Staff Writer
WeBuyCars Holdings Limited says the rapid growth of South Africa’s new vehicle market and the rise of lower-priced Asian vehicle brands are putting pressure on the used vehicle sector.
In its interim financial results for the six months ending 31 March 2026, the company said the new vehicle market grew by 15.7% during the 2025 calendar year, increasing competition across the motor industry.
The company said Asian vehicle brands continue gaining market share through lower prices and attractive finance offers, forcing traditional vehicle manufacturers to respond with discounts and promotions.
“This has significantly influenced consumer behaviour and heightened competition,” the company said.
WeBuyCars said the strong new vehicle market continued placing pressure on used vehicle prices, which declined during the reporting period.
The company explained that traditional manufacturers trying to recover market share from Asian brands increased price competition, reducing the price gap between new and used vehicles.
To maintain stock turnover and liquidity, WeBuyCars lowered prices on vehicles competing directly with lower-priced Asian brands and competitively priced new vehicles.
The company described the decision as “a proactive and necessary response”, although it added pressure on profit margins.
Despite the difficult trading environment, group revenue increased by 7.8% to R14.2 billion compared to the same period last year.
Vehicle buying and selling volumes also increased. The company bought 95 328 vehicles and sold 93 519 vehicles during the six-month period.
WeBuyCars said it passed monthly sales volumes of 15 500 units in four of the last six months. In March 2026, the company recorded a monthly sales record of 17 209 vehicles, while January 2026 became its highest monthly buying period, with 17 617 vehicles purchased.
The company said growth in volumes came from a more disciplined buying strategy focused on affordable vehicles, in which it believes it remains most competitive. Additional supermarket capacity also supported growth.
Headline earnings and core headline earnings declined by 1.6% to R500.1 million as the company continued operating in what it described as a difficult and deflationary market environment.
Earnings were also affected by investments linked to three new supermarket openings, including spending on land, buildings, working capital, technology and staff.
Despite the pressure, management said it remains positive about the medium-term outlook.
The company believes the growing number of Asian vehicle brands entering the market will eventually benefit WeBuyCars as more of those vehicles enter the used vehicle market in future.
