However, Motus Chief Executive Officer, Ockert Janse van Rensburg, says the group is encouraged by improving consumer sentiment, especially in South Africa.

Ockert says despite pressure on disposable income, positive momentum and shifting consumer preferences across Motus businesses have created opportunities that align with the group’s strategy and strengths, positioning Motus favourably for future growth. Commenting on the environment in which Motus operates, Van Rensburg says elevated interest rates and fuel costs have increased the cost of vehicle ownership, further straining consumers’ disposable income.

“The prolonged economic downturn has made consumers more cautious about high-value purchases, making them price-sensitive when replacing vehicles. They are carefully weighing factors, such as new versus pre-owned vehicle options, vehicle category, vehicle brand, fuel efficiency and the timing of replacement. This trend is reflected in a growing preference for more affordable choices or extending the lifespan of their current vehicles,” he says.

Motus referred to automotive business council, naamsa, reporting that South Africa retailed 269,680 vehicles in the six months to 31 December 2024 - 1.4% higher than the prior period when 265,938 vehicles were sold. It says the group’s new vehicle passenger market share in South Africa for the six-months to end-December 2024 was 20.3%, a decline from the 23.1% market share in the prior period.

Ockert says Motus management’s forecast for new vehicle sales for the 2025 calendar year is between 525,000 and 540,000 vehicles, with naamsa forecasting the new vehicle market to improve by single digits compared to the 2024 level. He says consumer preferences have shifted towards pre-owned vehicles, a factor that has bolstered growth and competition in this market.

Ockert says the vehicle rental industry has surpassed pre-COVID revenue levels, with industry volumes recovering to 93% of pre-pandemic highs. He says a significant portion of the price increases in the vehicle rental industry were essential to offset inflationary pressures on vehicles and other costs.

Ocket says parts, workshop and service revenue continue to increase owing to the extension of vehicle replacement cycles. “The aftermarket parts sector is an essential and growing market, driven by an ageing and diverse vehicle parc with rising vehicle ownership, as well as extending replacement cycles. It remains a competitive landscape with a range of players from large distributors to informal sector suppliers, as well as online distributors,” he says.

Ockert says Motus delivered a stable performance for the six months to end-December 2024 characterised by two distinct quarters - a challenging first quarter marked by subdued economic activity across the group’s operating regions, followed by an improved performance in the second quarter owing to the interest rate reduction cycle, an improvement in business confidence, positive consumer sentiment and increasing momentum with new vehicle model launches at lower price points.

Motus reported a 2% decrease in revenue to R56.17 billion in the six months to end-December 2024 from R57.16 billion in the prior year. Operating profit decreased by 4% to R2.54 billion from R2.65 billion. Headline earnings per share increased by 3% to 681 cents from 662 cents. Motus declared an interim dividend per share of 240 cents, which is 2% higher than the 235 cent dividend declared in the prior period.

The group expects its overall financial performance to remain stable for the full year to 30 June 2025 compared to the previous year. It says key factors that may influence the economic landscapes in which it operates include uncertainty stemming from geopolitical tension, inflation, currency volatility, changes in interest rates, fuel and energy costs, as well as potential impacts of future tax legislative changes.