A WeBuyCars supermarket. The group expanded its footprint by 23,6% or 2 980 parking bays after three new vehicle supermarkets were opened in the six months to March 31, 2026, including in Centurion, Witbank and Landsdowne in Cape Town.
Image: Sithunyelwe
We Buy Cars Holdings (WeBuyCars), the JSE-listed used car group, said it had to lower prices in the six months to March 31 to maintain liquidity and healthy stock turns, particularly for its cars competing with Asian brands and with competitively priced new vehicles.
The interim results on Monday showed the “proactive and necessary response” had put pressure on margins, but the buoyant new vehicle market and growing penetration of Asian brands were expected to be positive in the medium term for WeBuyCars, as these vehicles enter the used vehicle market.
“This will expand the group acquisition base and opportunity set,” WeBuyCars management said. The group expanded its physical footprint by 23.6% or 2,980 parking bays during the six months.
An interim dividend of 33 cents was declared, up 10% from last year at the same time. Headline earnings and core headline earnings of R500.1 million were 1.6% lower, with headline earnings impacted by three new vehicle supermarket openings. Revenue was up 7.8% to R14.2 billion.
Buying and selling volumes of 95,328 and 93,519 units were up 3.2% and 2.3%, respectively. Sales volumes surpassed 15,500 units in four of the last six months, culminating in a monthly sales record of 17,209 units in March, whilst in January an all-time buying record came to 17,617 units.
Management said the current trading environment was impacted by the growth in the new vehicle market, aided by the aggressive rise of competitively priced Asian brands.
This had significantly influenced consumer behaviour and heightened competition, with these brands capturing notable new vehicle market share.
“The current strength of the new vehicle market in South Africa continues to place pressure on margins across the used vehicle sector. Used vehicle prices experienced deflation in the six-month period,” management said.
Traditional manufacturers, in an attempt to regain lost ground, had responded in kind, further intensifying price competition, compressing the value differential that historically made used vehicles a more attractive choice for many South African consumers.
“The ramp-up in volumes was the result of a strategy focused on more affordable inventory, where the group’s competitive position is strongest, and the addition of new supermarket capacity,” management said.
This volume increase improved the group's market share in the second quarter. Substantial investment in land and buildings and working capital was required in the past period for expansion. Information technology and human resource costs were incurred in advance of the opening of the new supermarkets.
The Montana supermarket in Pretoria North was opened on November 26, 2025, as planned, with capacity for 1,300 vehicles;
The Lansdowne supermarket in Cape Town was opened slightly later than anticipated due to unexpected City Council delays, on January 16, 2026, with capacity for 1,300 vehicles;
The Witbank supermarket in Mpumalanga was opened on February 9, 2026, as planned, with capacity for 380 vehicles.
A lease had been signed on a property in Bloemfontein, which will accommodate about 380 parking bays. The planned opening was in August 2026.
A lease was signed for a commercial vehicle facility adjacent to the R21 highway in Centurion, Gauteng, the group's new home for its commercial vehicle business.
The rollout of Inspectify across the supermarkets over eight months was a significant operational enhancement resulting in higher quality, transparent vehicle condition reports.
A 49% equity stake in GoBid Proprietary, a digital auction platform business that specialises in accident-damaged, uneconomic-to-repair and non-runners, was acquired for R376.8m.
The deal included “a clear pathway” to potential full ownership over time, should the group elect to do so, and the acquisition formalised a long-standing operational relationship.
BUSINESS REPORT