Uxin Faces Profitability Squeeze Despite Surge in Used Car Sales

For the three months ending June 30, Uxin moved 21,899 vehicles, marking an 88.7% increase compared to the same period last year. Total revenue climbed to RMB 1.15 billion, driven largely by a 78% surge in retail vehicle sales. However, this growth came at a cost; the company reported a net loss of RMB 178.4 million, a steep decline from the RMB 67.6 million loss recorded in the second quarter of 2025.

CEO Kun Dai attributed the financial pressure to a rapid downturn in the automotive sector, where aggressive new-car price reductions forced a corresponding drop in used-vehicle pricing. To clear inventory affected by these market shifts, Uxin accelerated sales, which squeezed margins in the short term. Despite the current deficit, management expressed confidence that the business is stabilizing, citing a more measured inventory procurement strategy and an expected recovery in gross margins to above 6% by the third quarter. The company also continues to expand its physical footprint, recently launching a new superstore in Shaoxing to strengthen its presence in the Yangtze River Delta.