WeBuyCars under fire from a new enemy

South African used car giant WeBuyCars is facing stiff competition from the rise in popularity of relatively cheap new Chinese vehicles. 

This has led some of the company’s typical buyers to opt for new cars rather than shop for used alternatives, due to the attractive pricing of Chinese vehicles. 

However, while this is negatively impacting WeBuyCars’ performance now, the company expects this headwind to turn into a tailwind in the future. 

As these new Chinese vehicles, alongside others, are added to the used-car market, it will expand WeBuyCars’ offering and enable it to compete head-on with new vehicles. 

The company outlined this in its integrated annual report for the 2025 financial year, which detailed a strong performance. 

WeBuyCars managed to grow its headline earnings by 15% to R937.6 million and sell just over 179,000 cars in 12 months. 

It is also in the midst of an aggressive expansion plan, with it now having 18 vehicle ‘supermarekts’ and over 100 buying pods across South Africa. 

This came in a difficult operating environment, characterised by South Africa’s low economic growth, high unemployment, and elevated household debt. 

One of the relatively new challenges for the company was the surging sales of new cars in South Africa amid lower inflation and interest rates. 

New vehicle registrations surged by 11.9% compared to used registrations at 1.2%, putting WeBuyCars’ sales under pressure. 

This was driven by the influx of new vehicles offered by emerging Asian and Chinese manufacturers, WeBuyCars said in the report. 

New vehicle sales from Chinese brands surged by 74.4% year-on-year, while other cheap Asian brands, such as Suzuki, grew their new vehicle sales by 26.4%. 

This growth is particularly concerning for WeBuyCars as Chinese vehicles are offered at extremely attractive price points, often competing directly with used cars for value. 

As a result, some South African car buyers have pivoted towards buying these affordable new cars as opposed to acquiring a used vehicle. 

To compete, WeBuyCars said it has had to adjust selling prices on vehicles competing within these price brackets. This has placed short-term pressure on the company’s margins. 

The double-edged Chinese sword

While WeBuyCars is coming under pressure from Chinese vehicles in the immediate term, the company believes this will turn into a tailwind in the long run. 

“WeBuyCars has continued to grow market share with growth in units sold of 8.4% compared to the 1.2% growth in used vehicle registrations,” it said. 

The company said this is proof of its ability to weather short-term fluctuations in the market and adapt to changing demand from customers. 

“While more affordable Asian new vehicle offerings have presented short-term challenges, this also creates exciting long-term opportunities for WeBuyCars,” the company said. 

“An expanding vehicle parc increases the pool of vehicles entering the used-vehicle market, generating future growth potential for WeBuyCars.” 

However, this will require some adjustments from WeBuyCars, as it already implements changes to its buying and selling behaviour. 

These changes have largely centred around shifting towards more affordable, faster-moving inventory that aligns with current market demand. 

This is where WeBuyCars’ immense data collection and analysis come into its own, with it able to adapt to changing customer demand relatively quickly. 

“Our data-driven approach enables us to track these trends, monitor pricing, and strategically capture value as vehicles change hands,” it said. 

The company’s belief that new Chinese vehicles will eventually become a tailwind appears to already be materialising, as sales of used Chinese cars soar. 

Data from AutoTrader shows that Chinese brands are making significant inroads into South Africa’s used-car market and are rapidly catching up to more established players. 

AutoTrader’s latest pricing and mileage figures highlight a decisive shift in buyer behaviour as Chinese brands convert doubters into shoppers. 

Chinese brands such as Chery, Haval and Omoda now offer vehicles that are just as good as their counterparts from legacy automakers.  

In many cases, they still undercut competitors on price while offering more equipment, with no shortfall in quality, safety or driving experience, AutoTrader said.

While these vehicles are selling strongly on the new-car market, they are becoming increasingly popular on the used-car market.