Motus reports 4% decline in operating profit

South African automotive group, Motus Holdings, has reported a mixed performance for the first half of its 2025 financial year, facing a challenging first quarter due to economic slowdowns but following it with a strong recovery in the second quarter. Despite a 2 per cent decline in revenue and a 4 per cent drop in EBITDA, the second quarter saw improved performance thanks to increased business confidence, lower interest rates, and rising vehicle sales momentum. In an exclusive interview with CNBC Africa, Motus CEO, Ockert Janse van Rensburg, provided insights into the company's strategies and outlook amidst the evolving market dynamics. With a focus on maintaining profitability across various revenue streams, Van Rensburg highlighted the importance of balancing new and used vehicle sales to effectively manage the business's financial health. While facing revenue pressure from the rising popularity of Chinese vehicles, Motus has strategically positioned itself by incorporating Chinese brands into its dealership network to tap into competitive pricing and market share. Despite the margin pressures, the company remains confident in its ability to leverage volume and brand positioning to sustain a robust business model. Furthermore, Motus has diversified its operations by expanding into rental and mobility solutions segments, aiming to achieve a balance between vehicle and non-vehicle revenue streams. The company's focus on innovation and expansion in mobility solutions has proven successful, generating significant annuity income streams and reinforcing the company's resilience during economic downturns. While car rental optimization remains a priority, the mobility solutions segment continues to offer growth opportunities. Moreover, Motus has ventured into the aftermarket parts segment, showing strong growth and market leadership in regions like South Africa and the UK. By strategically procuring products and enhancing vertical integration, the company is poised to leverage this opportunity further and differentiate itself from competitors. Van Rensburg emphasized the importance of product availability and market alignment to drive growth in the aftermarket parts segment. In response to the boost in consumer spending power fueled by factors like interest rate cuts and retirement system withdrawals, Motus has witnessed improved vehicle sales performance in South Africa and the UK. The positive consumer sentiment, coupled with reduced monthly installment costs and stable pricing, has created a conducive environment for vehicle purchases. Looking ahead, despite global economic uncertainties and political dynamics, Motus anticipates stable financial performance with operating profits slightly below the prior year. While cautious about external risks, the company remains confident in its growth prospects and market positioning. Overall, Motus Holdings' proactive strategies and diversified revenue streams have enabled it to navigate the challenging business environment and position itself for sustainable growth in the automotive sector.