobile side, which is 69 million in the month of September, and that number has grown to 43 million actually in the month of October, which actually strengthened our leadership.
The time spent we have been able to keep attracting our users and spend 20-30 minutes a day. Now, with the very rich content portfolio and the largest user base in China and in the world, we are able to roll out actually the strongest performance-based vertical platform. So we target marketing to our actually selected customers enabled by big data. So we also actually rolled out a lot of new forms of content such as live broadcasting. We also integrated with traditional media such as TV stations. We actually start to merge offline and online advertisement activity together, which is OMO. So on top of, of course, advertisement platform, we also boast one of the strongest lead platforms in China. Actually, the probably strongest. We generate the largest number of leads in China, which is 110 million last year.
And the majority of the leads that we actually send to our clients are organic leads. And those leads have the highest conversion ratio in China with the lowest, let's say, sales conversion cost. Now, on top of our traditional business, we are also expanding into new business areas such as online virtual auto shows, live broadcasts. And we're also rolling out actually an online e-commerce platform that is enabled with our SaaS capability. Overall, now we are working with actually 90% plus of our dealer clients in terms of our data products, and our pool will continue to grow. So actually, our Ping An's Co-CEO, Jessica, just joined us. Thank you for coming to show your support. All right. So now talking about our data solution. Now, as we mentioned, we have the largest, let's say, user base in the world in auto vertical.
And then we have developed a proprietary data model, UVMB model, that actually dissects the user base into 40-50,000 mini groups. And we also actually break down the sort of barrier between different departments and groups so that we have a unified data farm to share data. And Autohome also spares no effort in R&D with 40% of our staff in R&D and 15% of our costs in R&D as well. And on the right-hand side, you can see that our data products are growing quickly. So in the first three quarters in the year, we already have achieved a bigger revenue size than that of the entire last year. And we are able to also serve actually more dealer clients in terms of SaaS data products in the first three quarters than the entire last year.
And in terms of OEM, and what you can see, we have been able to help more than 100 auto models in the first three quarters, which is around 60% more than that of the entire last year. And with that, we are happy to say that we have a complete end-to-end SaaS product to help OEM and dealer clients from R&D to content to leads to store visit to sales and then to after-sales. And we have around 10 products within the product suite. And we've been able to help 38 OEMs and 17,000 plus dealers in the first three quarters in the year. And we also see a lot of repeating customers to come back to our SaaS products. And in the first three quarters, our data product has been increasing at a rate around 65%, contributing to 12% of our total revenue.
Now, the next new business line that we talk about is actually used car. We are very proud to have a unique asset-light closed-loop transaction platform on top of the lead platform that we have in-house. Now, thanks for the sort of investment in TTP Inc. Now, we are actually the largest auction/transaction platform online in China for used cars. We also are actually the largest platform in terms of seller leads and buyer leads in China. And as I mentioned, we are asset-light, and we don't have inventory, so we don't do first-party financing. And we don't have like 10,000 people offline to do sales as well, which makes us the healthiest business model in China. And the next new business line that we have, again, as I mentioned, leveraging, let's say, our strong relationship with Ping An Group, auto financing.
We are now building actually auto financing and insurance product portfolio to address the needs for OEMs, dealers, and car sellers and buyers throughout the entire value chain. And that business is also growing healthily. And again, this is an asset-light model, third-party model. So we don't really have any balance sheet risk. And unlike any other online vertical platforms in China, this business is growing also in a very healthy pace. Well, let's say the most important part for me as a CFO, of course, is the financials. I'm very proud to say that in the last several years, we are able to deliver a very good product margin profile. And we're able to continue to grow our profitability. And on the right-hand side, you can see the net income that we generate compared to other players and the net margin that we generate compared to other players.
And also, of course, how we can do that. Of course, we continue to actually exert strong cost control for traditional business and do tax planning to save money. And with the sort of cost control and the money saving, we are able to deliver a better margin as well as to support the auto ecosystem and the development of new business as well. Now, as that, you can see that in the first three quarters of this year, we are able to grow our top line by 1.4% despite a 12% decline in the Chinese auto market. And while we actually did not increase price for our dealer clients, and we also try to increase offline spending on activities to help OEM clients as well, we're still able to actually increase our net profit by 7.5% and increase our margin by 2.3% as well.
Now, as I mentioned, even though we're continuing to invest in new products, new businesses, new markets, and we're still able to build our cash balance, and last year, we decided to start to pay back our shareholders by a dividend policy with a payout ratio of about 20%. Now, that being said, of course, let me address a little bit about our future. I guess my colleagues, two co-presidents, will address our new initiatives in more details, but on a high level, what Autohome is actually building is an auto ecosystem with a multi-trillion market, and on the left-hand side, you can see we have a complete portfolio of content to help consumers to review a car, buy a car, sell a car, and use a car.
Now, with the sort of loyal user base that we have, we are able to build actually a complete database for their behavior throughout the entire auto value chain. And then we're able to actually help our clients, which are the B-side clients, basically throughout their auto manufacturing marketing sales process and until the aftermarket sales. Now, with that, of course, we not only have the strongest content portfolio to attract our users. We also have a very strong product portfolio, as I addressed in previous pages, to help our business clients. And so we are also sort of being enabled by a very strong sort of centralized platform of products. And then we're able to really help both ends. Let's say the most updated strategy or the 4.0 strategy that we are now boasting is actually what we call a SkyNet strategy.
We have the content portfolio online to attract users. And then on the ground, we have almost 100 OEMs, 27,000 outside dealers, 30,000 used car dealers, and a number of after-car service shops, which are serving actually our ground network. And hopefully, of course, with success in China, we will be able to expand and copy the model globally as well. And that's something we're doing. And hopefully, we can let you know more details next year in our next open day. With that, I guess I conclude my investment highlights. And then our Co-President, Mr. Haifeng Shao, will come to address actually our dealer SaaS product and our strategy in that end. Ms. Shao, please.
Thank you, Mr. Zhou, for the wonderful presentation. Next, please allow me to introduce to you the senior management here today with us: Co-CEO, Madam Chen Xinying from Ping An Group, Mr. Min Lu, the Chairman and CEO of Autohome, Mr. Haifeng Shao, the Co-President of Autohome, and Mr. Jingyu Zhang, the Co-President of Autohome, Jun Zou, CFO of Autohome.
Okay. Now, let's welcome the Co-President of Autohome, Mr. Haifeng Shao, to give us a presentation. Thank you.
Hello. Dear distinguished investors. Dear distinguished Mr. Chen, Mr. Lu. Now, as a second presenter, I felt a lot of pressure. Yeah, because I do not speak fluent English as Mr. Jun Zou. But I do have a small target. I have to speak better Chinese than Mr. Jun ou. It's my great pleasure to be here to share with you our future strategy about the dealer SaaS business of Autohome. First of all, let's look at the market for the dealers. According to our survey, for the dealers, I think the whole market is a labor-intensive market, especially for the new car sales.
