Uxin (NASDAQ:UXIN) reported continued rapid growth in retail used-car transactions for the quarter ended March 31, 2026, while management warned that sharp price adjustments in China’s auto market are pressuring near-term margins.
Founder and CEO DK said retail transaction volume reached 16,530 units in the first quarter, up 119% year over year, despite the seasonal impact of the Chinese New Year holiday. He said it marked the eighth consecutive quarter in which Uxin’s retail transaction volume increased by more than 110% from the prior-year period.
Revenue More Than Doubles From Prior Year
CFO John Winn said retail vehicle sales revenue totaled CNY 1.01 billion, up 118% year over year and down 10% sequentially. He attributed the year-over-year revenue increase primarily to higher retail transaction volume. The average selling price for retail vehicles was CNY 61,000, compared with CNY 59,000 in the previous quarter and CNY 62,000 in the same period last year.
Wholesale transaction volume was 1,681 units in the first quarter, up 134% year over year and down 32% from the prior quarter. Wholesale revenue was CNY 27.9 million. Total revenue, including retail and wholesale, reached CNY 1.074 billion, up 113% year over year and down 10% sequentially.
Winn said gross margin for the quarter was 7%, compared with 6.8% in the prior quarter and 7% a year earlier. He said newly opened superstores generally have lower gross margins than mature locations, but the larger contribution from mature superstores helped keep overall gross margin stable.
Adjusted EBITDA loss was CNY 34.3 million, compared with a loss of CNY 27.2 million in the previous quarter. Winn said the sequential increase was mainly due to the Chinese New Year’s seasonal effect on sales volume. Compared with the same period last year, adjusted EBITDA loss increased by about CNY 25 million, which he attributed to newly opened superstores still being in early ramp-up stages and upfront staffing investments to support expansion.
Management Flags Pressure From Auto Market Volatility
DK said China’s auto market has slowed since the start of 2026. He said cumulative new vehicle sales declined 20% year over year during the first five months, with internal combustion engine vehicle sales under greater pressure. In April and May, new ICE vehicle sales fell by more than 35% year over year, according to DK.
He said used-car prices also adjusted significantly beginning in April, with prices of mainstream used ICE vehicles falling 10% to 15% within one to two months. DK said such market conditions raise the requirements for used-car retailers in pricing, inventory turnover, capital efficiency and risk management.
Despite the pressure on profitability, DK said China’s used-car market recorded a 2% increase in transaction volume during the first five months of the year, outperforming the new-vehicle market. He said consumer acceptance of used cars continues to improve and that lower residual values for ICE vehicles could make used cars more attractive to buyers seeking value.
In response to a question from Deutsche Bank’s Bin Wang about why price declines became more visible in the second quarter, Winn said the first-quarter used-car sales environment was broadly in line with expectations, while the sharper pressure appeared after ICE vehicle sales fell significantly in April and May. He said Uxin would prioritize healthy inventory turnover over short-term gross margin optimization, meaning second-quarter gross margin would face “greater pressure.”
Winn added that new-car prices appeared to have stabilized since early June and that inventory affected by earlier price volatility was being gradually cleared. He said Uxin expects gross margin to improve meaningfully in the third quarter and potentially return to normal levels, provided ICE vehicle prices do not continue to fall significantly.
Superstore Expansion Continues
DK said Uxin’s Tianjin superstore officially began operations in March, becoming the company’s first project in North China. He said the location can accommodate more than 3,000 vehicles for display and sales. With Tianjin, Uxin now operates six superstores nationwide.
The company has also announced strategic partnerships with local governments in Chongqing and Shijiazhuang to jointly invest in and operate used-car superstores. During the question-and-answer session, DK said Uxin expects to open four to six new superstores in 2026. He said announced projects include Chongqing, Shijiazhuang, Yinchuan, Wuxi and Guangzhou, with some approaching trial operations and others in facility preparation, team building and inventory sourcing stages.
DK said Uxin would not change its long-term nationwide expansion strategy because of short-term market volatility, but it would remain flexible in execution. If market conditions remain difficult, he said the company may take a more conservative approach to new store openings, inventory ramp-up and operating expenses, while prioritizing cash efficiency, inventory turnover and store-level operating quality.
In response to a question from SWS Research’s Wenjie Dai, Winn said Uxin’s Xi’an superstore, which opened in December 2022, has reached a more mature stage. He said its monthly retail transaction volume peaked at 2,700 units last year, representing roughly 25% local market share, and that it has achieved store-level profitability.
Winn said newer superstores are ramping faster than earlier locations. He said Wuhan, which opened in March 2025, exceeded 1,000 monthly retail transactions within about six months, while Zhengzhou, opened in September 2025, reached that level in about four months. He attributed the faster ramp to more mature procurement, pricing and inventory systems, standardized operations, stronger brand recognition and improved site selection.
Outlook Reaffirmed
For the second quarter of 2026, Winn said Uxin expects retail transaction volume of 18,000 to 19,000 units, representing year-over-year growth of 73% to 83%. Total revenue is expected to range from CNY 1.05 billion to CNY 1.1 billion.
DK reaffirmed the company’s target of achieving more than 100% year-over-year growth in retail transaction volume for full-year 2026.
Responding to a question from CMS’s Xing Xing Li about differences between ICE vehicles and new-energy vehicles, DK said China’s passenger vehicle sales fell nearly 22% year over year in May, with ICE vehicle sales down 39% and NEV sales down 7.5%. He said NEV retail penetration exceeded 60%, but Uxin has not seen a meaningful increase in the share of NEVs in the used-car market because NEVs still account for less than 15% of China’s total vehicle ownership.
DK said the current market correction represents a reset in residual values. He said the residual value of a three-year-old used vehicle in China, measured against current new-vehicle prices, has fallen from roughly 68% to 72% to about 58% to 60%, bringing it closer to levels in mature markets such as the United States, Europe and Japan.
About Uxin (NASDAQ:UXIN)
Uxin Limited is a China-based online and offline used car e-commerce platform that connects vehicle buyers and sellers through an integrated digital marketplace. Headquartered in Beijing, the company operates a network of physical used-car malls alongside its proprietary online platform, enabling customers to browse, inspect and purchase pre-owned vehicles with transparency and convenience.
The company’s core business activities encompass sourcing, quality assurance and distribution of used vehicles.
