Vehicle availability, tourism seen improving in 2023

9th December 2022

By: Irma Venter

Creamer Media Senior Deputy Editor


Font size: - +

Zeda will invest in the renewal of its fleet next year, with the group expecting the supply of new vehicles to stabilise in 2023, says CEO Ramasela Ganda.

Zeda is a mobility specialist that incorporates the Avis and Budget brands. It is active in the vehicle leasing and rental sectors, and is set to list on the JSE on December 13, following its unbundling from Barloworld.

The global automotive market has seen the persistent short supply of new vehicles on the back of a semiconductor shortage, Covid-19-related shutdowns, trade wars and the war in Ukraine.

Zeda believes it may have perhaps overpaid for new vehicles in recent years, as it has been unable to source all its desired vehicles, with lower-specced units not always available.

On the flipside, however, a normalisation of vehicle availability should see buoyant used-car margins normalise, something which is currently boosting Zeda’s bottom line as it pushes these units into the market following the completion of service, says Ganda.

Zeda has 14 Avis car dealerships, as well as an online sales channel.

Apart from the improved availability of new vehicles, other good news for Zeda is that Ganda also expects a “significant recovery” in the South African tourism market as Covid-19 abates, which should boost vehicle rental numbers.

While car rental demand has improved, it is yet to return to prepandemic levels.

Zeda currently has a 79.1% utilisation of its rental fleet.

Ganda notes that Zeda has worked hard in recent years to diversify the business from its traditional tourism focus by, for example, adding vehicle subscriptions and heavy- vehicle leasing.

Zeda delivered its financial results for the year ended September 30 late last month, ahead of its debut on the stock exchange.

Group revenue was up 6.6%, to R8.18-billion, while operating profit increased by 52.8%, to R1. 26-billion.

The car rental business grew revenue by 9.7% to R5.98-billion, with operating profit surging 159.3%, to R861-million.

In the leasing business (Avis Fleet), revenue was down by 0.9.%, to R2.19-billion, impacted on by an adverse outlook on parts pricing, interest rate hikes and foreign currency fluctuation.

Operating profit declined by 18.6%, to R403-million.

“I look forward to leading this solid business into the future,” says Ganda.

“Today, Zeda Group is the largest and only integrated mobility provider in sub-Sahara Africa offering both short-term car rental and long-term fleet management and leasing solutions across 11 countries in Africa.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor



Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...


Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.


Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.126 0.16s - 90pq - 2rq
1: United States
Subscribe Now
2: United States