Uxin's Q4 Gross Margin Falls to 6.8% as ASP Drops to RMB59,000
Uxin narrowed its adjusted EBITDA loss to RMB57.9 million in FY2025, and Q4 gross margin fell to 6.8% from 7.5% as ASP slid from RMB65,000 to RMB59,000 year-over-year. Management plans to open 4–6 superstores in 2026 (over ten by year-end) and expects gross margin to recover above 7%.
1. Q4 Financial Performance
Uxin reported strong top-line growth but faced margin pressures in Q4. Adjusted EBITDA loss narrowed by 28% to RMB57.9 million for the full year, while ASP dropped from RMB65,000 to RMB59,000, driving gross margin down to 6.8% from 7.5%.
2. Superstore Expansion and Margin Outlook
The company plans to open four to six new superstores in 2026 and exceed ten by year-end. Management expects each new store to reach mature gross margins within six to nine months and for overall gross margin to rebound above 7% next year.
3. ASP Trend and Pricing Strategy
Retail ASP has begun stabilizing and is forecast to surpass RMB61,000 in Q1 2026, supported by steady new car pricing. Uxin leverages advanced pricing algorithms and real transaction data to maintain competitive pricing and enhance vehicle-level profitability.
4. Customer Acquisition and Long-Term Growth
New superstores will drive customers through brand awareness, online traffic, marketing campaigns with local government support, and partnerships with automotive platforms. As stores mature, increased walk-in traffic and referrals will lower acquisition costs, supporting a long-term goal of over 3 million annual transactions across 200+ cities.