Uxin Limited (UXIN) reported robust growth in its latest quarterly results, with retail transaction volume soaring 31% sequentially and 142% year-over-year to 4,090 units. This surge drove total retail vehicle sales revenue to RMB 325 million, a 74% increase compared to the same period last year, despite a decline in the average selling price (ASP) from RMB 111,000 to RMB 79,000. The company’s strong operational execution and strategic inventory management have positioned it well amid easing competition in the new car market.
The implications for Uxin are significant, as the company expects retail transaction volume to reach between 6,800 and 7,600 units in the next quarter, translating to over 40% sequential growth. Additionally, management anticipates narrowing its adjusted EBITDA loss to below RMB 10 million, with a goal of achieving profitability by the end of the year. Notably, over 60% of vehicles are now sourced from individual owners, enhancing margins and supply chain resilience.
For market professionals, Uxin’s focus on expanding its inventory and value-added services, coupled with a strong customer satisfaction score (NPS of 65), indicates a solid growth trajectory. The recent $7.5 million financing to boost inventory further underscores the company’s commitment to capitalizing on market recovery and positioning itself for sustained profitability.
Source: fool.com