Automotive group Motus will amplify multi-franchising to save some traditional vehicle brands struggling because of increased competition from Asian cars.
Motus sells new and pre-owned vehicles, rents vehicles through Europcar and Tempest, and provides service and maintenance. It also sells car parts.
Several traditional brands like Audi and VW continue to face margin pressure as consumers switch to pre-owned vehicles and new vehicle brands from Asian manufacturers. This has resulted in a number of loss‑making dealerships, forcing Motus to restructure its South African retail unit.
CEO Ockert Janse van Rensburg said multi-franchising would continue as new brands enter the market and also to boost the growth of some traditional brands. Multi-franchising refers to housing different brands under one dealership.
“We have been multi-franchising for about five years, and this was triggered by the entry of new brands. If you bring new entrants into the existing environment, normally it’s difficult for a brand to be standalone, and the only way to make it viable is multi-franchising with another brand,” he said.
“Over the years we have been successful in this … and it’s part of the reason why South African retail operating profit increased 22%."
Motus’s trajectory continues to demonstrate its resilience amid challenging trading conditions and intensifying competition, further validating the group’s strategies of diversification and geographical presence
— Ockert Janse van Rensburg, Motus CEO
Having multiple brands under one facility has boosted the number of dealerships over the years.
Of the traditional brands, Hyundai, Kia and Toyota “were the star performers in our stable”, while VW, Audi, Nissan and, to a lesser extent, Ford had a difficult period as market share reduced dramatically over the last five years.
There are multi-franchising opportunities for Ford and Nissan, he said.
For the six months to December 2025, Motus sold 30,191 new units, up from 25,117 in the six months to December 2024, an increase of 20%. It also sold 34,529 pre-owned units, up 6% from the previous period. Motus has 337 dealerships in South Africa.
Despite an increase in Motus pre-owned vehicle sales, Janse van Rensburg said the pre-owned vehicle industry as a whole is under pressure due to high new vehicle volumes.
“If new vehicles are selling that well, obviously it does put more pressure on pre-owned,” he said.
The industry continues to “face persistent margin pressure and the expansion of affordable emerging brands in the new vehicle market”.
Last year the local automotive market recovered above 2019 pre-pandemic levels and reached volumes not seen in a decade, with new vehicle sales of 596,818 vehicles.
The year-on-year increase was “primarily driven by the growth in the passenger vehicle market, supported by interest rate cuts, resilient consumer sentiment, below-inflation selling price increases, compelling value propositions, an increase in the number of first-time buyers and pent-up demand from prior periods,” said Motus.
As affordability remains a key consideration, customers continue to shift away from luxury vehicles in favour of more affordable brands, models and vehicle segments, while also opting to retain vehicles for longer. Extending the ownership of the vehicle is also boosting the Motus aftermarket car parts business, which includes Midas.
To drive sales, Motus has implemented a new initiative to expand the business into new informal underserved customer channels, which has contributed positively to the segment’s performance. It has signed 1,400 car mechanics to buy directly at its stores and has designed a special payment solution.
Commenting on the outlook, Janse van Rensburg said: “Motus’s trajectory continues to demonstrate its resilience amid challenging trading conditions and intensifying competition, further validating the group’s strategies of diversification and geographical presence.”
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