Eagers Automotive teams up with Chinese EV maker as profit doubles

Eagers Automotive has signed an exclusive Australian distribution deal with a Chinese electric car maker that outsells Tesla in China.

Australia’s biggest new car dealer is taking a 49 per cent stake in a new joint venture for BYD in Australia, with first deliveries expected in July.

Based in Shenzhen, the fast-growing BYD sells more than 600,000 electric cars a year into China and Europe, capturing demand for moderately-priced electric and hybrid vehicles.

Last year, it outsold Tesla in China.

The partnership was announced as Eagers confirmed a doubling in annual net profit to $330.7 million after Australians used cash piles hoarded during COVID-19 to increase the country’s new car sales by 14.5 per cent last year after trading was hammered in 2020.

WA, one of Eagers’ biggest markets after its takeover of Automotive Holdings Group three years ago, was one of the best performing States, with 2020 sales up 18.4 per cent.

The company’s final dividend was lifted sharply to 42.5¢ from 25¢ a share.

Eagers’ revenue was down about $100m to $8.6 billion, mainly as a result of the sale of the group’s Daimler truck business last April.

The company, which has more than 300 dealerships in Australia and New Zealand, noted that supply chain constraints, including a shortage of semi-conductors that has slowed car production and pushed out new deliveries, had not affected the strong demand for new vehicles.

Eagers shares were nearly 5 per cent lower at $13.33 as at 11.45am.