WeBuyCars is under growing pressure as affordable Chinese vehicles attract South African buyers who would traditionally have opted for used cars.
The JSE-listed used-car dealer recently hit a new 52-week low, with its market value falling by about 45% over the past year, according to Daily Investor.
Chinese brands have become increasingly competitive in South Africa, offering new vehicles with attractive pricing and high levels of technology. This has narrowed the price gap between new and used vehicles, putting pressure on WeBuyCars to lower prices and protect sales.
Standard Bank data shows just how quickly the trend is changing. Among buyers under 35, financed purchases of Chinese vehicles increased by 423% between 2021 and 2025, with these cars now accounting for 11% of vehicles bought by the age group. Nearly 68% of young buyers choosing Chinese brands buy them new.
The shift has already affected WeBuyCars’ margins. The company previously acknowledged that the strength of the new-car market and the rise of competitively priced Chinese brands had influenced customer behaviour and increased competition.
However, WeBuyCars sees a potential opportunity in the longer term. As Chinese vehicles enter the second-hand market, the company could add more of these models to its inventory and compete directly with newer vehicles.
The challenge will be determining how well Chinese cars retain their value — something that could have a major impact on the future of the used-car market.
For now, investors are watching to see whether WeBuyCars can turn the changing automotive landscape into an opportunity rather than a threat.
Main Image: Moneyweb
