Motoring

WeBuyCars hit by new Chinese threat in South Africa

Luke Fraser

 ·17 Nov 2025

WeBuyCars has taken a hit from the arrival of value-for-money Chinese car brands, but believes it will see long-term benefits from these brands in the future. 

In its results for the year ended 30 September 2025, the group said that it continued its long-term growth trajectory. 

The group saw group revenue increase by 13.1% to R26.4 billion. Buying and selling volumes of 180,576 and 179,006 units were up 7.7% and 8.4%, respectively.

The number of vehicles bought and sold continues to grow, with sales volumes reaching an all-time monthly record of 16,294 units in November 2024.

With monthly sales volumes exceeding 15,000 units in six of the last 12 months, the group has continued to gain market share.

However, the group acknowledged that it experienced market pressure due to structural shifts within the South African automotive industry. 

The strength of the new vehicle market and the pricing competitiveness of Chinese brands, including GWM and Cherry, impacted consumer behaviour. 

“These brands have captured notable market share through attractive pricing and compelling new-vehicle offerings,” said the group. 

Nevertheless, it said that the buoyant new vehicle market and the growing penetration of Asian brands will be a long-term positive for the group. 

It said that these vehicles will enter the used-vehicle market in the future. It will also expand the group’s acquisition base and opportunity set.

To maintain liquidity and ensure healthy inventory turns, the group adjusted the selling prices for vehicles to compete with asian entrants.

“This proactive measure placed short-term pressure on margins during the second half of the year.” 

Elsewhere, WeBuyCars continued to expand and enhance its national footprint. 

Two new supermarkets were opened in Rustenburg in October 2024 and Vereeniging in August 2025, adding 300 and 550 parking bays, respectively.

The group said that the two supermarkets have delivered pleasing results since opening. 

It added that upgrading existing facilities also remained a priority, with the Pietermaritzburg supermarket being relocated to a larger site. 

The facilities at George, Polokwane, Mbombela, the Dome, Riverhorse Valley, Gqeberha and Germiston were also expanded. As of September 2025, the national capacity increased to 12,911 parking bays. 

The upcoming supermarket openings in Montana (Pretoria North) and Lansdowne (Cape Town) this year will increase total capacity by over 20%.

Financials

The group said that it continues its long-term growth trajectory with core headline increasing 15.0% to R937.6 million. 

The key drivers of this growth in core headline earnings were: higher volumes, average selling prices and net insurance result. 

The rise in earnings was also due to lower finance costs and cost efficiencies driven by economies of scale.

The group noted that it issued new shares through 2024, which has an unfavourable impact on basic, headline and core headline earnings per share.  

The group’s headline earnings per share did, however, increase by over 100% to 937.6 cents per share. 

The company’s dividend policy is to declare between 25% and 33% of its headline earnings as a dividend, subject to working capital requirements.

The group upped its final dividend by 50% to 30 cents per share, with the final dividend reaching 55 cents per share.  

The company said that it intends to grow its footprint across South Africa responsibly. 

The Group believes there are opportunities to capitalise on in the short to medium term.