Their labor cost is about CNY 168 billion. Now, CNY 168 billion, what does that mean? If you look at the new car total sales, it's about 5%, 5% of the total sales of the new cars. So for this 5%, if you look at the OEM, they offer rebate and refund to the dealers. It accounts for 40% of the total rebate. So which would be a very heavy cost burden for the dealers? When the market goes down and the growth becomes decelerated momentum, I believe that next year, of course, the number will grow. But the labor cost plus the dealer's rental cost puts a lot of pressure on the dealer side. Under such scenario, we believe that ever since 2020 and to 2025, for the dealers, I believe they would use AI, SaaS.
They would leverage the technologies to ease the cost burden and to enhance the working efficiency. So I believe that the whole market can get into CNY 20 billion in 2025. This year, it's only half. It's only CNY 1 billion. But in 2025, it will grow into a CNY 20-billion market. Who are the major players? There are three categories. One is BAT. Another category is vertical media. And thirdly, the startup companies. For BAT, they get into this market back in 2018. They do have their advantages as well as disadvantages. For example, they don't have enough vertical industry data. They don't have enough data. And secondly, they are not so familiar with the scenario of the vertical business. But for the vertical media, for example, our peers, if you look at our peers compared with Autohome, they don't have such a large volume of data as us.
As for startups, of course, they are going to be less sophisticated on data and services and scenarios. Next, we can have a look at the needs of the dealers on SaaS. When we look at the full scenarios of the dealers, we can identify eight core pain points. And for these core pain points, maybe I may not elaborate all of them, but I will focus on two of them first. Its DCC turnover is very high. It's over 50%. Lack of capabilities and reduced the success invitation to the stores. And maybe you will know about DCC a lot. It's actually quite labor-intensive and do not have very high income and very low satisfaction on their jobs. So it will cause very high churn on these positions.
When we look at the single store DCC, I think the dealers will get into a bad spiral that will start from the recruitment training to they leave the stores because they cannot satisfy them the training of the DCC. If they can enhance the invitation to the store and reduce the DCC menu costs, then in this way, the dealers will see a very high increase in their revenue and profitability. Next would be the menu activation of the failed leads, which has been very big volume and requires very big investment. When they get 100 leads, maybe only 15 of them have been invited to the stores and 85 of them have failed. And among these 15 leads, the average transaction is just three of these leads that have reached transaction. So 12 of them have been excluded from transaction.
The OEM and dealers have paid to buy these leads, and 97% of them have failed, so whether they are the real failure, whether the users still own the Autohome platform and continue to review the cars, everyone has this question mark in their mind, and we also know about one principle. The cost of reactivating the failed leads will be much lower than utilizing a new lead. We are utilizing the manual method to reactivate it, or we should use the intelligent or automated way to reactivate it, use the robot to activate the lead. I think this will be one of the choices of all the dealers. This is the eight core pain points of dealers, and Autohome, we have provided three directions of solutions on SaaS. First is the intelligent robot, which can help us to reduce the manual cost.
Second would be AI-enabled by utilizing the synergy between the people and the machine to increase the conversion. The third is actually the intelligent management. We will combine the OEM, the supervisors, DCC, and dealers and consultants, etc., to provide the process management, sales management online with the full process. In this way, we are able to increase the efficiency of the dealers. Autohome also built up the structure for them, and we can divide it by one, two, three. And one means one platform. On this platform, we have four types of capabilities. First is the data platform provided by Autohome. The second would be the AI platform. The third would be HR-wide capability for communications. And the fourth would be the support platform. And the second would be OneCloud by utilizing SaaS Cloud to serve and to provide output to the dealers. And second, we have two approaches.
And we have capability output, API output. And another approach, the first API is for the OEM and the dealers. And the second approach would be production and to commercialize the product. And we also have dealer groups, OEMs, and also the single source. After we go through the structure, we can have a look at the product pipeline, the product metrics of our SaaS structure. In these metrics, you can identify one feature. It has covered the full scenarios from purchasing to using cars and also covered those prospects and existing customers and users of the dealers. Under each scenario, we have divided into six modules: the immediate conversion, management improvement, private and the public domain redirection, and the services delivery. We have 13 products on it. You can call it products or capability that we provide. We have 13 capabilities to provide to dealers and OEMs.
We have utilized three years to provide this cloud platform for our dealers, and we have a certain milestone and achieved great results so far. Maybe I can tell you some data. First is the leads connection rate. We can help the dealers to increase about 30.8% of the leads pickup rate, and second would be the invitation success rate can be increased by 24.5%, and the third would be the failed leads reactivation rate. This year, we have provided about 1.568 million sales chance for the industries. So that's why we can work and cooperate with 80% of brands and also working with 17,000 dealers, and this 17,000 dealers have enjoyed the services and capabilities that we provided, and there is another data, HRYG communication platform. Every day, we have provided about 457,000 minutes of services on this communication platform.
All of these learnings and experience, of course, the trend will be endless. We can first talk about experience and learnings. I think it has to come from various core defenses of our business. First, Autohome has massive data after years of operation. Second, Autohome also has built up a group of sector experts. President also talked about it. Maybe I can emphasize that we have about 400 big data scientists in Autohome. And thirdly, we also provide some core technology, including the ASR, the NLP, and knowledge map and voice integration, of course, thanks to the support by the Ping An Group. And fourth would be the material product metrics and our experience on the sophisticated products. We have spent three years on polishing our products in the market.
I'm going to share a video with you and also a clip of audio with you so that you will gain a better understanding of SaaS and how we will use it in the real scenarios and help our dealers. Just one click, please. How about Autohome and service provided? And you seem to pay attention to our content. Do you really want to buy it? Do you have the Audi model? And we still have the inventory for the car. Maybe we can tell you about the campaign for it. What is the lower cost? Our OEM is now working on the marketing across the country, and you just have one chance to purchase. Would you like to come to the store to know more about it? Where is the store?
I'm the headquarters customer service, and maybe I can contact you, contact the purchase source to contact with you. So what would be the final price of it? Because I'm working on the sales. And also, the stores will provide a unique price for our customers. And we also have the zero down payment for the car purchase. Maybe I can ask our professional sales to contact with you. I'm still at work maybe later, and maybe you can pass the application of our dealer sales. Later, our colleagues will contact with you. So I hope you have a nice day. Thank you. This audio is how our robot helps the consultant to invite the customers to the stores. And this is a real scenario. And you can see that after you experience this scenario, you will know we are trying to personalize the scripts provided by the robots.
During this process, with the clients, with the customers, we actually have the knowledge map to support it. The third point, the campaigns provided by OEMs and the dealers are also put on the platform so that it's easily fetched by the robots. This will be one of the scenarios provided by the smart robot. Next, I'm going to have a video. Maybe the smart DCC cannot be played here on this platform, but I can introduce it to you. The smart DCC, we actually provide the online experts of the industry to support each of the consultants for DCC so that it can help them to invite customers to the stores. How can we achieve this? One way, there are technologies behind it. For example, the speech recognition technology and also speech conversion into text.
And the third technology is we have the knowledge pool. We can crawl the knowledge in that pool. And the number four technology is automated content generation. Number five, we have the pop-up window. The pop-up window can help to support DCC in real time. So I think this new model actually had helped the stores to get rid of the trouble of recruiting people, but people would leave. They have to recruit again, and they have a high turnover rate. In this way, we can help every new employee become the true expert in the DCC. Okay, that's all for my presentation. Thank you very much. Thank you.
