Eagers Automotive enters Term Sheet to be exclusive Australian retailer for BYD

Keypoints

• A new dealer group to be established for BYD products (which will be a joint venture in which Eagers Automotive will have a 49% interest) to become exclusive national dealership retailer for electric and hybrid vehicle manufacturer BYD
• Initial 5-year franchise agreement to provide an omni-channel retail footprint in all key markets in Australia
• The dealer group will leverage Eagers Automotive’s retail expertise, scale, geographic diversity, flexible property portfolio and innovative omnichannel retail solutions including integrated digital experiences available online and in shopping centres, service factories and existing physical retail footprint.

Eagers Automotive Limited announces that it has entered into a non-binding Term Sheet with EVDirect.com to establish a new joint venture, the dealer group, as the exclusive national retailer for BYD, the electric and hybrid vehicle manufacturer, as it enters the Australian market.

Eagers Automotive will have a 49% interest in the joint venture. EVDirect.com has the exclusive distribution rights for BYD in Australia. Under the Term Sheet, the dealer group will be created to operate under a national franchise agreement to provide retail sales and after-sales service centres for BYD in all key Australian markets for an initial period of 5 years.

We are very excited to be the retail partner for BYD Australia and EVdirect.com as they enter the Australian market. BYD has clear ambitions to quickly grow its presence in Australia and increase EV penetration amongst Australian customers. This confirms Eagers Automotive at the forefront of Australia’s transition to a cleaner vehicle future and recognises our national footprint, geographic diversity, retail expertise and commitment to providing innovative solutions for the future of automotive retail.

Eagers Automotive CEO Keith Thornton

Established in 1995 and based in Shenzhen, China, BYD is one of the world’s largest and fastest growing automotive manufacturers, specialising purely in electric and hybrid electric vehicles. BYD expects to commence deliveries of its first electric vehicle (EV) model in the Australian market from July 2022 with plans to increase to six models by the end of 2023. Eagers Automotive is committed to working expeditiously towards completion of due diligence and the finalisation of binding transaction documentation.

We have been impressed with the approach Eagers Automotive has adopted to provide retail solutions that are responsive to the changing demands of car buyers. It is very much aligned with our thinking and our plans to take BYD to market in Australia. When combined with their scale, track record and geographic reach in all key markets, we believe the new combined partnership will further complement the existing strategic plan to expedite BYD’s ambitious growth plans.

BYD Australia Pty Ltd General Manager, Wing You

Earlier this week, the Warren Buffet-backed Chinese automaker BYD announced, via their Weibo account, that the new Yuan Plus Model has reached more than 20,000 Pre-Sale orders. The model is the first one developed for global markets. The company unveiled the new model during the last Guangzhou Auto Show, in November 2021. The model is an all-electric small crossover/SUV and it is expected to be the company’s next electric car launch in Europe following the BYD Tang Model that went on sale in Norway in August 2021.

The Model (with a different name of ATTO 3) will arrive Australia with deliveries starting in July. The Atto 3 will start at $44,381 being the cheapest Electric Vehicle available in the country. Panoramic Sunroof with electric slide and anti-trap, One-Touch Open/Close Tailgate, Roof Rails, Electrically heated and adjustable exterior mirrors and Electrically retractable exterior mirrors are among the specs. The model will be sold through EVDirect, the recognised Australian importer and reseller.

The superior version with an extra of 100km range will be available for an extra of $3,000.BYD has established an Australia-focused line at one of its factories in China, and plans to commence production of the first 15,000 cars for this market. EVDirect says it also plans to offer what it calls “the country’s biggest market-driven EV stimulus” with $500 million worth of low-interest finance (as low as 3.81 per cent) to be offered, according to CarExpert.

BYD delivered 93,945 New Energy Vehicles in December 2021, compared with 28,841 in the same period last year. In addition, the company’s cumulative sales volume of NEVs in 2021 was 603,783 units, an increase of 218.3% year-on-year, compared with 189,689 vehicles in 2020.