Metair, a prominent South African manufacturer of vehicle parts such as shock absorbers and spring systems, has reported subdued growth for the six-month interim period ending June 30, 2026. As a key supplier to original equipment manufacturers (OEMs), the company’s performance reflects a complex local market weighed down by declining vehicle exports and intensified competition from international automotive brands.
Interim Financial Highlights
Despite a challenging manufacturing environment, Metair managed to maintain profitability and post marginal growth across its primary financial metrics compared to the same period in 2025.
| Financial Metric | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| Group Revenue | R8.54 billion | R8.46 billion |
| Gross Profit | R1.42 billion | R1.28 billion |
| EBIT | R444 million | R440 million |
| Headline Earnings Per Share (HEPS) | 72 cents | 65 cents |
| Diluted Earnings Per Share | 71 cents | -91 cents |
Market Dynamics: Rising Sales vs. Manufacturing Pressures
The South African new-vehicle market experienced a healthy 12.9% year-on-year increase in sales during the first half of 2026. However, this domestic boom did not directly translate to significant gains for local manufacturers.
The Import Challenge
According to Metair, the surge in local vehicle sales was heavily dominated by imported vehicles, particularly from emerging Chinese and Indian automotive brands. This influx has placed considerable pressure on locally manufactured vehicles and the domestic OEM supply chain.
Export and Production Slump
Local OEMs also struggled with a drop in international demand. Vehicle exports declined by 7.8% year-on-year for the first six months, dropping to 181,731 units. Consequently, South Africa’s overall vehicle manufacturing volume saw a meager 1% year-on-year growth, reaching…
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Read Full Article by Tapiwa Matthew Mutisi at innovation-village.com
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