SCAS, headquartered in the south China city of Shenzhen, sells a wide range of international brands such as Volvo, Jaguar, Land Rover, Mercedes-Benz, Infiniti, Acura, Peugeot, Citroen, Toyota, Ford and Volkswagen.

ZhengTong paid 5.5 billion yuan ($862 million) for SCAS, according to a disclosure last week to the Hong Kong stock exchange, where it is listed.

ZhengTong runs 33 franchised dealerships for BMW, Mini, Audi, Nissan, Hyundai, Buick, Chevrolet and Honda in 14 Chinese cities. Currently, luxury brands account for more than 80 percent of its revenue.

Thanks to the robust sales growth of luxury vehicle brands in China, ZhengTong's sales revenue increased 92 percent year-on-year to 6 billion yuan, while profits rose nearly 92 percent to 293 million yuan.