Uxin Reports Increased Sales Volume Amid Profitability Decline
Chinese used car retailer Uxin announced its second-quarter 2026 financial results, showing a significant increase in sales volume. However, profitability was impacted by falling car prices and a rapid inventory sell-through.
Uxin Limited, a leading used car retailer in China, reported its unaudited financial results for the quarter ended June 30, 2026, on September 24, 2026. The company's total transaction volume rose by 88.7% year-over-year to 21,899 units. Retail transaction volume also saw a substantial increase, growing by 88.8% to 19,610 units.
Despite the surge in sales volume, Uxin's gross margin turned negative at -0.7%, a decrease from 7.0% in the prior quarter and 5.2% in the same period last year. Total revenues increased by 74.9% to RMB 1,151.2 million (approximately US$169.7 million). The company reported an operating loss of RMB 151.9 million, with a non-GAAP adjusted EBITDA loss of RMB 119.8 million.
Founder, Chairman, and CEO Kun Dai attributed the results to a sharp decline in used car prices during the second quarter. Uxin responded by accelerating inventory sales to align with the new pricing environment, which pressured short-term profitability. Dai stated this strategy allowed for quicker inventory realignment and faster turnover.
Looking ahead, Uxin expects retail transaction volume to be between 20,500 and 21,000 vehicles in the third quarter. CFO Feng Lin anticipates the overall gross margin to recover to above 6% in the third quarter, as market volatility eases and operational efficiencies improve.