New tax on car licence discs, and WeBuyCars loses R12.9 billion

People who commute from Pretoria to Johannesburg are travelling roughly 120km every day, or over 2,400km every month.

Following October’s fuel price adjustments, these motorists are now spending anywhere from R3,630 to R7,989 per month to get to work, depending on their car’s fuel efficiency and whether they use petrol or diesel.

Some motorists also have to contend with toll plazas, such as those on the Stormvoel and Zambezi off-ramps, which charge between R12.50 and R15.00 per car, adding over R500 to monthly travel expenses.

Meanwhile, global oil prices have declined as flows from the Middle East increased and the US claimed that Russia and Ukraine have agreed to an “energy ceasefire.”

Brent Crude dropped to $103 per barrel, though prices remain high after Saudi Arabia’s main airport was targeted again and a tanker was attacked in the Strait of Hormuz.

5 important things

New tax on car licence disc renewals in South Africa: The Road Accident Fund is exploring new ways to raise revenue, including a fuel levy hike and a new tax on vehicle registrations and licence disc renewals. The RAF is funded by fuel levies but is technically insolvent with hundreds of billions of rands in debt [TopAuto].

WeBuyCars loses R12.9 billion: WeBuyCars’ share price has dropped 54.3% over the last year with its market cap falling by R12.9 billion. The company was listed on the JSE in 2024 and initially saw a 191% share gain. However, it has struggled to maintain this momentum. [Newsday].

Biggest change for South African driving licences in 28 years: The extension of South Africa’s licence cards from 5 to 10 years will be the greatest change to the system since it was introduced in 1998. Before this, the country used a folding or laminated paper document pasted inside identity booklets, which had no expiry date. [MyBroadband].

Say goodbye to these 2 cars in South Africa: Audi has discontinued two of its most affordable cars, the A1 and Q2, and does not intend to replace either. The German automaker is adjusting its business strategy to focus on its higher-margin flagship models. [BusinessTech].

China wants to ban these “dangerous” car features: China has proposed banning fully hidden car door handles and imposing new requirements for certain safety-critical functions to use physical controls. The new rules would also prohibit foldable and flexible displays in cars and introduce new safety assessments for new car features. [Bloomberg].