Uxin's second-quarter transaction volume increased by 37.5% year-on-year The used car industry is expected to show a rapid growth trend

On December 15, used car online dealer Uxin Group (NASDAQ: UXIN) released an unaudited financial report for the second quarter of fiscal 2022 showing that Uxin's used car trading volume for the quarter was 3648 units, up 21.2% month-on-month and 37.5% year-on-year; total revenue was RMB346 million, up 24.5% month-on-month and 352.7% year-on-year; gross margin was 4.2%, compared with negative 22.4% in the same period last year. Uxin's NPS index (Customer Net Recommendation Index) scored 56 points, up for four consecutive quarters.

In terms of financing, Lin Feng, chief financial officer of Uxin Group, introduced in the financial report that Uxin's operating expenses will be further optimized. The second round of funding is planned to arrive at $50 million, of which $27.5 million has already been placed ahead of schedule, and the remaining part will be in place as scheduled.

In terms of business, according to Uxin, in addition to the traditional fuel vehicle business, Uxin began to enter the new energy second-hand automobile business, including the establishment of a new energy vehicle source collection, testing and renovation system. At present, tesla, WEILAI, ideal and other brands have been listed.

In addition, for the Uxin used car Hefei hypermarket opened in November this year, Dai Kun, founder, chairman and CEO of Uxin, introduced that Uxin used car Hefei hypermarket is the second used car IRC opened by Uxin in Hefei, Anhui Province, and has been further improved in terms of environment, inventory, brand and service.

In fact, the used car industry involved in Uxin still has a lot of room for development. According to the research report of Tianfeng Securities, the second-hand car trading volume of the international mature automobile market accounts for about 70% of the total automobile trading volume. China's current car market and the United States in the 80s showed similar characteristics, the development of used cars or will show the same trend. On the basis of the controllable epidemic and the continuous improvement of the second-hand car-related system, the industry is expected to show a rapid growth trend, and the market is also expected to form a similar competitive pattern with the United States.

At present, the proportion of domestic second-hand cars in the sales of new cars still has 4 to 6 times the room for improvement, especially the integration space of upstream service providers is large, but the growth potential is suppressed by the pain points of the industry, and the system needs to be improved. In recent years, the development of the used car industry has received increasing attention at the national level. Since 2020, a number of policies have been introduced, and the second-hand car industry is expected to develop rapidly.

(Compilation of Caijing New Media)