China-based used-car retailer Uxin has announced a $23 million joint venture with Zhengzhou Airport Industry to establish a used-car superstore. The venture will be facilitated through a newly formed entity, Uxin (Zhengzhou) Intelligent Remanufacturing Co., Ltd., in which Uxin (Anhui), a wholly-owned subsidiary of Uxin, will contribute RMB120 million ($16.5 million), holding a 70% stake, while Zhengzhou Airport Industry will allocate RMB50 million ($6.8 million), amounting to a 30% stake. The investment aims to develop the auto aftermarket industry in Henan province with Zhengzhou’s strategic location and supportive business environment. Uxin’s CEO, Kun Dai, emphasized the benefits of local government support and advanced production facilities. Uxin, founded in 2018 and listed on the Nasdaq, recently secured a $34.8 million investment commitment from Xin Gao Group and NC Fund. Despite a 12.8% y-o-y revenue decline to $58 million in the third quarter ending December 2023, retail sales showed quarter-on-quarter improvement.

Automotive, Private Equity & Investment,China