China’s largest used car ecommerce platform Uxin (NASDAQ:UXIN) recently released its December 2018 financial report. Due to the holiday shopping season, Uxin’s revenue reached RMB 400 million (USD 59 million) in December, good for an increase of 75% year-on-year. This indicates the company has become profitable. According to the report, Uxin achieved a total turnover of more than 100,000 vehicles, an increase of 44% from last December’s totals.
Among the most notable numbers, the monthly purchase volume of 10,000 vehicles is an increase of more than 75 times from last year’s figures. The acceleration of cross-regional transaction has become a new growth point in China’s economy and will continue to be a driving force for used car sales. The underlying cause of the increase in sales is the construction of a nationwide trading network, which helps distinguish Uxin’s business model from those of other used car e-commerce companies and also empowers Uxin to control the transaction chain.
The establishment of the nationwide trading network helps Uxin open a door to rapid growth with low costs. Moreover, Uxin has sought to cooperate with other corporations, such as e-commerce giant Alibaba. Uxin has fostered comprehensive and in-depth cooperation with Taobao, a B2C website that belongs to Alibaba, in a range of fields such as B2C, B2B, finance and integrated used car supply chains. Data shows that on the December 12, 2018, during which many of China’s retailers offer huge discounts for consumers, Uxin’s used car turnover on Taobao reached 2400 with an average turnover of 17 units per minute, with revenue exceeding RMB 250 million (USD 36.9 million). Customers visited Uxin’s online Taobao shop 620,000 times.
According to Ning Jizhe, the deputy director of the National Development and Reform Commission, the government will take measures to promote the consumption of important products such as automobiles. Due to the support of relevant state policies and the continuous growth in demand, the used car market will grow further. In that holds true, used car retailers and e-commerce companies will benefit significantly.
(Photo from UXIN)