South African motorists are feeling the impact of a flood of inexpensive Asian‑manufactured cars, and the ripple effects are now being felt on the used‑car market led by WeBuyCars. The group, founded by brothers Faan and Dirk van der Walt and valued at R14.7 billion, reported a slip in headline earnings for the six months to March 2026 as cheaper new‑vehicle options reshaped buyer behaviour across the country.
The half‑yearly results show operating profit falling to R701 million from R730 million a year earlier, while headline earnings eased to R500 million from R508 million. Management attributes the squeeze to a “continued challenging and deflationary trading environment”, underscoring that costs are climbing faster than revenue.
A key driver of the headwinds is the 15.7 % surge in new‑vehicle sales in 2025, largely powered by aggressive pricing and attractive finance offers from Asian manufacturers. These entrants have carved out a sizable slice of the market, forcing used‑car prices down and extending the time cars sit on the lot – inventory days rose from 28.9 to 33.2 during the period.
Despite the pressure on margins, WeBuyCars still managed to grow its top line. Group revenue climbed 7.8 % to R14.2 billion, and both buying and selling volumes nudged higher, with 95 328 units purchased and 93 519 units sold. The company celebrated record monthly volumes, hitting 17 209 units sold in March 2026 and 17 617 units bought in January 2026.
WeBuyCars performance 2026: growth plans remain on track
The firm’s expansion strategy appears resilient. Three new supermarkets – the company’s term for its high‑throughput vehicle hubs – have opened, pushing the national footprint to 2 980 parking bays, a 23.6 % increase. This rollout supports the medium‑term ambition of handling 23 000 vehicles a month by FY 2028.
A lease for a 380‑bay site in Bloemfontein is set to go live in August 2026, marking WeBuyCars’ first significant foray into the Free State, a region previously underserved. In Gauteng, a commercial‑vehicle facility adjacent to the R21 in Centurion will become the new base for the group’s light‑truck division.
Shareholders were rewarded with a gross interim cash ordinary dividend of 33 cents per share, up from 30 cents a year ago, signalling confidence in the longer‑term outlook despite short‑term challenges.
| Metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue (R m) | 14 155 | 13 134 | +7.8 % |
| Basic Earnings (R m) | 499.3 | 507.0 | (1.5 %) |
| Headline Earnings (R m) | 500.1 | 508.2 | (1.6 %) |
| ROIC (%) | 30.1 % | 47.6 % | (‑17.5 pp) |
| ROE (%) | 21.0 % | 26.7 % | (‑5.7 pp) |
| Units Bought | 95 328 | 92 339 | +3.2 % |
| Units Sold | 93 519 | 91 392 | +2.3 % |
| Inventory Days | 33.2 | 28.9 | (+14.9 %) |
The table highlights a mixed picture: revenue and unit volumes are up, yet profitability ratios have slipped sharply, reflecting the cost pressures and longer stock holding periods caused by the influx of cheap new cars.
Looking ahead, WeBuyCars is banking on geographic expansion and the capital‑light supermarket model to dilute the impact of a tighter used‑car market. The Bloemfontein and Centurion sites are expected to bolster volume and diversify the product mix, especially in the commercial‑vehicle segment.
While the cheap‑Asian vehicle wave continues to reshape consumer preferences, the group’s strategic investments suggest it intends to stay ahead of the curve. By bolstering its footprint and maintaining a focus on high‑volume, low‑margin operations, WeBuyCars aims to protect its market share and deliver steady returns for shareholders, even as the broader automotive landscape evolves.