Okay, thank you, Mr. Shao. Now let's welcome Mr. Jingyu Zhang, the co-president of Autohome, to continue the presentation.
Dear distinguished investors, good afternoon. So today, I want to talk about the data product and the demo of the Industrial Internet.
What have we achieved in the data product? Today, the topic is Industrial Internet is the best choice for industrial digitalization. Now, let's look at the whole market. We have the five-pillar business from the car purchase to the car sales to the car service, and each of them exceeds CNY 600 billion. We have different stakeholders: the OEMs, the dealers, the leasing company, the insurance company, financial institution. They all get into this whole market. The user will experience the whole value chain. The car itself will also go through the whole value chain. People and the car on the data side already converged, but on the application side, there are a lot of silos. If we can achieve to break the silos in this value chain, I think the customer experience would be greatly enhanced.
Now, let's look at the core OEM, which is a key player for the luxury brands. Top five market share is about 80%. But for the non-luxury brand, we believe the domestic top brand and the JV would compete very severely in this market. For the top five, ever since 2015, the concentration rate is about 59%. Now it's 75%. This is a proportion of the non-luxury brand OEM sales volume. So we do see the competition is getting more and more severe. And everybody had a consensus that for OEMs in the future, their strategy needs to be quickly flexible and agile to the competition. So you have to understand the customers more. You have to have in-depth knowledge about the habits and the preference of your clients. And also, for a car, you cannot have one model fit all strategy.
You have to have classification and segmentation and personalized needs to meet with the personalized needs of your customers. After we have the customization, we would help to design the product to solve the true pain points of the users. And lastly, we should connect the OEM with the service provider for the car users. So if the OEMs can make the transformation, I believe their business model will totally change. To achieve this, we believe that without the digitalization solution, this is not achievable. Now, the whole industry is trying to go for the Industrial Internet and the digitalization, but they are facing with a lot of challenges. For example, the data, if they want to have the independent data, if they want to have the convergence of the data, they have to connect the data together.
But currently, the data are independent, and the models and applications between companies, they are not interconnected. So you can see these are all the silos. Secondly, everybody talks about SaaS because for the OEMs, they're facing with a lot of corporate needs. And even within the company, different divisions have their special needs. If you want to build a standardized platform, how can you solve the problem? So we believe the big data application needs to run through internal departments horizontally and industrial alliance vertically. And the huge human resource and the capital are required while enterprise upgrades to internet operation identify independently. And you have to invest heavily in the talent, in the infrastructure, on the internet. So the investment is huge. On the AI side, we are also facing with some challenges.
If you digitize the production and operation, but if the decision was not digitalized, then that will not be a unified solution, but if the operation and decision-making has been digitalized, but the production is not digitalized, then that's also a big trouble, so we have to achieve a unified solution for digitalization, so actually, our value is to create a model which is a three-plus-three model. We call it all CI for industry. It is basically where we have the public cloud, private cloud, and hybrid cloud, the DMS and the CRM. On the second layer, they have the exchange layer, which is like the routers in the communication sector. SaaS is like the core, and all the interface will be used to exchange the data, and the top is the application side. We have the big data, AI, and SaaS.
These three are necessity, and they have to be unified. We have a few opinions. First of all, in big data, we are not growing the data the larger, the better. We are actually trying to achieve the valuable data for full touch points. We have to apply the data and use the data. Secondly, we used to have only online data. We don't have offline data, but now we believe that online and offline data need to be connected. So we need to have the complementation of all the data, and we have to have the application data. On the AI side, AI is not to show your algorithm. The purpose is for operating. We have two changes to make. We have to have real-time calculation attribution. So in this way, it's real-time, but not post-events.
Secondly, the big data and AI, they have to have predictive decision support system. If you want to win the time, win the window opportunity, you have to be predictive. So SaaS is more like the industry integration, and it will form as a platform which can help to achieve customization as well as standardization, which can help to achieve a total solution approach. So that is the industrial internet we're talking about. Now, let's do a more detailed analysis. So why we have the full touch points from the single points? In the past, we just do general marketing. But now, we have to define the user into different layers.
For example, car purchasing, we divide them into nine steps: from the research to attraction to inquiry to intention to the confirm to the decision, then to the purchase behavior, and then to the service experience, and then lastly, recommendation. So these are the full cycle for people to purchase a car. This covers all the scenarios. So the first thing we need to do is starting from research. We also have to get through what kind of touch points are there. We have listed that 28 touch points are there during the whole process. All the blue segments, we can obtain data from offline. The white ones are from online. We have to turn the white box into blue box. But how? That is to say, for the O2O and offline to online need to be OMO.
The basic is for the online data, they should be guiding the offline behavior from the customer's reflection to form new source of data, then convergent with online data. Then that would, in the cycle, provide feedback to the offline. So this would be a full cycle. Another thing I want to mention is for the big data, we have a lot of data tables and analysis. But in the future or next generation, the big data analysis, I believe the key is you need to combine with the industry to provide application models. As Mr. Shao said, based on the OEMs, so from their product profiling, their reputation monitoring, the branding, we provide point-to-point scenario analysis. For the dealer, from the call-out to DCC to the sales, it's a Smart Series we have. And we have the smart sharing system, which is for the post-sale service aftermarket.
So we should combine this together to create the scenario-based application. And in this way, we can validate the value of the big data. That is the key part of the application of the big data. Next, in the AI, how can AI help the OEMs to make real-time decision-making? The traditional AI is you connect the data. After you get the data, then you do the calculation, and you do the analysis, and finally, you come up with a finding. And then you provide feedback. But now, we do real-time calculation. So during the process, anything occurred should be calculated real-time. After real-time calculation, we would have attribution, and we would prevent the bad outcome to achieve. So this would be a real-time calculation and real-time interpretation. For the OEMs that if Autohome can help me to get two-month window time, I will be the winner.
So, AI can be predictive decision support, visual data analysis. AI is to make prediction and to provide the visual analysis. So, in the long term of the big data and for all those decisions and methodology and the feedback from the customers across all the touch points, if we can build up the system of all the knowledge, I think it will be beneficial to all the OEMs and dealers. And it will have great value to the whole industry as well. That's why we said that SaaS is actually turning the traditional IT to the internet-based operations. And I would like to explain about it first. You can see there is the Smart Middle Desk. The Middle Desk is actually to separate all those business scenarios and to build up a unified smart platform. And this Middle Desk must be able to iterative and generally applicable.
Originally, we developed the SaaS, but we believe that later digitalization is not going to be developed, but to be configured. And you can see there are nine steps that we have summarized here. So first, we can have a look at our position. What is the scenario? We should look at a scenario and also what is the process under this scenario? What would be the touch points? For example, what would be the tables or the charts that they're going to use? And all of this will go into utilize the configuration method for all those sophisticated processes. And lastly, we are going to achieve the results that first is for the AI management, AI's operations, and to utilize the AI and the process of it. And next will be the AI management. We have the internal system that is the early recognition of those risks.
