Peter Warren Automotive released a trading update to the ASX today, announcing a downgrade to results, with the following commentary.
Buyers may have the upper hand now
‘The lower than anticipated performance for H1 FY25 reflects the following external factors:
• Australia is experiencing a significant over-supply of new vehicles. Pressure to clear these
vehicles has reduced new car margins across the industry, with retailers experiencing varying
margin reductions depending on the brands represented.
• The level of demand for new vehicles has reduced and is lower than last year. Customer
demand continues to be impacted by cost-of-living pressures and demand for certain models,
including Electric Vehicles, is mis-aligned with supply. As a result, the volume of new vehicles
being delivered is lower than prior periods, which benefitted from a backlog of orders.’
Yawn….