WeBuyCars has taken a hit due to the arrival of new, value-for-money Chinese car brands in the country.
However, it believes this is only a temporary setback and that in the long term these new brands will be of great benefit.
This is based on its results for the financial year ended 30 September 2025.
The report showed that the group saw a revenue increase of 13.1% to R26.4 billion, and buying and selling volumes rose by 7.7% and 8.4% respectively, bringing the total for each to 180,576 and 179,006 units.
Additionally, the number of vehicles bought and sold continued to grow, with the figures reaching an all-time monthly record of 16,294 units in November 2024.
That said, the group indicated that it was experiencing market pressures due to shifts within the South African automotive industry.
Central to this is the prevalence of the new Chinese brands, with the competitive pricing of makes such as GWM and Chery, impacting customer behaviour.
“These brands have captured notable market share through attractive pricing and compelling new-vehicle offerings,” said the group.
While this may initially hurt WeBuyCars, the group noted that these new brands will benefit it in the long run, as these new vehicles will also eventually enter the second-hand market.
However, in the meantime, the group has adjusted its pricing to maintain liquidity and ensure healthy inventory turnover.
“This proactive measure placed short-term pressure on margins during the second half of the year.”
Financial goals
The group has indicated that it continues its long-term growth trajectory, with the core result being the 15.0% to R937.6 million.
The chief drivers of this growth in earnings were higher volumes, average selling prices and net insurance results, as well as lower finance costs and cost efficiencies driven by economies of scale.
The group also stated that it issued new shares through 2024, which hurt both headline and core earnings per share.
That said, the group’s share price did increase by over 100% to 937.6 cents per share.
The company’s dividend policy is to declare a dividend of between 25% and 33% of its headline earnings, subject to working capital requirements.
The group upped its final dividend by 50% to 30 cents per share, with the final dividend reaching 55 cents per share.
WeBuyCars also noted that it plans to expand its footprint across South Africa and believes there are opportunities to be capitalised on in both the short and medium terms.
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