New vehicle sales rebound in SA, help Motus grow half-year profit by 51%

Motus has reported a jump in profits for the half-year ended 31 December 2021.

The auto group’s revenue increased by 1% for the period to R44 823 million (from R44 343 million in 2020).

Headline earnings per share were up 51% to 795 cents per share (from 526 cents in 2020).

Motus says its increased market share has been supported by its expansion of its vehicle model range.

“…. particularly in the growing entry-level and small to medium SUV categories (due to consumers buying down), coupled with exciting new model launches”.

More than 230,000 new vehicles were sold in South Africa during the six-month period, according to the National Association of Automobile Manufacturers of South Africa (naamsa).

Entry-level cars are selling reallly well in South Africa right now

Bruce Whitfield interviews Osman Arbee, CEO of Motus.

Arbee says that, in terms of profitability, the company is back to 2019 levels.

He’s hopeful that it will be back to pre-pandemic levels for unit car sales as well by December this year.

Despite all the gloom and doom the South African economy is treating us well…. Used car sales are also doing well, so all in all a very buoyant and resilient consumer that’s behaving responsibly and buying cars, servicing cars…

Osman Arbee, CEO – Motus

Regarding global supply constraints due to a shortage of semiconductors, this is expected to last at least until July or August he says.

It’s not all doom and gloom: I may not be able to give you a black car, but I’ll give you a red car! The cars are available, but not exactly to the specifications of the consumers… but consumers are still buying.

Osman Arbee, CEO – Motus

For this country, for this year, we’re projecting over half-a-million sales. Yes there is a shortage, but cars are still coming our way, and we are selling those cars.

Osman Arbee, CEO – Motus