Exclusive importer and distributor

We import, distribute and supply vehicles and parts to the Group and independent dealership networks, government, car rental companies and leasing companies.

Mobility Solutions integration

Full value chain presents unique opportunities for financial services, products, innovation and differentiation

Exclusive distributor in other Southern African countries

2022 performance

We are a long-standing distributor for OEMs, providing them with market access through quality marketing, high levels of customer satisfaction and strategically located dealerships.

Market access, together with our proven ability to sustainably build brands through the achievement of targeted volumes and customer satisfaction scores that exceed OEM requirements, has continued to strengthen our relationships with them and allowed us to remain their distributor of choice in sub-Saharan Africa. This allows us to offer competitive prices, exceptional service and innovative products and services to our customers that exceeds their expectations.

In an operating environment characterised by the long-term operational, social and economic impacts of COVID-19, ongoing supply chain disruptions, low economic growth and a looming recession, we rely on our agility, entrepreneurial tenacity and trusted relationships to deliver our strategic priorities.

Our Importer brands have deepened their maturity in the South African market over the last few decades and are benefitting from the ongoing structural shift away from luxury brands in the South African vehicle market. Customers are increasingly considering our Importer brands as an attractive alternative that offers an increasingly strong value proposition as more premium vehicle models are introduced to the market. Our deep strategic relationships with our Importer OEMs allows us to introduce new vehicle models that appeal to the local consumer from a styling, versatility and affordability perspective.

We have continued to grow our share of the passenger market in South Africa. We actively manage vehicle availability with our OEMs and this, together with our broad product range of attractive and affordable models for customers, our omni-channel approach and professional and well-informed sales force, has allowed us to exceed our customers' expectations and attract new buyers.

Our vehicle market share (passenger only) in South Africa as at June 2022 for the 12-month period was 24,5% (2021: 22,0%). Hyundai achieved 9,4% market share (2021: 10,2%), Renault achieved 7,9% market share (2021: 6,1%), Kia achieved 6,3% market share (2021: 5,0%), and Mitsubishi achieved 0,9% market share (2021: 0,7%).

Hyundai, Kia and Renault have forward cover for the Euro and US Dollar to February 2023, at average rates of R17,60 to the Euro and R15,45 to the US Dollar, including forward cover costs. The current Group guideline is to cover seven to nine months of forecasted vehicle import orders.

Our ability to enhance the customer experience across the vehicle ownership cycle remains critical to maintaining and growing our market share as we continue to deliver high standards for service excellence. We aim to consistently exceed our customer expectations to deepen their loyalty. Our customer loyalty programmes support this journey to build strong customer relationships and deepen brand loyalty, focusing on customers with out-of-service plan or out-of-warranty vehicles. Current loyalty programmes include Kia Klub and Renault Drivers Club, with Hyundai and Mitsubishi due to launch their own loyalty programmes during the 2022 calendar year.

We responsibly manage the ESG impacts that are within our control. We invest in systems that harness cleaner energy (solar photovoltaic (PV) systems) and water (rainwater harvesting systems). We have installed solar PV systems at our key sites and are reviewing the feasibility of solar PV installations at additional sites. In addition, we are assessing the viability of technology that enables energy to be sold into the power grid from our bond stores.

We are closely monitoring the developments in the NEV market and the legislative framework in South Africa, and are informed of the shifts that our OEM partners are making in their transition, so that when policy changes are implemented to make these vehicles more affordable, we will be well positioned to act quickly, leveraging the learnings from NEV adoption in the UK. This will position us well to capture the NEV market in South Africa when demand increases and favourable policies are implemented. Currently, Kia, Hyundai and Renault lead NEV sales in Europe; in the European Car of the Year 2022 Awards, the Kia EV6 won Car of the Year, the Renault Mégane E-TECH Electric placed second and third place went to the Hyundai IONIQ 5 (a NEV). The Mitsubishi Outlander PHEV also recently won the global iF DESIGN AWARD 2022.

Read more about the Group's environmental and social priorities.

Integration and optimisation

Innovation and unlocking customer potential in existing and new customer channels represent an opportunity for the business to grow. Our ability to leverage technology, particularly in the ways that matter most to our customers, driving communication throughout the ownership cycle and rewarding customer loyalty remains an area of focus as we improve our customer relationship management tools.

We continually assess our dealership footprint in response to developments in the operating environment and we will continue to refine the franchise model in dealership locations where it is appropriate.

We will invest in technology and innovation initiatives that improve customer experience, affordability and our understanding of consumer trends, while conservatively managing costs and inventory levels.

Read more about the Group's approach to innovation and digitisation.

Our people

We continue to entrench our culture of high performance, entrepreneurial spirit and innovation through ongoing improvements in our training and job support capabilities, and our ability to support career development opportunities.

We regularly identify and develop initiatives to enhance employee engagement as our people are critical to our success. Their safety and wellbeing remains a top priority and we strive to ensure that we have a safe workplace for our people.

Read more about the Group's people strategy.