South African used-car giant WeBuyCars is facing pressure from an influx of cheaper Asian vehicles into the country, shifting local buying habits and squeezing the used-car market.
The group, founded by brothers Faan and Dirk van der Walt, which currently has a market cap of R14.7 billion, recorded a drop in headline earnings, with operating profit dropping by 4.0% for the six months ending March 2026
The company saw its six-month operating profit drop to R701 million from R730 million the year before. Meanwhile, headline earnings dropped to R500 million from R508 million in the same period last year.
The figures suggest that the cost of doing business is rising faster than revenue growth. The group noted that it is in the context of a “continued challenging and deflationary trading environment”.
This stands in strong contrast to the buoyant trading conditions experienced in the prior period, it said.
It added that core headline earnings were also impacted by the opening of three new supermarkets, “following a drive to invest ahead of the curve to secure expansion in key strategic areas”.
However, a notable pressure point flagged by the group is that the current trading environment has been impacted by growth in the new-vehicle market, which rose 15.7% in 2025.
This was thanks in large part to the aggressive rise of competitively priced Asian brands, which have significantly influenced consumer behaviour and heightened competition.
These brands have captured a notable new market share through attractive pricing and compelling finance options, the group said, which has, in turn, put pressure on margins in the used-car market.
Used vehicle prices deflated over the six-month period, while inventory days increased from 28.9 to 33.2, suggesting vehicles remained on the floor longer before being sold.
Other notable pressure points in the results are the group’s capital efficiency, with Return on Invested Capital (ROIC) falling from 26.7% to 21.0%, and Return on Equity (ROE) dropping from 47.6% to 30.1%.
Growth plans remain on track
Despite the pressure, the group’s other salient features show positive signs.
Group revenue increased by 7.8% to R14.2 billion, while buying and selling volumes were up 3.2% and 2.3% to 95,328 and 93,519 units, respectively.
“Sales volumes surpassed 15,500 units in four of the last six months, culminating in an all-time
monthly sales record of 17,209 units in March 2026,” it said.
January 2026 delivered an all-time buying record of 17,617 units, it added.
“These recent milestones demonstrate the growing scale, reach and operational capacity of the group and reinforce the group’s growth momentum.”
WeBuyCars added that the tougher trading conditions have also not impacted its longer-term growth strategy.
The group is expanding its supermarket offerings, with three new openings taking its national footprint to 2,980 parking bays, up 23.6%.
These additions are consistent with the group’s stated footprint expansion programme and support the group’s medium-term volume aspiration of buying and selling 23,000 vehicles a month by FY2028.
“Progress towards this milestone remains on track,” it said.
Looking ahead, the group said that it will continue to build out its geographic footprint, with a lease being signed on a property in Bloemfontein, which will accommodate approximately 380 parking bays.
The group is planning to open this capital-light supermarket in August 2026.
“This addition will establish a meaningful presence for the group in the Free State, extending the WeBuyCars network into a market that has historically been underserved by the group,” it said.
It added that it has also recently signed a lease for a commercial vehicle facility adjacent to the R21 highway in Centurion, Gauteng, which will serve as the group’s new home for its commercial vehicle business.
The group declared a gross interim cash ordinary dividend of 33 cents per ordinary share, up from 30 cents per ordinary share in the same period last year.
| Six Months Ended March 2026 | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue (Rm) | 14,155 | 13,134 | 7.8% |
| Basic Earnings (Rm) | 499.3 | 507.0 | (1.5%) |
| Headline Earnings (Rm) | 500.1 | 508.2 | (1.6%) |
| ROIC (%) | 30.1% | 47.6% | (17.5pp) |
| ROE (%) | 21.0% | 26.7% | (5.7pp) |
| Units Bought (n) | 95,328 | 92,339 | 3.2% |
| Units Sold (n) | 93,519 | 91,392 | 2.3% |
| Inventory Days (n) | 33.2 | 28.9 | (14.9%) |
