McCarthy Motor Holdings sold 72 600 vehicles in the year to June, but fell short of its 75 000 target mainly because of a decline in used vehicle sales, according to the group’s chairman, Brand Pretorius.
McCarthy Motor Holdings sold 72 600 vehicles in the year to June, but fell short of its 75 000 target mainly because of a decline in used vehicle sales, according to the group’s chairman, Brand Pretorius.
In the light of low interest rates, low pricing inflation, strong business confidence and added-value deals on an ever-expanding new vehicles market, MMH, South Africa’s second-largest vehicle retailer after the Imperial Group, increased its sales total for the year to June by 10 per cent over the corresponding period in 2004.
The group recorded a 14 per cent increase in revenue to R13,6 billion, profit was up 22 per cent to R500 million, and it hoped to increase vehicle sales to 83 000 in its new financial year, quoted an MMH spokesman as saying.
CARtoday.com recently quoted Pretorius as saying that although a recent upturn in used vehicle sales was “most encouraging”, there had not been any improvements in the upper end of the second-hand market, which remained heavily biased towards new vehicles.
In addition, MMH said its trading margin on used vehicles was at about 3,4 per cent in the year under review, compared with about 4,5 per cent two years ago. However, the stronger rand had bolstered McCarthy’s Yamaha business, and its vehicle-related financial services had also performed strongly, the report said.
Pretorius said that although the group had failed to achieve its sales target sales due to the slowdown in used – vehicle sales, there were signs that the pre-owned market was normalising.
With the possibility of the South African new-vehicle market doubling over the next five years, MMH planned to expand its dealer network. CARtoday.com also recently reported that the group had launched a Student Wheels programme, which offers used vehicles with less than 180 000 km on their odometers – and engine capacities smaller than 2,0 litres – for under R55 000.
McCarthy’s opened the first Student Wheels outlet in Morningside, Durban three months ago, and a second dealership was opened in Umhlanga Rocks.
“Further expansion of the KwaZulu-Natal project will depend on the availability of suitable stock. The long-term plan is to have McCarthy Student Wheels outlets in all major metropolitan areas. The next is likely to be situated in Pretoria,” said Pretorius.
