The Competition Commission has referred FirstRand Bank Limited, WesBank, and Toyota Financial Services South Africa Limited (TFS) to the Competition Tribunal for prosecution on allegations of dividing the market by allocating customers or suppliers.
The commission said its investigation revealed that WesBank and TFS entered into an agreement to divide markets by allocating customers or suppliers in the market for the provision of vehicle finance in contravention of the Competition Act.
It added that FirstRand, through its WesBank division, and TFS are involved in the provision of vehicle finance services and are therefore supposed to compete.
However, the commission said the two companies concluded a shareholder agreement, which contains clauses that prevent them from competing.
It said FirstRand, TSA Investment Holdings Limited and Toyota Motor Finance (UK) PLC each has a 33.3% share in TFS.
The commission alleged that these three companies concluded a shareholder agreement that includes clauses that prohibit WesBank from offering vehicle finance to customers seeking to purchase vehicles at authorised Toyota dealerships.
“Furthermore, the agreement identifies the vehicle that WesBank is prohibited from financing, and these are the ‘new’ Toyota, Lexus and Hino vehicles and any ‘used’ vehicles sold through any authorised Toyota dealership, except McCarthy Group.
“This arrangement constitutes market division by allocating customers or suppliers in contravention of section 4(1)(b)(ii) of the Act,” it said.
The commission added that this type of collusive conduct is harmful to consumers as it deprives them of the benefits that arise from competition.
“Such agreements are inherently inimical to competition, and the commission has asked the tribunal to fine the companies 10% of their turnover,” it said.
Toyota South Africa Motors (TSAM) declined to comment.
Ghana Msibi, the CEO of WesBank Motor, said the commission has called into question the restraint clause but WesBank still believes that the joint venture is legitimate and there is no market division in any shape or form.
Msibi said WesBank is still studying the information the commission based its decision on to refer the matter to the tribunal to get a better understanding of the exact basis of the commission’s concerns.
The Kia Carens nameplate makes its return to South Africa, this time as a seven‑seater designed with families in mind. It combines Sport Utility Vehicle (SUV) styling with Multi-Purpose Vehicle (MPV) practicality, offering space, comfort and efficiency, Kia says.
Volvo has confirmed that its vehicles will now integrate Google’s Gemini artificial intelligence system. This development builds on the company’s existing collaboration with Google, which already provides Android Automotive OS and Google services in Volvo models.
New vehicle sales in 2026 continued their positive trend in April, with the 47 979 units sold marking the best April figure since 2013. This represents a remarkable performance by local automotive retailers despite a host of economic headwinds and a challenging trading environment.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Volvo has confirmed that its vehicles will now integrate Google’s Gemini artificial intelligence system. This development builds on the company’s existing collaboration with Google, which already provides Android Automotive OS and Google services in Volvo models.
New vehicle sales in 2026 continued their positive trend in April, with the 47 979 units sold marking the best April figure since 2013. This represents a remarkable performance by local automotive retailers despite a host of economic headwinds and a challenging trading environment.
April 2026 marked a turning point in South Africa’s economic landscape, as global energy markets were jolted by escalating geopolitical tensions in the Middle East, according to naamsa | The Automotive Business Council.
