Turners eyes more local stock
Turners Automotive is planning to source more of its inventory from across New Zealand as it predicts the government’s clean car policies will have a significant impact on used dealers importing cars from Japan.
The company sells 30,000 cars a year, which is equivalent to six per cent of the retail market, and like the rest of the industry is waiting to see how the feebate scheme starting in January 2022 will affect business.
Besides the clean car discount, which will charge buyers extra fees for high-emitters and offer money back on zero and low-emissions vehicles, a clean car standard is also in the pipeline. The latter scheme aims to reduce the average emissions of cars coming into the country and is expected to come into force in August 2022
Aaron Saunders, chief financial officer at Turners, told a NZX Retail Investor Webinar on August 10 the policies will impact new and used importers, especially those who largely rely on importing cars from Japan.
“For us, circa 10 per cent of our inventory currently is sourced out of Japan and we’ve really pivoted to focus on sourcing much more of our stock locally,” he said.
“We see a huge opportunity to source locally and essentially replenish our inventory through the locally installed base, and probably reduce our imports even further once the clean car standard and penalties and rebates scheme are fully introduced next year.”
Todd Hunter, pictured, group chief executive officer, added that the introduction of the clean car regulations next year “will see used car prices continue to increase”.
He also explained how Turners hopes to open more branches across the country as it seeks to increase its underlying net profit before tax to $45 million by the 2024 financial year, which would be a 31 per cent increase from 2021.
“We’ve got a significant number of opportunities to be in more places but also to reshape the branches we have around the country to be more retail friendly,” said Hunter.
“We’re really focused about taking our branches to more places and being closer to the customers that are ending up in our business.”
Two new sites are being developed in Rotorua and Nelson, with the former set to start a phased rollout from September 2021. The Nelson branch is due to open early in the next financial year.
Hunter told the webinar the 2022 financial year had started well for the company, with more details about that to be announced at its annual general meeting on August 18.
