South African automotive giant under pressure

Motus Holdings is under severe pressure as increased competition and South Africa’s dampened consumer environment weighed on operations in its 2025 financial year.

Motus is an international importer and distributor of passenger and light commercial vehicles, and aftermarket parts. South Africa is its largest market, with other operations in the UK, Australia and Asia.

On Tuesday, 2 September, the company released its results for the year ended 30 June 2025, which revealed a subdued performance.

Motus recorded a 1% decline in revenue to R112.60 billion, while operating profit also dropped slightly to R5.48 billion.

Positively, the company’s net finance costs decreased significantly by 13% to R1.91 billion, which saw its profit before tax rise by 4% to R3.34 billion. Motus’ earnings per share increased by a modest 1% to 1,468 cents per share.

The company also made some changes to its portfolio over this period in an attempt to streamline its operations and reduce complexity. Specifically, it disposed of its Mercedes-Benz Truck and Van division in its UK Retail business. 

This reduced portfolio complexity and sharpened the group’s focus on growing its DAF business.

The proceeds of R441 million from this sale were used mainly to repay debt, against net assets of R542 million, resulting in a loss of R116 million, including R15 million in incremental disposal costs.

The company also partly attributed its decreased revenue to the loss made from this sale.

A R2.9 billion or 3% reduction in contributions from its Retail and Rental segment also contributed, although this was offset by higher contributions from other segments.

This includes R2.8 billion from its Import and Distribution (up 14%), R885 million from Aftermarket Parts (up 6%) and R83 million from Mobility Solutions (up 3%).

However, the company said its reduced revenue was mainly the result of lower contributions from new vehicle sales of R3.33 billion (6%), primarily in the group’s international operations.

In total, Motus’ passenger and commercial vehicle businesses, including the UK and Australia, sold 206,010 overall vehicle units (2024: 202,623), comprising 115,910 new units (2024: 115,899) and 90,100 pre-owned units (2024: 86,724) during the year.

The South African operations contributed 56% to revenue, with the remainder being contributed by the UK, Australia and Asia.

The company explained that the first half of its 2025 financial year was marked by economic uncertainty across the group’s operating regions, high interest rates and intensified competition.

However, it said focused management actions in the second half of the year, targeting sales, margin recovery and operational efficiency, resulted in a significant turnaround. 

This improved second-half performance bolstered the group’s overall performance.

Looking forward, Motus expects an improved financial performance, with growth in operating profit, declining finance costs and an increase in headline earnings per share.

“The improved momentum from HY2 provides a solid platform for financial year 2026,” CEO Ockert Janse can Rensburg said. 

“However, the outlook remains subject to consumer demand and the challenging macroeconomic and geopolitical environments in which we operate, which continue to reflect constrained conditions.”

Motus declared a total of 550 cents per share as a dividend for the year,  which consists of a 240 cents interim dividend and 310 cents final dividend.