You are very wrong. On top of that, you appear to have have next...

First 9 Last

Share
Profile

Follow
pastperformer

7,834 Posts.

2388

24/05/24

14:53

Post #: 73996087
Share

Originally posted by vagabond84: ↑

Did more research yesterday, turns out BYD doesn't own their own dealerships - the service centres and showrooms are owned by a Joint Venture between EVDirect and APE. My mistake, the articles I read made it look as though EVDirect was a BYD company and it was EVDirect that was speaking on behalf of BYD. That said, I'm still not convinced BYD gaining market share is good for APE, because I'm sceptical BYD is giving this JV the kind of generous margins that dealerships typically enjoy. The fact that BYD is promoting Kmart Tyre and Auto as a place to service BYD vehicles suggests the JV won't have a monopoly on servicing new BYD vehicles still under warranty, a traditionally lucrative source of profit for dealerships. The heavy emphasis on direct selling to the public by this JV, via a website, also suggests less involvement of the dealership in closing a sale, thus less potential for the middleman to profit.

I could be wrong again here, but the fact that BYD's approach here is different from everyone else except Tesla (e.g. promoting non-dealership new car servicing, sales process that can be done entirely via their website except for picking up the vehicle) means it's not safe to assume any dealership that's partnered with BYD will enjoy the same profit margins they typically enjoy. I am still wary of a possible future where BYD and Tesla dominates new car sales, disrupting the car dealership's lucrative profit streams in the process.

Expand

You are very wrong. On top of that, you appear to have have next to no understanding of the Auto industry.

Perhaps you should spend some time looking at this - https://www.automallwest.com.au/

If you want to understand AP eagers, you need to understand the direction of the industry and how AP Eagers intends of profiting from it.

Less posting and more research for you my friend.

APE Price at posting: $10.62 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

What's causing the cost-of-living crisis, and how to navigate it

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%