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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Business»WeBuyCars navigates market shifts amid rising competition from Chinese brands

    WeBuyCars navigates market shifts amid rising competition from Chinese brands

    0
    By Tapiwa Matthew Mutisi on November 17, 2025 Business, Cars, Financial report, Transportation, Vehicles

    WeBuyCars has faced headwinds from the growing presence of value-driven Chinese automotive brands in South Africa. However, the company remains optimistic, viewing these developments as a catalyst for long-term growth opportunities. Despite market challenges, WeBuyCars continued its upward growth trajectory. Group revenue climbed 13.1% year-on-year, reaching R26.4 billion.

    Vehicle trading volumes also surged, with 180,576 units purchased (up 7.7%) and 179,006 units sold (up 8.4%). Sales momentum remained strong throughout the year, highlighted by a record-breaking 16,294 units sold in November 2024. Over the past 12 months, monthly sales exceeded 15,000 units on six occasions, reinforcing the group’s expanding market share.

    The company acknowledged structural changes within South Africa’s automotive sector, driven by the strength of the new vehicle market and aggressive pricing strategies from Chinese brands such as GWM and Chery. These brands have captured significant market share through affordable pricing and attractive new-vehicle offerings, influencing consumer purchasing behavior.

    While these trends created short-term margin pressure, WeBuyCars sees a strategic upside: as these vehicles enter the used-car market, they will broaden the company’s acquisition base and growth potential. To remain competitive, WeBuyCars adjusted its pricing strategy during the second half of the year. This proactive move ensured liquidity and healthy inventory turnover but temporarily compressed margins.

    Expansion and Infrastructure Development

    The group continued to strengthen its national footprint. Two new supermarkets were launched:

    • Rustenburg (October 2024) – 300 parking bays
    • Vereeniging (August 2025) – 550 parking bays

    Both locations have delivered encouraging results since opening. Additionally, facility upgrades remain a priority:

    • Relocation of Pietermaritzburg supermarket to a larger site
    • Expansion projects at George, Polokwane, Mbombela, the Dome, Riverhorse Valley, Gqeberha, and Germiston

    By September 2025, national capacity grew to 12,911 parking bays. Upcoming openings in Montana (Pretoria North) and Lansdowne (Cape Town) are expected to boost capacity by over 20%.

    Core headline earnings rose 15.0% to R937.6 million, driven by:

    • Higher trading volumes
    • Improved average selling prices
    • Strong net insurance performance
    • Lower finance costs and operational efficiencies from economies of scale

    Although share issuance during 2024 diluted earnings per share, headline EPS still surged over 100% to 937.6 cents. The company increased its final dividend by 50% to 30 cents per share, bringing the total dividend to 55 cents per share. Its dividend policy remains to distribute 25%–33% of headline earnings, subject to working capital needs.

    WeBuyCars plans to expand responsibly across South Africa, capitalizing on short- to medium-term opportunities while positioning for sustained growth. The company believes the influx of Asian brands will ultimately strengthen the used-car market, creating new avenues for acquisition and profitability.

    MetricUnit20252024% Change
    Units boughtNumber180 576167 7417,7
    Units soldNumber179 006165 1858,4
    RevenueRm26 377,223 319,213,1
    Core headline earnings (i)Rm937,6815,415,0
    Core headline earnings per share (i, ii)Cents224,6217,43,3
    Basic earningsRm935,4343,1> 100
    Basic earnings per share (ii)Cents224,191,5> 100
    Headline earningsRm937,6343,9> 100
    Headline earnings per share (ii)Cents224,691,7> 100
    Final cash dividend per shareCents302520,0
    WeBuyCars unveils AI tools “Blue” and “Orange” to drive future growth

    Related

    Africa Automotive industry brands Business Cars Financial statement GW GWM Investments South Africa Technology Transportation Vehicles Webuycars
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 6,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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