The EV tipping point may have just arrived. Second-hand electric vehicle sales more than doubled in March, with 7,557 units sold compared to a monthly average of 3,340 since October — a surge that speaks volumes about how quickly the Middle East conflict is reshaping the way Australians think about getting from A to B. Rising fuel prices have done what years of government incentives and manufacturer marketing could not, they’ve sent motorists scrambling for alternatives, and the used EV market has been the immediate beneficiary. Critically, the data suggests buyer hesitancy around depreciation and battery longevity is fading fast, as rapidly advancing battery technology and falling prices make the second-hand proposition increasingly compelling.
Also, new EVs are keeping pace. March delivered a monthly record, with new EVs accounting for nearly 15% of total new car sales, with BYD helping to drive the lift in sales. We’ve adopted a bullish stance towards EV sales as the Chinese manufacturer continues to deliver better options, including a quality UTE – the Shark. In simple terms, we believe the war has thrown fuel on an already burning fire.
- We believe Australia will start to really follow China in EV adoption over the years ahead.
We liked APE’s last result in February Here, they’re operating well in tough conditions. APE is arguably the single biggest corporate beneficiary of the new EV tailwind. Despite holding a ~14% share of overall new car sales, Eagers is currently selling well over 30% of Australia’s new electric vehicles, a disproportionate position that reflects years of deliberate strategic positioning. Their BYD relationship is the centrepiece. Eagers’ dealerships account for approximately 80% of all BYD sales in Australia, i.e. they’ve backed a winning horse.
However, the used car opportunity is where it gets really interesting. The used vehicle market is benefiting from higher clearance rates, with dealer feedback suggesting it will be a key driver of gross profit, where new vehicles may be more challenging. Eagers’ easyauto123 network puts them directly in the path of that wave. With outsized sales of hybrids and EVs, Eagers is looking at over $5 billion of revenue growth in FY26, with estimates of $18.4bn in total revenue.
- APE is positioned perfectly for a consumer keen to buy a EV, whether new or second hand.
NB APE makes more money on used rather than new car sales with the real cream coming from Finance, Insurance & Aftermarket — the hidden profit engine.
The bottom line: When Australians buy an EV, new or used, there’s a better than one-in-three chance Eagers has something to do with it. In the context of surging used EV demand and rising fuel prices, that’s a meaningful place to be sitting. Importantly we don’t believe Australians will forget this fuel shock in a hurry and the Hybrid/EV adoption will now continue over the coming years.
- We are initially targeting the $28-30 area through 2026/7.
MM is bullish towards APE around $23.50
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