Uxin's Growth Strategies and Financial Objectives for 2024

2024-04-26

Uxin, a prominent player in China's used car industry, recently conducted its Third Quarter Fiscal Year 2024 Earnings Conference Call to engage with investors and analysts on its business performance and future strategies. The call was led by Dai Kun, the Founder and CEO of Uxin, and John Lin, the CFO, who shared insights on the company's operations.

During the call, Dai Kun emphasized Uxin's growth in the retail sector, achieving EBITDA profitability at a store level, and aiming to reach EBITDA profitability at the company level by the close of 2024. The company's superstores demonstrated strong performance, maintaining efficient vehicle turnover rates and securing industry-leading Net Promoter Scores.

To enhance customer acquisition and sales conversions, Uxin implemented various strategies, including providing premium quality services, launching customized value-added products, and optimizing business operations for cost efficiency.

Despite facing challenges in the new car market, Uxin's prudent vehicle acquisition approach and effective management of market fluctuations have positioned the company for success. Plans are underway to expand operations by opening new superstores and increasing inventory levels to meet growing consumer demand.

In terms of financial objectives, Uxin aims to achieve monthly EBITDA breakeven by September 2024 and overall EBITDA profitability by year-end. The company anticipates performing well during the off-season for the used car industry and plans to counter the impact of new car price reductions through strategic pricing adjustments and inventory management.

Uxin is also capitalizing on the government's focus on promoting the auto industry, particularly through trade-in subsidy policies that encourage vehicle upgrades and boost used car transactions. As a leading player in China's used car sector, Uxin actively supports and benefits from these policies by facilitating trade-in programs and hosting events at its superstores.

Looking ahead, Uxin views the trade-in policy as a long-term opportunity for revenue and profit growth, with plans to explore diverse business models to leverage this initiative. By utilizing its superstores as primary platforms for trade-in events and prioritizing customer-centric strategies, Uxin continues to fortify its position in the competitive used car market in China.