Uxin Outpaces Industry, Sets Stage for China's Used Car Market Evolution
Uxin, a leading online used car retailer in China, has emerged as a major player in the industry, outperforming the broader market in the second quarter of 2026. According to a recent conference call transcript, Uxin's retail transaction volume reached 19,610 units, a staggering 89% year-over-year increase and 19% sequential growth.
Despite the challenging market conditions, with new passenger vehicle sales in China declining by more than 20% year-over-year, Uxin's Net Promoter Score (NPS) remained at 68, solidifying its position among the highest in the industry. The company's CEO, DK, attributed this success to their proactive approach to managing price volatility and accelerating inventory adjustments and sell-through.
Uxin's digitalization efforts have also paid off, with significant improvements in pricing accuracy, coverage, and response time. This has enabled the company to respond more quickly and accurately to market changes, further enhancing its operating efficiency. The overall inventory turnover at Uxin has shortened from approximately 30 days to around 20 days.
As the Chinese used car industry continues to consolidate, with nearly 30,000 brick-and-mortar used car dealerships exiting the market in the first half of the year, Uxin is poised for further growth. The company expects its per unit profitability to recover to above 6%, with sales volumes and operating efficiency at existing super stores expected to ramp up.
Uxin's expansion plans include the development of six new super stores in key cities across China, as well as ongoing discussions with additional cities on new partnerships. This nationwide warehouse-style super store network is set to further solidify Uxin's leading position in the industry.
CEO DK believes that 2026 could mark the beginning of a new phase in the evolution of China's used car industry, with traditional operating models rapidly losing ground and the industry shifting towards a more scaled, standardized, and digitalized retail model. Over the next two to three years, the company expects this transition to continue, with Uxin well-positioned to maintain its leadership.
