Business

International giants slowly taking over major sector in South Africa

Jonathan Hoyle

 ·26 Aug 2026

Metair has reported muted growth for the latest interim period, attributed to decreased vehicle exports and pressure from overseas car brands.

Metair is a South African vehicle parts manufacturer which supplies original equipment manufacturers (OEMs).

The company produces parts such as shock absorbers and spring systems for vehicles made in South Africa.

In its latest financial results for the interim period for the six months ended 30 June, Metair reported R8.5 billion in group revenue, a 1% increase from the 2025 interim period.

Its earnings before interest and taxation (EBIT) also increased by 1%, climbing to R444 million, while HEPS rose by 11% to 72 cents per share.

Metair also reported a gross profit of approximately R1.42 billion, rising by roughly R140 million year-on-year.

The group said that South Africa’s new-vehicle market grew in the first half of the year, with vehicle sales increasing by 12.9% year-on-year.

Despite this increase in vehicle sales, South African vehicle manufacturing remains under pressure from global competition.

“Most of the increase in vehicle sales was attributable to imports from Chinese and Indian automotive brands, which continue to put pressure on the locally manufactured vehicle market,” Metair said.

The group noted that while the OEM market it supplies in South Africa benefited from increased sales, it was largely dominated by imported vehicles.

It also said that South Africa’s vehicle manufacturing sector had to compete with lower exports in the first half of 2026.

“Local OEMs also had to contend with lower vehicle exports, which declined by 7.8% year-on-year for the first six months of the year, to 181,731 units,” it said.

Overall, the country’s vehicle manufacturing volume grew by 1% year-on-year to 285,917 light and passenger vehicles.

“While conditions in the aftermarket remained challenging, signs of improvement have recently emerged,” Metair said.

Metair and AutoZone

Metair saw its revenue from the aftermarket parts and retail sector fall by 5% from the 2025 interim period.

The group said this decrease in revenue was “due mainly to a very competitive market, especially in batteries.”

Despite the drop, aftermarket revenue in Africa increased by 6% to approximately R1.9 billion, aided by AutoZone’s turnaround.

AutoZone is one of South Africa’s largest vehicle parts retailers, operating approximately 180 stores nationwide.

Metair purchased AutoZone at the end of 2024 and has been working on a turnaround strategy to make the business profitable.

Metair said that the turnaround efforts for the retailer are going well, despite the plans being six months behind schedule.

“While progress at AutoZone remains approximately six months behind expectations, the new management team is making good progress in returning it to profitability,” it said.

AutoZone contributed roughly R930 million in revenue to the Metair group and recorded a loss before interest and tax of R21 million, excluding restructuring costs.

“AutoZone achieved an important milestone in its recovery, delivering monthly profitability from May 2026,” Metair said.

“Management remains focused on maintaining this trajectory through the second half of the year and on rebuilding revenue toward the margin targets previously communicated in the medium term.”

First Battery, another retailer owned by Metair, saw its revenue increase by 1% year-on-year in the 2026 interim period to R928 million.

Metair attributed First Battery’s slow growth to “challenging market conditions”, with consumers currently preferring more affordable B-range batteries.

“First Battery’s profitability remains exposed to input cost and pricing cycles, as well as changing market preferences toward the more affordable B-range batteries,” the group said.

First Battery also struggled due to labour strikes by the National Union of Metalworkers of South Africa (NUMSA) during the latest interim period.

“The strike was suspended on 23 July 2026 with various unresolved issues being negotiated and now concluded,” Metair said. “The strike was limited to First Battery with no impact on the broader group.”

Metair financial results