Chinese carmakers have muscled their way into SA’s top 10 vehicle sellers, reflecting a shift in consumer buying patterns, according to Motus CEO Ockert Janse van Rensburg.
Van Rensburg told Business Day the local market has remained “fairly robust” in recent months, but pressure on household budgets continues to steer buyers away from premium brands to more affordable SUVs and smaller hatchbacks.
“We have seen that the new entrants coming into the market have all been able to gain market share, they have had successful launches. We have seen more Chinese SUVs being sold, and in the past few months, some of those Chinese players have now also been able to get into the top 10,” he said. “Most notable of those is GWM.”
Naamsa data showed that in August GWM and Chery featured among SA’s top 10 vehicle sales.
Van Rensburg said that while the surge of Chinese brands is reshaping the competitive local landscape, established players are holding strong, with Toyota continuing to perform well and Hyundai maintaining a place in the top five.
Motus recently partnered with Indian manufacturer Tata Motors as its exclusive distributor for passenger vehicles in SA, marking Tata’s return to the market after its 2019 exit. The partnership combines Motus’s extensive distribution network and aftersales support with Tata’s innovative and affordable vehicles, with the aim of building a strong presence for Tata locally.
The Indian carmaker is hoping to make inroads in SA’s fiercely contested space dominated by Western brands and aggressive Chinese carmakers.
Tata first entered the local passenger car market in the mid-2000s but struggled to gain traction. Buyers criticised its cars as underspecced and poorly supported compared with rivals, leaving Tata a marginal player before it eventually retreated to focus on its commercial vehicle business.
After exiting the local market in 2019, Tata admitted at its relaunch in Sandton recently that its earlier foray was unsuccessful. This time it is returning with a sharper strategy, stronger products and lessons learnt from its missteps.
The relaunch comes as Chinese brands Chery, Haval and BAIC are rapidly expanding, despite an overall stagnant car market. According to Standard Bank, these brands have grown their sales every year since 2022, intensifying competition.
SA vehicle values rose steadily through August, underpinned by resilient consumer demand, though Van Rensburg warned that exchange rate swings remain a risk given country’s reliance on imports.
New-vehicle sales in August climbed 18.7% year on year, with 51,880 units sold, the strongest monthly performance since October 2019, according to Naamsa. Passenger car sales jumped to a decade high of 36,914 units, last seen in September 2015.
Market leader
Exports also improved, despite renewed US tariff uncertainty and mounting global competition. Toyota remained the market leader with more than 13,000 units sold, while Suzuki secured second place with just under half that tally.
Despite the shift to digital in car-buying behaviour, Motus does not expect traditional dealerships to vanish. Instead, they are being adapted into multifranchise sites that reduce costs and facilitate deliveries.
“People still want to see and feel the vehicle before they buy, given its high value,” Van Rensburg said.
Premium carmakers are under pressure. Audi has previously acknowledged a sharp decline in the SA luxury market, blaming weak economic conditions, rising prices and growing competition from cost-competitive Chinese SUVs.
Motus, which already generates about 55% of its earnings from parts, aftersales services and mobility solutions, rather than outright car sales, is positioning itself to smooth out the cyclical swings in new-vehicle demand.
The group aims to lift that contribution closer to 60% in the short term, giving it a more stable earnings base.
Motus Holdings, which is valued at R19bn on the JSE, recently reported a 5% rise in headline earnings to 1,548c for the year to June, supported by a strong second-half recovery that offset a difficult start to the year.
Revenue dipped 1% to R112.6bn, mainly due to the sale of its UK Mercedes-Benz Truck and Van unit, while operating profit was broadly flat at R5.47bn.
New-vehicle sales fell, but gains in pre-owned sales, vehicle rentals, aftermarket parts and mobility solutions helped steady the performance. Cash generation improved by 60% to R5.7bn.
Motus sold more than 206,000 vehicles across SA, the UK and Australia, with SA contributing 56% of revenue and 65% of earnings before interest, taxes, depreciation and amortisation (ebitda).
Van Rensburg said the group enters the new financial year on a firmer footing, though demand and macro conditions remain challenging.
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