Carli Lourens

Trade and Industry Editor

MCCARTHY, the vehicle division of the Bidvest conglomerate, would spend R225m on property development this year, it said yesterday.

The investment is in support of its goal to sell a record 85000 new and used vehicles this year, and service more than 700000. It signals a vote of confidence in continued growth in the booming domestic vehicle market, where sales reached a record high last year.

Development of the dealership network was in preparation of the roll-out of a new vehicle franchise, the company said, without elaborating.

CEO Brand Pretorius said the investments would enable the group’s dealer network to capitalise on “current and anticipated future growth” in the market.

McCarthy, Bidvest’s largest division in SA, said 14 new dealerships would be completed before year-end.

McCarthy already distributes new Audi, Alfa, DaimlerChrysler, Fiat, Lexus, Nissan Diesel, Toyota, Volkswagen and Renault, among other marques.

It said it intended to establish a fully-fledged vehicle import and distribution division this year.

McCarthy’s revenue has increased substantially on the back of booming car sales, with revenue for the 2005 financial year reaching R13,6bn. Operating profit was R501m.

The McCarthy dealer network consists of 100 outlets that are located in all the major metro areas.

Pretorius said the medium- to long-term view of the new vehicle market in SA was “promising”.

He said meaningful macroeconomic growth was projected, and affordability would unlock further market growth.