JSE-listed vehicle retailer Motus is expanding its portfolio with plans to bring Tata cars to South Africa this year. The partnership will boost the Indian brand’s presence in the market and increase the Motus portfolio.
Motus CEO Ockert Janse van Rensburg said the group will be Tata's exclusive importer of passenger vehicles into South Africa and neighbouring countries.
“Its quite a nice coup for us. Tata was here a few years ago — maybe the quality wasn’t that great but the brand has changed completely and is the third-biggest brand in India. We landed a very big fish. It’s a key brand for us.”
Motus is the exclusive distributor in South Africa of Hyundai, Renault, Kia and Mitsubishi. Hyundai is India's second-biggest vehicle brand behind Suzuki.
“This is exciting for us. We will be bringing in the No 2 and No 3 brands from India.”
Janse van Rensburg said the quality of Indian brands “has picked up in the past decade and “it's something you can work with”.
He said Motus was still deciding which Tata models to import.
“There's quite a big range on the passenger side. We'll bring in maybe four derivatives initially and see how the market reacts. The timing is a bit uncertain, probably towards the middle of the year,” he said.
Motus sells one in five of new passenger vehicles in South Africa. It also operates in Australia and the UK.
The company's new car sales in South Africa are under pressure, hurt by the slowdown in consumer demand in the first quarter, strong competition from Asian brands, as well as consumers buying down to entry-level vehicles or opting for pre-owned vehicles, which is affecting the mix of vehicles sold.
Janse van Rensburg said there is “a bit of turning point realisation” from importers and Hyundai and Kia woke up to the fact that they needed to reposition their products and introduce new models that catered to different market segments, to appeal to evolving consumer preferences. He said carmakers are offering a range of vehicles at various price points to attract a broader customer base. “They are trying to win back some of that market share.”
According to a report by TransUnion, in the last quarter of 2024 Mahindra, Chery and Suzuki recorded the highest year-on-year growth in new passenger and light commercial vehicle sales — with increases of 37.4%, 23.7% and 22%, respectively. New entrants, including Chery sub-brands Omoda and Jaecoo, and BAIC gained traction, while Nissan, Mercedes-Benz, Renault and BMW recorded year-on-year declines.
The demand for used vehicles continues to grow, while we’re also seeing an increasing shift towards alternative financing and ownership models, such as leasing and car subscriptions, particularly among younger consumers
— Marcia Mayaba, sales vice-president for auto information services at TransUnion South Africa
Commenting on the Chinese brands, Janse van Rensburg said, “It's early days. There are one or two doing better than others. We certainly believe there will be some winners and some losers among the new entrants.”
Motus also sells pre-owned vehicles, car rentals through Europcar and Tempest, as well as car parts. Sales of pre-owned cars was 1% down to 32,473 in the six months to December.
TransUnion said new vehicle prices increased by 1.7% due to supply chain constraints and production costs, while used vehicle prices declined by 2.8%, making them more attractive for cost-conscious buyers. Financing for pre-owned vehicles was outpacing new car financing at a ratio of 1.56 to 1 in the fourth quarter of 2024, up from 1.23 in the same period the previous year.
“South Africa’s automotive sector is navigating a complex landscape, balancing economic improvements with persistent affordability challenges,” says Marcia Mayaba, sales vice-president for auto information services at TransUnion South Africa.
“The demand for used vehicles continues to grow, while we’re also seeing an increasing shift towards alternative financing and ownership models, such as leasing and car subscriptions, particularly among younger consumers.”
Janse van Rensburg said the entry of new brands “certainly has helped with the affordability for consumers, as everyone is trying to have the best prices available”.
“So you're probably going to find there's not going to be that much price inflation in the vehicle market, and that prices will remain pretty much at the same level.”
Motus's half-year revenue decreased by 2% to R56.1bn, mainly as a result of reduced contributions from new vehicle sales of R1.9bn. This was offset mainly by increased contributions from pre-owned vehicle sales of R629m and parts and other goods sales of R224m.
South African operations contributed 55% to revenue. Operating profit was down 4% to R2.5bn.
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