Automotive group Motus, which imports and sells cars and has a vehicle-rental business, forecast a healthy jump in interim profit and said it’s its increasing its rental fleet to benefit from a recovery for SA’s battered tourism industry.
Motus, which was unbundled from Imperial Holdings and listed on the JSE in 2018, said on Thursday headline earnings would rise by at least 20% in the six months to end-December, adding it has gained market share as vehicle sales recover.
Increased market share to date has been supported by an expansion of its vehicle range, the group said, particularly in the growing entry level and small-to-medium SUV categories, coupled with new model launches.
While vehicle supply remains erratic as a result of supply-chain disruptions and a global chip shortages, Motus said its extensive range of models enabled it to focus on available stock.
“While there are shortages of certain derivatives at different times, we are still able to offer the customer a wide selection of brands and models,” it said. Still, spare parts are a concern, and the company is talking to various suppliers and using airlines for emergency supplies.
Management projects annual new vehicle sales at 440,000 to 460,000 in 2021, compared with 380,000 in 2020.
The group said it was also looking to increase its rental fleet to about 15,500 vehicles during December with utilisation above 70% as local and international travel picks up for the summer tourism season.
The fleet currently comprises 14,000 vehicles compared with 9,000 in the midst of the Covid crisis, it said.
Motus’s stock was up 0.98% at R106.50 by the JSE’s closehaving jumped more than 90% so far in 2021, and by more than 30% since the start of 2020.
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