Uxin sold 19,610 used cars at retail in the June quarter, up 89% from a year earlier, in a market where nearly 30,000 dealerships have already closed. The company reported the figure on its second-quarter earnings call for the period ended June 30, 2026.
The growth came with a cost. Gross margin was negative 0.7%, against 5.2% a year earlier, and the adjusted EBITDA loss was RMB 120 million. Chief Financial Officer Feng Lin blamed prices. “Auto prices, particularly prices for new ICE cars, underwent a rapid adjustment over a relatively short period,” he said, which hit the margin on inventory already on hand, so the company sold it down early.
By the numbers
Retail revenue was RMB 1.08 billion, up 78%. Average selling price fell to RMB 55,000 from RMB 59,000. Wholesale volume reached 2,289 units, up 88%, as the company cleared inventory from its retail operations. Total revenue came to RMB 1.51 billion, a 75% rise.
Inventory turnover is the figure management leaned on. It dropped from about 30 days to about 20, which Uxin credits to AI-driven pricing and risk control. Its Net Promoter Score stayed at 68.
A market in contraction
Founder and Chief Executive Dai Kun described a year of consolidation. New passenger vehicle sales in China fell by more than 20% in the second quarter, with sales of internal combustion engine cars down nearly 40%. Used car transactions slipped only about 1.4%. But falling new car prices keep flowing into the used market, he said. He expects 50,000 to 60,000 dealerships to exit this year, more than 20% of the industry.
The pressure has not eased. Uxin said nationwide used car transactions fell 6% in July and 11% in August.
“Risks in the automotive market remain elevated,” Dai said, which is why the company is keeping to a cautious approach that stresses turnover, profit per vehicle and capital efficiency. He expects the industry to move away from fragmented, nonstandardized dealing toward scaled, digitalized retail, and called the next 2 to 3 years a critical period for reshaping the market.
Third-quarter targets
Uxin guided to retail volume of 20,500 to 21,000 units, revenue of RMB 1.16 billion to RMB 1.19 billion and a gross margin above 6%. Management said inventory resets are largely done and profit per unit has recovered since the quarter began.
Six warehouse-style superstores are under development in Yinchuan, Guangzhou, Wuxi, Chongqing, Shijiazhuang and Shaoxing, and talks with more cities continue. NIO Capital has put in $4 million, the first half of an $8 million financing round, with the rest waiting on an overseas direct investment filing. A $5 million share purchase plan by the CEO was due to begin on Sept. 28.
