Hi Matt,
ARB management itself flagged in the FY26 result that BYD Shark accessory demand is being “closely monitored,” with effort deliberately balanced toward models with higher accessory attachment rates, i.e. BYD Shark buyers aren’t fitting bull bars and canopies at anywhere near the rate legacy diesel UTE owners do. That’s a real signal the addressable market per-vehicle is evolving as the mix shifts.
However, we have some insights here as MM’s Research Lead Shawn’s wife owns & runs a landscaping business with a fleet of UTE’s three of which she turned over in June (EOFY), after looking at the BYD, as you would for price, her conclusion was simple:
- The BYD cannot yet compete as a proper work UTE, plus the Ford plug-in Hybrid has just dropped its price by ~$10k to compete with the BYD.
- Good news for UTE buyers not Ford, she bought Fords, not BYD’s.
Also, BYD’s accessories department is virtually non-existent, this may change but they have no focus here at the moment which gives ARB time to adapt, as they must.
- The reasons that BYD Shark owners might not be buying accessories is the simple lack of supply.
ARB isn’t standing still. It has established a wholly owned Chinese subsidiary to work directly with local carmakers and is already supplying Chinese OEM contracts, aiming to have its accessories designed into new vehicles from launch rather than competing solely in the aftermarket. However, how successful this strategy will be with major EV manufacturers such as BYD only time will tell.
- At this stage there’s a large gap in the market for accessories for BYD’s compared to say Ford Rangers and Toyota Hilux’s – this of course won’t last long but ARB are well positioned to deliver.
Diversification is arguably more important than the EV threat itself. Australia’s aftermarket still accounts for ~56% of revenue and is the most exposed to the shift toward EVs, but exports (~38%) and OEM sales (~6%) are growing, particularly in the US. If this momentum continues, ARB should become increasingly less reliant on the Australian 4WD aftermarket and the impact of Chinese EV brands such as BYD.
We feel ARB’s multiple will be more correlated to the consumer than EV sales, as long as UTEs remain a vehicle of choice, we believe ARB’s valuation shouldn’t derate meaningfully further due to EV UTE’s, they will “spec” up in time when the options become more available.
