Uxin reports Q1 2026 sales up 119%, eyes 100+ unit target

Uxin Limited (NASDAQ: UXIN), a China-based used car retailer, released an investor FAQ addressing questions on China's used car market, its business model, expansion strategy, and capital resources, according to a company statement.

In the first quarter of 2026, Uxin reported retail transaction volume of 16,530 units, up 119% year over year, which the company described as its eighth consecutive quarter of more than 110% year-over-year growth. The company expects first-half 2026 retail transaction volume to increase by more than 100% year over year, and targets full-year growth of over 100%, which would bring total volume to approximately 100,000 units for 2026.

Uxin operated six superstores as of March 2026, following the opening of a Tianjin location, and plans to open four to six additional superstores during 2026. The company's five-year target is to operate more than 50 superstores and reach annual retail transaction volume exceeding 1 million units by 2030.

On capital, Uxin said it had approximately $40 million in signed but unclosed equity subscription commitments as of June 22, 2026. Management said existing financing arrangements are sufficient to support planned openings through 2026, while additional financing is being pursued for expansion beginning in 2027.

Regarding market conditions, the company noted that used ICE vehicle prices in China declined approximately 10%–15% during the second quarter of 2026, following a roughly 20% drop in new passenger vehicle sales during the first five months of the year. Uxin said gross margin in the third quarter is expected to rebound from second-quarter levels as older inventory clears and newly acquired inventory reflects adjusted pricing.

Each new superstore requires approximately $10 million in investment, with roughly $7.5 million allocated to vehicle inventory and operating capital and $2.5 million to equipment and facility costs. Inventory financing covers approximately two-thirds of vehicle acquisition costs, the company said.

China's used car transaction volume reached 20.1 million units in 2025, representing a used-to-new vehicle sales ratio of approximately 0.6:1, compared with ratios of 10%–15% relative to vehicle ownership in mature markets such as the United States, Japan, and Germany.

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