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After overhauling its business model two years ago, Uxin Ltd. (UXIN.US) thinks it has found a new formula for success. Now it needs to gain traction for that new model as a direct online used car buyer, reconditioner and retailer – and sooner rather than later. Consumer e-commerce is now driving the rapid growth of the company’s business.
Acceleration for the new business was on display in the company’s latest quarterly earnings report, which showed strong growth for its direct used car sales both on a year-on-year and quarter-on-quarter basis. Such growth was all the more impressive as the vast majority of other consumer-facing companies in China reported sharp slowdowns in the three months to June due to massive disruptions caused by the country’s strict Covid control measures.