And during this process, we will finally do the analysis to know what we should do. And then we can take the early step to take advantages in the market. And we have explained the planning of the data system and Autohome. And next, we are going to look at the cooperation between the Autohome and the whole industry and what kind of partnership that we can build. We have separated clients into several types across different maturity. First is cooperation on different points. If they just started to use our data products, and we will recommend the point-based. For example, we can launch a certain product, a single project to do the call-out, for example.
And then after they have verified the enabling power of the Autohome products, then we are able to work on the line-based provision, for example, for the whole lineup of the products of the models. Then we are able to provide a smart portfolio for the whole life cycle of the cars. And that is focusing on the lineup of the cars. The third would be more network-based services. And after we are able to verify the point-based and line-based, then we are going to provide the network-based services. We call it the STORM. It means that we are going to focus on the marketing of all the lineup in the OEM. And we can provide the packaged solutions for it, for all the products of the OEM. And next would be the customized solutions.
We are going to communicate with the clients face-to-face to confirm their strategy, the system, and also all the smart solutions that they want, that will need and involve deep cooperation with all the OEMs. As for the STORMs, we have been working with both clients. As for the dimensional one, we have exceeded all those primary expectations for the last part. They have achieved about 70% of their leads. The lowest one is 25% of leads achieved. As for the dimensional cooperation, that is combining the SaaS system and the meet desk. That will become a kind of system-based cooperation. In this way, the Autohome are able to work with the clients in a dimensional way. We're already working on the system-based cooperation, utilizing the SaaS as a pilot.
Now the pilot is going to roll out, to be rolled out in 2021. We can first look at the core part of it. We are going to focus on the priority and the breakthrough point of it. Next would be the co-creation of products. The product concept is not just reliant on the Autohome. The Autohome will just provide the technology and product support. The OEM will provide the revolution, marketing revolution, and also the process for change as well. We will include all of these factors in the creating of products. After that, we're going to explore more applications to cover the holistic application of these solutions. After that, after we have finished the cooperation or have completed the pilots, then we are going to roll out in a more holistic way.
And we have made a simple introduction about our products online, but it's all very conceptual. I hope that by watching at our live system here, maybe you can gain more understanding about it. First of all, I would like to introduce the smart capabilities actually helping the marketing to work on the digitalized marketing. Maybe we can have a look at the online system for marketing. You can see here that this is our marketing dashboard at backend. It means that all those marketing is running and monitored in our backend. And you can see here, for example, I will take one client as an example. Please click on the Xuanyi. This car model, it will be the first thing. The first point is that we will target at the group, target at the segments. For this segment, we have about 4,000,000.
And we have divided into the 170 sectors. And after we have segmented into 170 parts, and we are going to do some research on the competitors. There are three major competitors of it. So what would be the selling point of each of the competitors? And what would be the breakthrough point for it? For example, the advantages of it would be the power of the engine and how about the others? Then by comparing all of this, we are going to develop a strategy for it and also tailor to the targeted segments. And then we are going to develop the whole articles about it. And this kind of magic, it's going to automatically produce all the long video, short video, long articles, and short articles. It's all done automatically. And also, we are going to provide some creativeness to it.
For example, now, all the titles and also the pictures are able to combine with AI and utilize the AI capabilities and all the creativeness. And the creations are actually based on the system. And as for the placement, the smart placement, during the placement, we are going to have daily monitoring of all those placements. The original blue one, for example, the orange one is the expectation line. And also the blue one is our real-time line. And it also would be the result overview. Maybe you can click on the result overview so that we can have a look at it. It's the result overview, performance overview here. And what does it mean by this overview? It means that this is the report online for all the placements that we have done online. Then what would be the expectation or the targets of it?
What would be the hot articles in this field? What is the market share? Also, what would be the relation of this market share against our competitors if we do this placement? Also all the results, CTR and PV of all of these articles and last client's opinions on our models or experience of the models. Would it change before and after the placement? Next, I would like to introduce the full domain strategy that we provided to help the OEM. This is our capability. It means that we work with the OEM to work on all the data products to provide a total solution for the OEM to complete their system. I'm going to make a brief introduction to you. It's separated into several modules. The first system is to do the decision. The second would be definition of the products.
The third is marketing strategy, and the fourth would be the management of dealers. We are going to go through it one by one. For example, if we can see there is a target segment, then we can circle this segment. Then we will know what would be the target segment, how many people in this field, and what would be the expected growth rate of this segment in 2021 and 2022, what would be the overall trend of it. After we identify the markets, we are going to have a look at the layout, landscape of the brands in this segment. Who is playing in this sector, and what would be our position? Also, what would be our position according to our word of mouth or reputation? We are in the fourth quadrant. Now we need to improve our reputation. We have 15 factors on it.
So how can we improve these 15 factors? Next. And after I understand this or I already know the overall situation of the system, then I will benchmark with the industry so that I can identify some actions that I should take. Next would be the sentiment. And we also need to look at the feedback of all the users on our products. What would be the positive feedback? What would be the negative feedback? If I find that the feedback from our customers in the market has a peak, then we will look at the positive feedback system and also for the negative as well. So then we will also look at the click rates and also the rating of all the users so that I can have a better view of the customer's feedback on our products.
After we identify the target sectors, then we will target at our segment customers. So who would be the right targeted customer segment? And if we are focusing on the middle class and who have the monthly income of about CNY 230,000, living in the tier 2 cities, paying attention to the rational consumption. So what will be the trends of these targets? And I found that for this group of people, they are going to change along with time. They are going to pursue the different things maybe along with the time change. Then it will finally generate a profile, the portrait of the customers. What would be the current systems? Then we will finalize a system here. And this will become the profile of the customers. Next would be the interior, exterior trends, including the equipment or the configurations.
What would be the feedback on all the equipment on the markets? What would be the configuration needs of our customers? Maybe you are confused about it. Why would Autohome know about the needs of the customers? It's because actually when the customers give feedback on the forum, then they will have a true sentiment: "Well, this function is really bad. If we can add another thing to it, then that would be great." So this would be the needs of the configurations. After we have analyzed all the text content of all the feedback on the forum, then we are able to understand all the navigation or the other type of equipment. As for the selling points, I'm not going to give more details about it. So we are going to have a look at those suggestions on it. Next would be the pricing suggestions.
So as for the pricing, first of all, we should know about the middle SUV, the average price of the medium SUV. Then next would be the price of it. According to the configuration system, the expected price level of it, then we are going to provide a pricing support to it. And after we have confirmed about products, then the digitalization capability should do one thing for them. If the customers need to finish about 100,000 sales targets, then we may be able to complete part of it on the Autohome. Then according to our traditional calculation, we will know about the conversion rate of it and what we should pay attention to. After we make the distinction, then we would understand that the whole year's marketing can be divided into a few steps.
For example, the smart go-to-market and also the Smart DCC would be four months later, and then we would host some activities with the OEMs, so in this way, the marketing activities will be scheduled, and based on our data marketing, we would understand what would be the total outcome. Now, tell me about the upgrading of the product. We are hoping the OEMs to do a few things. Firstly, to see what are the decision-making processes for the customers. What are their key points? And are they satisfied with you? What are the complaints? Compare with competitors. What's advantage and disadvantages? And what are the expectations of the customers? After you make this investment, you understand the customer's expectation, then you would understand how to improve your product.
