BYD Australian retailer invests millions as electric car brand takes off

BYD, already the second-largest seller of electric cars in Australia, is about to benefit from a significantly expanded retail footprint with the launch of new sedans, hatches, SUVs and utes.

Australian publicly listed automotive giant Eagers Automotive Ltd today announced that it has invested an additional $70 million in a retail venture to sell BYD both online and in stores.

The investment — $50 million in cash and $20 million in Eagers ASX stock — in exchange for another 31% stake in Australia’s current BYD retail joint venture with a company named EVDirect.com, which still acts as the sole licensed distributor of the BYD brand here.

Eagers’ stake in the retail venture EV Dealer Group Pty Ltd is currently at 80%, with EVDirect.com holding the remaining 20%. Eagers previously owned 49%, making it the new senior partner in the retail side of the operation.

“The increased ownership interest strengthens Eagers Automotive’s position as the exclusive retail partner for BYD and EVDirect.com in the Australian market, and further demonstrates Eagers Automotive’s unique position as an exclusive retail partner for BYD and EVDirect.com in the Australian market. way to be the leader in the once-in-a-generation transition to new energy and low-emission vehicles,” the company said in an investor announcement.

For its part, EVDirect.com is optimistic about what selling a part of its stake in the retail venture could mean for the fast-growing BYD brand, its Atto 3 being the model. Electric is the best-selling electric in Australia and does not carry the Tesla badge.

The company’s management says the development will unlock “additional capital” to grow the company’s distribution business. EVDirect.com has long stated their relationship with BYD extends to dedicated right-hand drive lines and technical input to important upcoming products such as 2024 electric dual taxis.

“With four more BYD models scheduled to launch and ship in Australia by the end of 2024, the BYD brand will continue to grow exponentially. Our company will continue to invest in streamlined supply chain processes and product development of BYD models for the Australian market,” said EVDirect CEO Luke Todd.

Part of this master plan is the establishment of new BYD Performance and Service Centers, starting with a site in Mascot near Sydney airport from August 2023, designed to prepare vehicles to disembark. customers on a large scale. The site will first be able to handle 100 cars per day, EVDirect.com claims.

Meanwhile, retail joint venture Eagers and EVDirect.com will open two new ‘BYD Megastore’ locations in Sydney (Alexandria) and Brisbane in September/October 2023, with more to come. These sites will support smaller brand stores in the shaft and spokes model.

EVDirect.com states: “The BYD Megastore concept heralds a new era of auto retail, providing customers with an immersive and educational experience for the BYD brand and product line.

“As demand for electric vehicles is now shifting to mainstream among Australian consumers, we will introduce the world’s first car retail service and will make it easier for consumers to switch to alternative options. choose cleaner and more economical means of transport.”

Todd told us today that these superstores will sell BYD cars but are also designed to help those new to electric vehicles with answers to the myriad questions related to living with them.

It’s been a great couple of weeks for BYD’s Australian importer. Last week, it announced its second model, the BYD Dolphin Small Hatch, will become Australia’s cheapest new EV at $38,890 before on-road costs — $100 less than its Chinese rival, the MG 4.

In early June, it also sent an extra 750 BYD Atto 3s to Victoria to take advantage of the fall of that State’s $3000 electric car rebate on June 30.

EQUAL We reported exclusively in JuneBYD diverted the finished Atto 3s from the factory line directly into sealed shipping containers, thus avoiding their cars lying in the dumps and picking up bugs. and seeds, Like many other cars stuck in quarantine hell instead of customer driveway.

“We’re not short of batteries, we’re not short of chips,” said EVDirect chief executive Mark Harland, citing BYD’s vertical integration as a battery and semiconductor company. only me.

BYD’s master plan is to reach 50,000 annual sales here in the next few years, supported by the expansion of the EV product line – including sports cars as BYD seal and an electric ute, which we got a deep grip during testing.

This equates to about 5% market share which, based on sales figures for 2022, would put BYD in the top 10 list of brands alongside Chinese automaker MG (49,582) and above it. brands like Subaru, Volkswagen and Nissan.

“We don’t necessarily see Tesla as our direct competitor, although from an electric vehicle standpoint they have set the standard,” Harland added. “We consider BYD to be the main competitor to Toyota, Kia and other vehicles. We want BYD to be on those buyers’ shopping lists.”

Mr. Harland, a longtime chief executive officer of General Motors in Shanghai and of Holden, said BYD’s speed of movement was something he had never seen “in more than 25 years of working in the auto industry”.

While we tend to fulfill such bold sales aspirations with a pinch of salt – EVDirect is no stranger to making huge claims – the company is certainly active in the Australian market, which offers a certain degree of reliability.

The first BYD vehicle to be sold at a suitable scale in Australia is the Atto 3 SUV, which has achieved 4664 deliveries this year, representing a 14.5% share of the electric vehicle market. It’s even selling better Tesla Model 3 in the May.

The next cab to escape the proverbial ranking after the BYD Dolphin will be the now long overdue BYD Seal sports sedan to compete with the Model 3, pole star 2And Hyundai Ioniq6.

“The plans are for us to have Seal in the country before the end of the calendar year,” Mr. Harland told us. “I’d like a little bit on the ground, it’s just a matter of compliance and ADR and ticking all the boxes.”

New player EVDirect has learned the hard way to ensure it meets all the necessary Australian Design Rules, with red tape making it blush after having problems with the Atto 3 . child seat attachment immediately after market launch.

In addition, the brand has a wide range of electric vehicles in other segments to choose from, with vehicles like the upcoming new-generation BYD Tang full-size SUV and the BYD Han full-size sedan already available. ready to update.

Another key addition to the BYD lineup, and an obvious key to its mass production aspirations, is its plan to launch a line of plug-in and electric two-cabin hybrids – thoughtfully developed. to Australia (and therefore RHD) from the beginning of the program year.

“There’s no commitment on the pickup, but let’s just say it’s definitely on the roadmap. And BYD moves quickly,” said Mr. Harland.

“Do we do a plug-in hybrid or a dual engine? [EV]or maybe there is an option of both for those who need more range? None of that is resolved, those are the discussions going on right now.

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