We Buy Cars Holdings’ share price has fallen 42.79% year-to-date. The decline has erased R8.62 billion in market value.
The company faces growing competition from low-priced new cars made by Chinese manufacturers. Their affordability is drawing customers away from South Africa’s secondhand-car market, a sector WeBuyCars has relied heavily on.
To defend market share, WeBuyCars has lowered prices, squeezing profit margins. Investors are concerned about the company’s ability to adapt to the shift in the automotive market.