For the dealers, for the dealer SaaS system, from the leads to the connection to the arrival rate to the scheduled arrivals, so this would be the sales funnel, and this would be a whole systematic approach. Okay, so that is a model for the Industrial Internet. Next, let's talk about smart middle end. What is a middle platform? That is a non-business-related online system, including process engine, the talking points, so based on the business process, we can make a whole process, so you can drag and drop, and each of the points, you can set up a pop-up window. For the middle office, they can connect PC with cell phone, with pad, and the mobile side, they can automatically fit into different devices, so they can fully automate it to fit into each of the different devices.
The talking points, the matching of the pages, the big screen designing. This would be the content for our intelligent middle end or middle platform. Now, let me show you a short video of how we use this middle office to set up the whole system, so we have the AI management. We have the four steps. You can see that you can be a systematic approach based on the four steps. We have the DCC. The first one is DCC Workstation and the customer profiling and the Auto Dashboard and also predictive pre-warning signal. This is very quick steps, and it's zero code writing required, so that is the exact example we use two weeks to help the customers to do the specific designing. The OEMs believe this middle office is very helpful. It can help them to quickly resolve the problems and the challenges of the digital teams.
It can address the key pain points. You can just drag and drop because the KPIs usually change. And then you can easily set up your own system. That would be our three first systems. So that is a rules engine based on different management rules. You can add on the whole system. Okay. That is all for my presentation in terms of digitalization and industrial internet exploration. We are on the road. We are on the way. We need to be fully and in-depthly combined with the industry. Thank you.
Thank you. Thank you for the management wonderful presentation and sharing. I believe that investors would know better about our business model and our future strategy. Now, let's take a 10-minute break. And let's get back to 4:30 P.M. And then we will start the Q&A at 4:30 P.M. Now, see you later. Okay. Welcome back. Let's continue our conversation.
If you have any questions, please dial in the telephone number on the bottom of the screen. We have five managements sitting here with us. Now, they can answer your questions. Operator, now let's take the questions.
Okay. Thank you. Please press star and one to ask questions. Before the investors confirming their calls with us, then we have a question here. In the next three to five years, what's your strategy?
Okay. Thank you. Let me take this question. For Autohome, after Ping An invested in Autohome in June of 2016, it has been four and a half years. We are now getting into a new era. Every year, we are trying to refresh our strategy. Now, we are looking into the future. What would be the next three years' strategy?
In the future, as Jingyu said, we are going to go for the industrial internet solution provider. We have a lot of traffic on the 2C side. We generate good content. We have a good branding pool. So we would try to attract the users and our customers. We are trying to go into lower-tier cities and try to attract the younger users. Now, on the 2B side, based on our traditional business, for example, advertising and leads generation and commercial business, we're going to deepen our relationship with 2B side. We also would like to launch new business. If you look back four years ago, we tried a lot of new business. And this year, the new business accounts for over 20% of our revenue, especially the data product. They would also have a lot of room for further growth.
So we believe that we can achieve new business one-third, advertising one-third, leads generation one-third. So that's a major strategy. Now, we talked about industrial internet, which is we call them the sky and earth internet, fully covered. So it's online plus offline. We call them earth because it's offline. We have a lot of offline activities. And this year, in our senior management report, we haven't covered this. We have the Cheyouquan. So we have the Cheyouquan. We have more than 100,000 of Cheyouquan. Every month, every day, there will be two Cheyouquan will host activities. Cheyouquan is a localized circle. Every month, there will be 20,000 Cheyouquan to host activities, for example, the roadshow, the salon, the meetings. Now, on the 2C side, we believe that would help to expand our business presence.
On the 2B side, we also, as we said, we cover the sky, the Virtual Auto Show. The Virtual Auto Show is fully online. We are in the leading position. And this year, in the U.K. and Germany, we also tried this, and it was widely welcomed. We are going to do more in the future. But the key is we should do more offline plus the online business and the big data services and Industrial Internet in-depth development. Now, we can connect 2B side with 2C side. We believe that the new strategy will definitely guide the next three years. We're going to have good growth momentum for the next three years. Okay. Thank you. Now, operator, your question. If there are investors, please click star and one to ask your questions.
Okay. Thank you.
The next question is from Miranda Zhang from Bank of America.
Thank you, operator.
It's my great honor to meet with all the senior management here today, and Jessica is also here with us. I just want to ask. Sorry, there's an echo sound, so my first question is addressed to Madam Jessica. Can you talk about the relationship between Autohome and Ping An? What are the latest updates on the future collaboration?
Okay. Thank you. The investor wanted to know the relationship between Autohome and Ping An. From Ping An Group's perspective, we believe Autohome is a strategic investor's strategic partnership. On one hand, from the user side, they have 576 million users, 200 million financial users, so Autohome provides a lot of information about cars, used cars, and new cars, the services, transactions. This is a very good value created for our customers, so on the 2C side, we had a lot of collaborations.
Now, on the ecosystem of the car business, so we are trying to digitalize and help the whole value chain to achieve digitalization. The 92 OEMs and the 92,000 dealers. And also, we have a lot of about 90,000 dealers as well as other partners for Ping An. We have a lot of business with them. In the past, we only talked about the financial business. Now, we want to converge with the data business and the software services. We can provide a platform business for them, which are very strategically important to Ping An.
Okay. Thank you, Madam Jessica. There are some data products related to your business. Mr. Zhang said for OEMs, we have the point and the different way to collaborate with them, which is quite good. Based on different collaboration scenarios from the OEM side, what is the output and the budget from the OEM side?
What is the range of your pricing? For the medium- to long-run, for the high value-added business, how much would be the penetration rate for the OEMs? Okay. Let me take this question. So we have different ways to collaborate. So it's based on the maturity of the customers and the depth of the collaboration. As for the budget, I just give you a few cases. If we start from the point, for example, the intelligent, it is based on the budget. Cheyouquan is more for R&D. If it's Smart Series, the budget is the OEM's budget plus the dealer's budget. That's the first scenario. When we connect the dots with the lines, then we bundle them together. When they get into a bundled service, then which is the total budget, including SaaS? This would be the change of the budget.
We can see when we are deploying the Autohome to cover different kinds of budget subjects. We will see we have diversified the coverage to expand the whole spectrum. The second would be the penetration rate. Currently, the CPL has four major clients. And as for the dimensional cooperation, it's focusing on one customer. So we want to deepen vertically so that we are able to do the dimensional and the network-based cooperation better. And annually, in this case, it will have much better performance than the point-based and line-based cooperation. So we think we are going to focus on the deepening of this kind of cooperation. And then the second would be expand the penetration rate. This will be our strategy. And thirdly, I would like to explain about the network-based partnership.
