Motus Holdings says Chinese vehicle brands helped drive strong sales in South Africa, while sales of those brands rose sharply also in the UK and Australia.
Speaking during a briefing on the company’s financial results, CEO Ockert Janse van Rensburg said Motus’ three main markets were facing weak economic growth, but the markets continued to offer significant opportunities.
“South Africa is the real standout,” he said, noting that vehicle sales had increased by 15% over the past year despite low GDP growth and higher interest rates.
New-vehicle sales increased by R1.3 billion, or 3%, to R49.7bn. Pre-owned vehicle sales were flat at R25.4bn, while parts and accessories revenue declined by R291 million to R26.1bn. Revenue from services fell marginally by R45m to R11bn.
Motus’ full-year revenue increased by 1% to R113.5bn, supported by higher vehicle sales volumes in South Africa. This was partly offset by lower volumes in the UK’s retail commercial division and in Australia’s retail business.
Van Rensburg attributed the stronger South African vehicle market partly to the growing number of Chinese brands entering the country.
“One thing that motor companies like ourselves have to be is very agile in the current environment. When times are tough, we have to get on with it, change and pivot to where the new energy needs to be directed,” he said.
The company also reported strong growth in Chinese vehicle-brand sales in the UK and Australia. Sales increased by 300% in the UK and 44% in Australia, which Motus attributed to growing consumer acceptance and the expansion of its mobility offering.
Total cash generated from operations rose by 6% to R7.9bn. Operating profit increased by 4% to R5.7bn, while net finance costs fell by 19% to R1.5bn.
Attributable profit increased by 19% to R2.9bn. Motus declared a total dividend of R7.10 per share, up 29% on the previous year.
Motus is pursuing a multi-franchise strategy in South Africa while seeking to ensure that the approach does not disrupt its existing dealership arrangements.
“If a market like this is growing, everyone grows. Some grow faster than others, but you have to participate across the full spectrum to achieve overall market leadership,” van Rensburg said.
The company also remains focused on the pre-owned vehicle market. Lower external fleet volumes reduced revenue from vehicle rentals by R331m, as Motus adjusted vehicle allocations to improve utilisation and returns on its assets.
THE NATIONAL