Motus lays off 86 workers amid Chinese auto competition

South Africa’s largest car dealer Motus has cut dozens of jobs and reshaped pay structures as growing competition from Chinese car brands squeezes legacy dealerships across the country.

The automotive retailer laid off 86 employees on December 30, while another 579 workers were affected by changes to pay and benefits that took effect on January 1, according to the Motor Industry Staff Association (MISA).

MISA said the retrenchments were among the largest it handled in 2025 and warned that further pressure remains as new brands flood the market.

Motus restructuring under labour law

The JSE-listed automotive retailer launched a formal restructuring process under Labour Relations Act Section 189 in October. This followed a 1% drop in revenue to R112.60 billion for the year ended June 30. The company’s operating profit also slipped to R5.48 billion.

MISA said Motus blamed the decline on weaker new vehicle sales, which fell by R3.33 billion, or 6%, mainly in its international operations.

Workers face pay cuts of up to 30%

MISA said it worked with Motus to protect jobs and long-standing benefits after nearly 900 employees were initially affected.

Union engagement reduced the impact, but MISA remains concerned about pay reductions of up to 30% cost-to-company.

The union did not sign the final agreement and said it is reviewing the fairness of the changes. “Our commitment remains firm,” said MISA chief executive Martlé Keyter. “We will pursue all lawful avenues to protect our members.”

How Chinese car brands influence the market

MISA pointed to the rapid rise of Chinese car brands as a key reason for the pressure on dealerships. Brands including BYD, Chery, GWM, Geely, Jetour, and Omoda now make up roughly a third of manufacturers in South Africa. At least four more brands are expected to enter the market in 2026.

These vehicles often cost less than legacy rivals while offering more features and stronger engines.

Industry data shows buyers can now purchase a new Chinese SUV for the price of a used VW Polo, intensifying competition in both new and used markets.

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