If I cooperate with a brand or a series of models annually, then it means we have changed our partnership model with the OEM. It means that we are going to negotiate with them annually. And for the rest, our team from Autohome will communicate frequently with the OEM team. It's like communication based on 365 days. It's not going to do it case by case or project by project. It will be very helpful for us to achieve a better performance. I would like to add some point to this question. And just now, you've asked about the market scale. For example, for Cheyouquan, we have done some survey on the customers. And the budget is about 0.5% to 1% of it. And for one year, maybe we have about 100 models, then it will add up to 35 million RMB of budget.
This year, we have about 600 models that are going to be launched. We can see the budget for it is about CNY 30 million R&D. If we combine all of this together, then it will be about CNY 10 billion market scale. This market will be much bigger than the traditional ads market scale. Thank you.
Thank you very much for our management. Next question. The next question is from Morgan Stanley, Eddy Wang. Maybe you can start your question now.
Hello? I'm Eddy Wang from Morgan Stanley. I have two questions. First is related to competition. We've seen that we are actually leading the industry and also the changing trends. We are always walking at the front. We have launched digital products and also the SaaS initiatives. We have been quite pioneering in the field. In these recent years, we found some changes.
First, our major competitors have changed themselves as well, and if we did not feel the major pressure of it, would it also change the direction of competition? And would it change or affect the decision of our management? Secondly, for the competitors, no matter for SaaS or the other digital products, will we see the other players in the industry, for example, Baidu. Would they become the new attackers? Will they change the competition landscape in the auto industry? And another question is that, and I've seen a chart that showed in your presentation about the trends between the domestic brands, especially for the mid-range brands, the mid-end brands has changed a lot. And I want to ask that what would be the products that we're focusing on? And also, what kind of implications on the direction of it? Would it affect our negotiation power?
If any, then how would we deal with it?
Thank you very much, Eddie. I'm going to answer these two questions. First is about competition. Competition always exists in the market, starting from the first day we enter the market, and internally, we should feel the risks. We should have the sense of crisis. I think in the past years, we have a very strong sense of risk-taking or the strong sense of crisis. We are very willing to expand into new areas or new products. You can see the Autohome has been changed a lot compared with us four years ago, and the vertical development of us has led the world. Secondly, we can see the competitors have their own play, their own strategy, including some of the new internet startups or the internet players are trying to expand and penetrate into the auto market.
On one hand, we must maintain the self-upgrades, which will always make ourselves young and should tailor to the approach that is applicable to the young people, including the content would be our core competence, and it's very professional. But if you just provide very dry content on the proficiency, then in the future, maybe you will lose the young group. It must be very fun, playful, and add the professional content at the same time to attract the young generation to join the Autohome, so we have done a lot of communication campaigns. Secondly, we've already launched the fast or the simplified Autohome that is focusing on the lower-tier cities, like the fourth or fifth-tier cities. That has been quite popular. It's not going to be conflict with our major products online. We should learn from others and learn from our competitors as well.
We should make our products younger and expand our coverage wider. On the B end, we should also keep our vertical advantages. We should get deeper for the vertical business. Before, I've already answered the question. We're not just focusing on the traffic because the process of purchasing cars is very complicated. It's not just focusing on the traffic on the superficial that are able to help us to do the business better, and we're going to focus on the trend of the business development. It's going to be closely related to the whole cycle. We call it empowerment, and now, it's actually a kind of integration. I'm going to switch to your second question that actually mentioned by Haifeng and Jingyu that is related to the dealers. After the deep integration, actually, it has been closely related to the amount of the ads or the leads.
It's just trying to help our customers to utilize the data, combining our data with their data to help our customers to generate higher value, to help them develop better products in a quicker manner, and also to boost their sales, marketing, management, and to have better approaches on all of this so that they can better face the competition in the market. By doing this well, I believe that Autohome is going to be very popular on the customer side. If we already reach this level, then it's very difficult for the other competitors to learn from us because we spend a lot of time and effort on it. We will know about it. Maybe I can give you an example.
We've already used more than one year to connect all the fundamental data that is trying to flatten and break all those silos on our fundamental data. Otherwise, it's difficult for us to build a high structure, the holistic structure. I believe that it's very difficult for other competitors to learn from us or follow us like that. We should always think about the crisis and iterate ourselves, upgrade ourselves, refresh ourselves, and pay very close attention to the market to learn the better practice. And also, we should deeper integrate with the business of our customers. In this way, I believe we can maintain the advantages for quite a while. Of course, we should move forward. Thank you very much for your question.
Thank you very much. I would like to remind the lessons.
If you want to ask a question, please dial the number on the screen and press the star and one to ask a question. Next question. The next question is from the China Automobile News.
Good afternoon, the management of Autohome. I'm calling from the China Automobile News. I have three questions. First, the market of this year is very special, and there are different factors that are affecting the whole market. So what will be the new challenges we face as we provide the leads? And what will be the future landscape in the market? What kind of changes will we have? And after the COVID-19 is under control, especially in the second half of this year, what kind of initiatives that Autohome has taken to maintain our advantages against the competitors?
The second question is, I want to ask you to reveal the change in the online platforms on monitoring or providing needs because we know that we have some data gap or conflicts with the other platforms, and the third question: just now you've introduced that we first launched the integrated CPL activities or capability, and you said that it's beyond our expectations, so what will be your plan next year for these services, and we've seen that the price effectiveness is much higher than overseas products for the integrated CPL products. Thank you. These are the three questions that I want to ask.
For the first question, I'm going to answer. I would like to provide answer in this year. The new car market has been badly affected by the COVID-19 epidemic, but it's actually following the pattern.
Compared with last year, it's going to just be flattened or even see some decrease according to the trend, and you've also asked about the lead provision media like Autohome. And I think the COVID-19 has influenced our platform, and also, we are working on the strategic transformation as well. We are actually on the high level or the high level that is related to communication center or the car owner center. We are trying to expand the car owner center and the communication center, and under them, it's our traditional business that is leads platform. And from this perspective, in 2016, guided by Mr. Lu, we are actually trying to deepen our business, and today, we've introduced that we would like to become the leader in the digital platform and the technology services platform. This is what we're working on in the industry.
Secondly, when we're trying to get deeper, we are also trying to provide something like the transaction services platform. This is one of the directions that we're working on. You can also see that next to our lead platforms, we are also working on the used car. That is the lead and transaction platforms, a disposal platform. Because when we move forward, you're going to see the sales of the new car is mainly from the trade-in. Trade-in is related with two things. First is the car owner centers. We are the biggest car owner center in China, in the world. Next would be the disposal of the old car. This would be the second important factor. That's why we are working on these factors.
I would like to add some point to it as for some data of it. You talk about the traffic, the traffic, and the leads. I want to say that for the traffic, 80% of them are self-priority traffic. For the leads, 98% of the leads are self-generated leads. In October, I noticed that for our APP downloads is about 10 million. You talked about another platform. Their download is only about 8 million, but they spend 10 times more on trying to recruit the new customers. So our high-quality leads generated very good conversion rate. So our average cost is CNY 22. Overseas is about $20-$30. So that's my comment. Okay. That is to say a different company may have a different strategy. The used car business, I don't want to make any comments on the name or any specific name.
