SA’s top listed automotive companies — Motus, Metair and Combined Motor Holdings (CMH) — are experiencing mixed fortunes, with second-hand and new markets facing mounting pressure.
Despite strong export prospects and long-term investment plans, they have been hard hit by weak consumer demand, global trade shifts and rising competition from imports.
Motus’ share price has tumbled more than 25% this year, up just 2.9% over the past year, and 20% lower than three years ago.
Metair has had an even harder time, falling 32% in the past year and more than 70% over three years.
CMH is managing to stay steady, with its share price up 20% in the past year and 12% over three years, though trading conditions remain tough.
In contrast, WeBuyCars, which recently marked a year since its listing, has performed strongly, more than doubling its market value with a 106% gain.
Though Motus’ revenue for 2024 rose 7%, operating profit fell 4% and headline earnings per share (HEPS) dropped to 1,479c from 2,046c the previous year. Motus said it sold 512,000 new vehicles in the 2024 financial year but struggled with softer demand and margin compression.
The company is reducing reliance on new vehicle sales but still has a strong retail presence and is focusing on growth by offering new brands a route to market through its infrastructure.
Motus is eying opportunities in the pre-owned vehicle market and aftermarket parts, locally and internationally. Growth is expected to be supported by targeted acquisitions, especially in Europe and Australia.
Metair has reported a 2% decline in revenue in 2024, with operating profit down 20%. HEPS dropped to 89c. The group cited weaker demand from export markets, particularly Europe, and disruptions at major customer Toyota SA Motors due to engine certification issues.
Metair was further affected by the volatile Turkish market, leading to a R3.9bn loss on the sale of its Turkish battery business, Mutlu Akü.
The group’s acquisition of AutoZone in December marked a strategic milestone that strengthened its presence in the mobility and aftermarket sectors across the country and Sub-Saharan Africa, with access to more than 13-million local vehicles and 30-million across the continent, it said.
Metair acquired the financially troubled auto parts company after it was placed on rescue last year, saving it from a pile of debt.
The group is now focused on integrating AutoZone, driving aftermarket synergies and pursuing new growth opportunities while maintaining efficiency, managing debt and enhancing cash flow.
CMH is holding steady in contrast, but not without challenges. The group recently reported a 25.6% drop in HEPS for the year to end-February.
While revenue edged up by 3.2%, the retail and rental business segments came under pressure from low-cost imports, high interest rates, and reduced funding for taxi vehicles. CMH’s car rental arm, First Car Rental, was also hit by price wars and weaker demand.
WeBuyCars has emerged as the sector’s standout performer. The company, which marked a year since its JSE listing, more than doubled its market valuation. In its 2024 annual report, WeBuyCars posted a 16.5% increase in revenue to R23.3bn and an 18.6% increase in core operating profit.
Sales volumes reached record highs, driven by the company’s growing digital presence and platform investments. The group plans to sell and buy 23,000 units a month by the 2028 financial year.
The company is also preparing to include more popular Chinese car brands, noting that SA consumers have shown growing interest in these vehicles over the past few months. Toyota, Ford and Volkswagen remain its top sellers.
The sector at large, however, continues to face structural and cyclical headwinds. It contributes 4.3% to GDP, accounts for more than 18% of exports, and employs more than 110,000 people, according to the government. But with Morocco gaining ground in production and exports, SA is forced to act swiftly to retain its competitive edge.
According to the Automotive Business Council, new vehicle sales declined 3% in 2024, while exports plunged 22.8% due to softer demand in the EU and growing competition from Chinese electric vehicles.
Despite a modest recovery in the most recent quarter, sales remain below pre-Covid-19 levels.
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