WeBuyCars has lost R12.9 billion in market value over the past year after its share price fell 54.3%, as cheaper new Chinese vehicles draw buyers away from the used-car market and squeeze the dealer’s margins.
The fall has cut the group’s market capitalisation from R23.75 billion to R10.85 billion, according to Newsday, reversing much of the gain made after it listed on the main board of the JSE in April 2024.
The shares rose 191% in the first 15 months of trading, from R20.50 to R59.75, as investors backed the dominant player in the second-hand car market. Founded in 2001 by brothers Faan and Dirk van der Walt, the business was 74.9% owned by Transaction Capital before it was unbundled and listed.
WeBuyCars at a glance
| Metric | Figure |
| Market value a year ago | R23.75bn |
| Market value now | R10.85bn |
| Share price change, past year | -54.3% |
| Revenue, six months to March 2026 | R14.2bn (+7.8%) |
| Adjusted EBITDA | R789.5m (-1.3%) |
| Core headline earnings | R500.1m (-1.6%) |
| Vehicles sold, six months | 93,519 (+2.3%) |
| Parking bays | 15,614 (+31%) |
| Average selling price | R148,000 |
| Target by 2028 financial year | 23,000 vehicles a month |
Sources: Newsday, WeBuyCars interim results via Daily Investor
Interim results for the six months to 31 March 2026 showed a gap between growth and profitability. Revenue rose 7.8% to R14.2 billion and the group sold 93,519 vehicles, 2.3% more than a year earlier. Adjusted EBITDA, however, fell 1.3% to R789.5 million and core headline earnings slipped 1.6% to R500.1 million, or 119.7c a share. Parking bays across its 20 supermarkets rose 31% to 15,614, meaning capacity grew far faster than sales.
The company has said affordable Asian brands, backed by aggressive pricing and finance deals, took significant new-vehicle market share, and established manufacturers cut prices in response. That narrowed the price gap that has historically made used cars the better-value option. WeBuyCars lowered its own selling prices, particularly on vehicles competing with Asian models. Chinese and Indian brands now account for about 55% of new passenger vehicles sold locally, according to Currency.
Other pressures have added to the strain. FNB has pointed to the group’s exposure to interest rates and economic downturns, citing the recent Reserve Bank rate increase and record fuel prices, as well as consumer complaints about mechanical faults and after-sales service. Sentiment was also hit when the founders sold R866 million worth of shares in February.
The slide has come in stages. Between 23 January and 11 May this year the shares fell 31%, from R52.85 to R36.51, and Oyster Catcher Investments noted that they later traded as low as R25. Operating profit for the interim period fell 4% to R701 million, even as the group set a record of 17,209 vehicle sales in March. It still raised its interim dividend by 10% to 33c a share. The group employs 3,722 people and runs 109 buying pods. Transaction Capital first bought a 49.9% stake for R1.84 billion in September 2020.
Some analysts argue the sell-off has gone too far. Mark du Toit of Oyster Catcher Investments told Business Day TV that the business model remains intact, that the fall in inventory values is largely complete and priced in, and that the group earns a margin on every unit at an average selling price of R148,000. With its capacity rollout finished, he expects earnings to return to growth as the group fills its bays.
Management has made a similar case, saying Chinese vehicles will flow into the used market after a two- to three-year lag. Chinese brands already make up about 5% of the vehicles it trades, and the group says it is on course for its target of buying and selling 23,000 vehicles a month by its 2028 financial year, up from about 15,500 now.