The WeBuyCars share price sunk by 13.57% on Tuesday after a trading update disappointed investors.
On Tuesday, 28 October 2025, the company published a trading statement for the anticipated financial results for the year ended 30 September 2025.
WeBuyCars said it was on track to report an increase in headline earnings of over 100%, with core headline earnings rising by anywhere from 12% to 17%.
However, due to the issuance of 83 million new shares over the past financial year, its core headline earnings per share are only expected to increase by between 0.8% and 6%.
The new shares, which were issued in February, March, and April 2024, also distort the basic earnings per share and headline earnings per share of the company.
This brings the total weighted average number of ordinary shares to 417,401,341 as of September 2025, compared to 375,029,205 one year ago.
The used car sales platform said the new shares were issued in terms of its pre-listing capital raise, which was approved by shareholders prior to the listing of WeBuyCars on the Johannesburg Stock Exchange (JSE).
WeBuyCars said that its basic earnings will rise by more than 100% from R343 million in 2024 to over R926 million when it releases the results next month.
As a result, basic earnings per share will also rise by more than 100%. The company expects headline earnings per share to more than double.
The update was poorly received by investors, and WeBuyCars’s share price plummeted 13.57% that same day.
Consequently, WeBuyCars’s market cap dropped from R22.5 billion on 27 October to R19.5 billion on 28 October.
WeBuyCars facing competition from China
WeBuyCars and other pre-owned vehicle trading platforms like Weelee are under pressure from Chinese car brands, which are causing a drop in sales.
TransUnion previously highlighted that Chinese cars, which are much more affordable than their counterparts from legacy brands, have skyrocketed in popularity over the last few years.
Models from brands like Chery and GWM are so much cheaper, in fact, that they often cost less than a second-hand model from a make like Toyota or VW.
For example, it’s possible to buy a brand-new Chery Tiggo 4 Pro for the same price as a five-year-old VW Polo with 74,000km on the clock.
Consumers have cottoned on to this fact, and the market has seen a major shift as people move away from the pre-owned sector back to new cars in search of a model that offers better value for money.
This, in turn, is negatively affecting companies used vehicle companies like WeBuyCars, which would otherwise be the biggest winners at a time when motorists are desperate for affordable transport.
“South Africa’s car market is shifting from luxury brands to more affordable options, driven by rising financial pressure on households,” said TransUnion.
“Consumers increasingly perceive these [Chinese] brands as offering strong value for money.”
Chinese automakers are not the only ones benefitting, mind you, as models imported from India like the Suzuki Swift have also seen a meteoric rise in popularity over the last five years.
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