But there are some companies who burned a lot of cash to exchange for good traffic, but it's not sustainable. Their investment return is low. So for us, our rule is our leads maximum should be 98% of the leads were self-generated. So that's why we can generate high-quality leads. If we want to go for higher numbers, we can buy a lot of leads. But for the external leads, the conversion rate is quite low. So different companies may have different strategies. Second is about the traffic. I also read the reports that they said somebody's traffic is better than Autohome. Then I said, "Whoa, this is skeptical." There are some companies who disclose their traffic. You should ask, "Are they have enough reputation? Are they trustworthy?" The MAU usually is five to six times of the DAU. Our DAU is about 40 million.
So the MAU usually is five to six times of DAU. So in this way, we believe that the media friends, you should pay attention to the business model and the key numbers. Some of the numbers, they are not trustworthy. Okay. That's just my comments. Yeah. Some of the OEMs also asked us. I haven't answered them directly, but I quoted a few numbers. I said, "If you have time, you can make your own calculation." For example, from the DAU to leads, you can source back. If the same leads were generated, then the daily DAU should be how much? The key is the daily DAU. The DAU is key. The MAU, you just travel to the sites just once per month. It doesn't mean anything. DAU matters more. Okay. Next question, please.
Thank you. The next question is for HSBC, Ritchie Sun.
Thank you, management.
Thank you for taking my question and thank you for your sharing. I have two questions. Number one, which is more technical, which is related to data? Some of the question is for some of the upgrading of the data and the accuracy of the data, how can you ensure that? For the online, if somebody visited the traditional car model and they had a WeChat conversation with his friends over the WeChat, but they end up with shopping for EV car, there are some data discrepancy here, so how do you manage this? There are some users when they grow older or their jobs change, then there are lots of customer data changes, so how can you ensure you can precisely push the product to your appropriate customers? Another question is the cost. For the data product, the R&D cost is already you already actually paid off the cost.
So for any product, if it's in the later cycle, the R&D cost would go down. So for the online retail business, you have to have high penetration rate. So for management, in the future, we understand the R&D cost would go up because you always have a new product to be offered and to in the pipeline. For example, the used car business.
Okay. Thank you. First of all, the different statistics and the quality of the data, we believe that some simple statistic number doesn't matter. I think the key is how many customers are trying to echo with you on the touchpoint? After they meet with the touchpoint, how much data would they leave you? For Autohome, so actually, we have high interaction with the users. As long as there is somebody who provides feedback on us, then we would provide them with enough information.
For example, the opinion of the car, the expectations, the satisfaction level. So those voices of the car OEMs, they should not rely simply on AU, but they need to rely on in-depth AU. So we look at when and how is the focusing point. That is one of the key advantages we have. For the other OEMs, if they only focus on traffic, maybe the traffic is big, but they don't have good touchpoint. If they don't have meaningful data, actually, they are not like us. We are in a vertical media, and we understand the customers very well. Second, it would be the future direction of the data product. I basically agree with what you have said. For the data business, the key is the hardware investment. The second would be 816.
So we are trying to clean the data, and we spend one year and a half to clean the data. So we have the cloud identification. We have the speech recognition technology, the video analysis, which are the basic algorithms. Now, based on the basic algorithm, we can launch the applications, and we quicken the steps much more because we have the basic infrastructure. We have the methodology. We have the algorithm. We also have the strong middle office. So in this way, we can launch with more and more applications, and our investment can generate good return.
Okay. Thank you. Another question is from the email. It's from Craig Zhang . Two questions. Firstly, advertising and the leads generation business, what are the revenue for the next year, and what is your long strategy for the advertising business?
In my presentation, I already said that.
Strengthening our leadership in our traditional business, and with the recovering of the auto market since second half of this year, we believe we will be actually grabbing more wallet share from the OEMs and dealers, and that's for traditional business. Now, the TAM is still big. As I mentioned, the overall TAM is CNY 80 billion for traditional media and lead generation business. And our unit price for leads are still low. Now, as for margin, of course, it's always our effort to actually control costs on traditional businesses, and with the saving from traditional businesses, we are able to reinvest in actually new business and new initiatives. And you saw that we are able to actually increase our new business in a very aggressive way. Overall, data business has increased by 65% in the first three quarters of this year.
And I do believe this will continue to be our sort of focus. Thank you.
Thank you, Guan Ying Cang.
Ladies and gentlemen, the investors, If you would like to ask a question, please press star then one on your telephone keypad.
If you want to ask questions, please push star one to ask your question. Now, the next one. Thank you. The next question is from Citibank. Now, you please.
Thank you. Thank you for the wonderful sharing. I have a question for Ping An. So Ping An and Autohome, in terms of financial business, what are the new strategy and the new direction for your future collaboration? The second is OEM industrial platform. You have different ways of business collaboration. For the OEMs, if they want to do holistic digitalization and the informationization, how large is the cap of that market?
Okay. Thank you. The first question, let me take it. And the other gentlemen, you can always make extra comments.
Ever since 2017, Ping An, as we said, on the financial side, we provided product for Autohome. For Autohome, on our platform, we started to do the deal matching business. We are like a market maker. We charge commission. In this business model, we felt that this model is not a highly efficient conversion model, which is not very effective. Now, based on the scenario, I think financial business would be more promising. On one hand, Ping An can customize some of the financial product based on different scenarios. The key is for the insurance, the auto insurance and the non-auto insurance. Non-auto insurance is not standardized product. On the credit lending, we have the Ping An Bank and Ping An Leasing. They can do the credit lending.
The third piece of business, which is key for Autohome, we can leverage on Ping An's user profile. For Autohome, we can provide car purchase services. We can extend into Ping An's scenario. In this way, we can provide better leads and also off-site leads.
Also, the transactional commission can be generated. For the second question, that is about digital transformation. In recent two years, the Chinese auto industry, especially the XPeng brand, have been trying to move forward on digital transformation. I've been communicating with some of the domestic brands. If you want to work on digital transformation, maybe you will meet a lot of difficulties just relying on one OEM, just relying on yourself first. The big data talents is a severe lack in the market because they are able to get higher payments in some digital companies.
Digital transformation will be separated into two parts. First is internal operational management. The second would be the insight analysis on the customer end. For the internal data, you can actually acquire part of the data. But for some of the detailed data on the sales end, it's very difficult to capture because it would rely on the other platforms, and let alone the customer data. They actually need a platform like Autohome with solid customer base and understand the trajectory of the customers. So we suggest that only by cooperating between two strong players that we are able to move forward quickly and better and easier. Of course, they are actually focusing on the production, but as for the circulation part or the sales part, we will find some difficulty.
I will pay my respects to three to four enterprise leaders because they spend a lot of efforts on digital transformation in China. But there were some budget limits. Of course, they haven't reached the ceiling of the budget, but along with the transformation and the deepening of the transformation, we will see that the resources need to be invested in this process will be different. And originally, maybe they were what we first saw in sales marketing, and they have part of those people. So what would you like to add? Jingyu Zhang. And as for the industry, internet is actually a very big system. And all the budget is based on the business that you covered. And the current system is just started, and OEM is trying to cooperate with us. And we are going to build up the primary model in the middle of next year.
