Eagers Automotive (ASX:APE) signed a term sheet with BYD Australia, the incoming national importer and distributor of BYD passenger vehicles in Australia, to extend its long-term arrangement with the BYD brand with a new five-year dealer agreement, including an additional five-year option period, according to a Monday Australian bourse filing.
The new dealer agreement will continue to operate through the existing retail joint venture entity, EV Dealer Group, in which Eagers Automotive has an 80% stake, with the remaining 20% held by the outgoing distributor for BYD vehicles in Australia, EVDirect.com, the filing said.
The new dealer agreement will coincide with the transition of distribution rights for BYD passenger vehicles in Australia from EVDirect.com to BYD Australia.
The joint venture will retain its existing network of retail sales and after-sales service centers across Australia. In addition, the joint venture, inclusive of existing retail partners, will be granted specific rights, subject to BYD approvals, to apply to increase its BYD retail network.
The term sheet is subject to the completion of a formal documentation between the joint venture and BYD Australia, and the new arrangement is expected to begin in July.
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