Uxin Limited, a leading used car retailer in China, reported a strong first quarter for fiscal year 2025, marked by substantial increases in transaction volume, revenue, and improved customer satisfaction.
Key Highlights from Q1 2025:
- Total Transaction Volume: Increased by 38.1% quarter-over-quarter and 72.2% year-over-year, reaching 5,605 units.
- Retail Transaction Volume: Surged by 30.9% sequentially and 142.4% annually to reach 4,090 units.
- Total Revenue: Jumped by 25.7% compared to the previous quarter and 38.8% year-over-year, amounting to RMB401.2 million (US$55.2 million).
- Customer Satisfaction: Uxin achieved an industry-leading Net Promoter Score of 65, showcasing improved customer experience.
Management Commentary:
Uxin’s CEO, Kun Dai, emphasized the success of the company’s integrated online-offline model, highlighting the robust sales growth and efficient inventory turnover. He also expressed optimism about the future, with plans for further inventory expansion and superstore network growth in new regions.
CFO Feng Lin highlighted the significant 74% year-over-year increase in retail vehicle sales revenue, while maintaining stable gross margins. He also noted the company’s disciplined cost control measures, which helped narrow the adjusted EBITDA loss. Uxin anticipates continued rapid growth, with retail transaction volume projected to reach 5,800 to 6,000 units in the next quarter and the company is confident in achieving EBITDA profitability by the December quarter of 2024.
Looking Ahead:
Uxin’s strong Q1 2025 results and positive outlook suggest a promising future for the company. The company’s strategic focus on expanding its inventory, superstore network, and enhancing customer satisfaction seems to be paying off. Investors and industry watchers will likely be keeping a close eye on Uxin as it continues to navigate the dynamic Chinese used car market and strive towards profitability.