We feel quite optimistic about it, but we still need to pay close attention to the budget.
Next question is from Jonathan of BofA. What will be the strategy online, and what will be the contribution of the revenue that you will expect from B2C or the other directions? Also, what will be your plan for the SaaS to OEM and overseas auto market?
Thank you very much. After we invested in the TTP Car, we have started to work with TTP on the overall planning. The relationship between Autohome and the TTP will be like the TTP will be the upstream of Autohome, Autohome will be the downstream of TTP, and TTP is actually an important partner on car disposal for the used car market. We have very strong synergy. This synergy is mainly demonstrated in two perspectives.
First, for the TTP, TTP is going to acquire C1 leads. That is very quality leads from our platform and also from OEM and from the source. So the source of cars will be diversified with so many sources. The used car business of Autohome will have a very big influence on it as well because TTP is related with transaction. There are 40,000 merchants, and they have some overlap with Autohome, but only with 10% of overlap on this merchant. Then on the C2 of Autohome, we will have a merchant's home, a merchant's sector. This will be the impact on the used car market. It will help us to cooperate with TTP, starting from the leads to transaction to services to customers. The whole process will be connected from the perspective of Autohome through TTP.
We have acquired some new C2 merchants. I'm going to ask some point. For the used car market, the used car market is actually an important field for Autohome in the future. In recent years, we have invested a lot in the used car market. We've seen some great outcomes last year, and they have actually gained profit in these recent two years and increasing this profit as well. In the last eight years, we have seen a lot of loss. It's about CNY 200 million of loss. But in the recent two years, we have seen the profitability of it, and we are very optimistic about the large used car markets. And TTP is our entrance or the assets to the used car market. We would like to become the entrance or the assets to the used car market in China or even in the world.
In the US, they also have Carvana that is about more than $20 billion. And it's also a C2B entrance, and it has achieved about $20 billion of value. So in China, affected by the COVID-19, the new car has been affected, but the used car did not see any negative growth, but it still maintained its original growth rates. We did not see any negative growth of it. In the future, we are very optimistic about it. Online, we would like to occupy the largest traffic entrance. We want to have the biggest traffic for the used car market. And the next will be the transaction volume should be the biggest for C2B. And we're also working on the B2B. And for the B2C, that is C2, the leads should be the biggest in terms of volume as well.
We're also working on the asset-light as well. We want to build up the whole ecosystem. In this ecosystem with large traffic, we are going to make the used car sector as an important business for us. I would like to do some follow-up. First, the used car market will surely gain rapid increase. You can see the U.S., the used cars is actually bigger than the new car market. The used car market transaction has achieved about 11 million. We believe that the number is going to increase in the future. Just now, our management also mentioned it. There are two factors. First is buyer and sellers traffic online, that is C1, C2. This is the advantages of Autohome. We naturally have this kind of advantages.
We don't have to pay a lot of capital on it like the other companies. For those buyers and sellers, if you never contact with the offline resources, just like what you mentioned, 40,000, there are 40,000 merchants and has very limited overlap with us. Maybe we will have about 60-70 merchants together. And we have invested in the TTP in 2016. And the online and offline leads have linked with the merchants and the auction platform. And starting from 2016, we've already started to promote this platform and model. And however, we have emphasized its position and the strategy to make it into a better closed loop. This will be an important direction for the Autohome and even a big part, a big business model for us. Maybe Jun Zou can talk about the overseas market for us.
Maybe I'm going to give a head start on it. We have two approaches in overseas. First is investing in some acquisition for some vertical platforms. And this is what we are trying to do. As for the output of Autohome, we have built our presence in China already. And that data has attracted the customers, and you don't have to pay for the traffic. And all the traffic has been converted into leads, and 90% or 80% of it has become the lead assets for us. And we don't have to pay for that. Next would be the big data access. We have 1,700 engineers. Not all the internet companies can pay for this. And this will provide a proprietary model on the Autohome. And we've already had half of the world's data.
And now we are able to provide the output based on this data. And we have built a very good relationship with the OEM as well. And we have closely worked with them, with the OEMs. And this will be the relationship with them is also part of our access. As for the overseas market, I would like to add some point to it. First, starting from last year, we've reached out to the U.K. and Germany. But we know the COVID-19 epidemic has hampered the process. However, apart from the revenue, the other has gone beyond our expectation. It's already two million. So it means we have reached about upper median. Maybe next year we'll reach about 2.5 million. But we have just started. So it has gone beyond our expectation, and it's very promising.
The rationale is that first, because we have a large team and it's located in Beijing. Now in the U.K. and Germany, we just have 20 to 30 people. We have expanded to 40 to 50 people. If you want to build up a company like us, if you do not have 300 to 400 people, it is very difficult. We are very competitive in local markets, and in the U.K. and Germany, the cost of leads is three times of China's price. If we take Europe as a big region, then you can compare or benchmark each country to the cost of the province in China. If you do not have a lot of leads, but the leads cost is very high and three times higher than the Chinese cost, then we will see the potential of Autohome to enter those markets.
Next year, we expect we will have a better performance. Also next year, we're going to reevaluate the markets in Europe, whether we are able to get into it or not. Some of the investors will worry about the cost of entering those markets. We can tell you that this will not have very big or significant influence on our revenue or expenses because this model will decide that it will be a low-cost expansion. Thank you very much for the answer from our management. For the last question, operator, the last question is from the public channel from Jefferies. Maybe you can start now. Thank you very much for accepting my question. Can you tell me that in 2021, from the perspective of Indonesia and also Malaysia, what will be the future market share in the future in 2021? Okay.
The overall auto market in China is highly relevant to your question. Expectation across the market is about 6% positive growth in Chinese market. As for the leads and sales, it's highly related with it. If the sales volume increases, then the online sales will increase as well. If the sales volume increases, then the budgets of the OEMs will increase as well. There is a proportionate relation between all of these factors. They will increase their investments on the online platform as well. The ads revenue is always the traditional one of our two traditional business lines. We will continue to maintain these advantages or performance. Thank you very much for the answers of our management. Maybe you can have a rest. Mr. Jun Zou can give us a closing remark.
Thank you very much for joining us for the second time on the Investor Day. We're very glad that even the market was down, we will continue to support the OEMs, the dealers to expand the business. In the past few months, we do see the recovery of the market and of the industry. We have deepened our collaboration with a lot of players. For example, the top five OEMs, the luxury brands, and they all enhanced more advertising and their investment with us. They actually get more and more leads from us. The leads are dominating in the market. This is mutually complementary to each other. We're very happy we can help the OEMs to do even better. The OEMs can also contribute to our high growth of the revenue in the future. I would like to thank the investors for your support.
I would like to thank Madam Chen from Ping An. Thank you very much. Thank you very much. I would also like to thank the Chairman and the CEO of Mr. Min Lu. Thank you for participating in this investors' day and made a wonderful presentation. Thank you, Mr. Min Lu. I would also like to thank my colleagues, Mr. Shao, Mr. Jingyu, and our IR team, and the Tech team from Ping An. They made tremendous efforts to make this investor day very successful. Hope to see you next year. Thank you very much. Thank you.