WeBuyCars has lost R12.9 billion in market value over the past year as competitively priced new vehicles squeeze used-car margins, highlighting a shift in South Africa’s automotive market
South Africa’s automotive market is experiencing a shift as competitively priced new vehicles, particularly from Chinese manufacturers, challenge the traditional appeal of second-hand cars. While Toyota South Africa Motors (TSAM) recorded its best-ever monthly sales in September 2026, used-car retailer WeBuyCars has come under pressure, losing R12.9 billion in market value over the past year.
Business Explainer reports that WeBuyCars’ share price fell 54.3%, reducing its market capitalisation from R23.75 billion to R10.85 billion. The decline comes as more buyers consider new vehicles offering competitive pricing, modern features and manufacturer warranties at prices that increasingly overlap with those of used cars.
The pressure on WeBuyCars highlights how changing consumer choices are affecting vehicle pricing, stock turnover and profitability across the automotive distribution chain.
Meanwhile, Chinese manufacturers continue to expand rapidly. According to Lightstone Auto data, the Chinese combined passenger-car sales reached approximately 9,900 units in September, accounting for about 22% of the 44,291 passenger cars sold that month.
The growth of brands offering competitively priced vehicles has increased pressure on established manufacturers and used-car dealers alike. This is because most consumers now prefer purchasing a new vehicle with a warranty and updated technology at a price comparable to a second-hand alternative.
This has, somehow, created a difficult pricing environment for WeBuyCars.
Reporting on the company’s interim results in May 2026, Moneyweb reported that aggressive pricing by Asian vehicle manufacturers and growth in new-vehicle sales had pressured used-car margins, forcing WeBuyCars to lower prices on parts of its inventory.
“The current strength of the new vehicle market in South Africa continues to place pressure on margins across the used vehicle sector,” the company said in its interim results.
WeBuyCars added that used-vehicle prices had experienced deflation during the six-month reporting period.
Despite the pressure on margins, WeBuyCars continued to grow revenue and vehicle sales in the six months ended 31 March 2026.
Revenue increased by 7.8% to R14.2 billion, while the company sold 93,519 vehicles, representing a 2.3% increase year on year. However, adjusted earnings before interest, tax, depreciation and amortisation declined by 1.3% to R789.5 million, while core headline earnings fell by 1.6% to R500.1 million.
The results illustrate the distinction between growing sales volumes and generating stronger profits. Lower selling prices may help a dealer maintain stock turnover and remain competitive, but they can also reduce the margin earned on each vehicle.
WeBuyCars said it had adjusted selling prices, particularly for stock competing with affordable new vehicles, to maintain liquidity and healthy inventory turnover.