New vehicle sales continue to improve, and with that, it's worth having a look at which ASX-listed entities are best-placed to take advantage of the trend.
The team at Macquarie said they expected new vehicle demand to continue improving after growing 0.7% year over year in October, with a forecast that volumes will grow by the low to mid-single digits in the second half of calendar 2025.
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Car sellers in the spotlight
Macquarie has an outperform rating on dealers Eagers Automotive Ltd (ASX: APE) and Autosports Group Ltd (ASX: ASG), but said on balance they prefer Eagers.
As they said in their note to clients:
Eagers is our preference given the scale of its organic and inorganic growth opportunities. Its acquisition of CanadaOne provides a platform for further North American inorganic growth, in what is a highly fragmented market.
The Macquarie team expect Eagers' organic growth to be bolstered by the strength of electric vehicle BYD sales in Australia, as well as from an agreement struck as part of the CanadaOne deal to collaborate with Japan's Mitsubishi Corporation.
Eagers recently announced it would buy a 65% stake in CanadaOne for $1.04 billion.
Macquarie has a price target of $29.98 on Eagers stock and $3.63 for Autosports Group.
Aftermarket sales strong
In the 4X4 accessories market, the Macquarie team has an outperform rating on Amotiv Ltd (ASX: AOV) and ARB Corporation Ltd (ASX: ARB), saying Amotiv's valuation is attractive and its FY26 guidance is "achievable".
They added:
We remain positive on ARB's offshore growth opportunities, with export segment sales growth of 16.4% in FY25 increasing to 17.6% in its recent first quarter AGM update.
They have a price target of $44.90 on ARB shares and $11.66 on Amotiv shares.
In the automotive financing sector, the Macquarie team likes three companies, in descending order of preference: Fleetpartners Group Ltd (ASX: FPR), SmartGroup Corporation Ltd (ASX: SIQ), and McMillan Shakespeare Ltd (ASX: MMS).
Their price targets for the companies are $3.68, $8.99, and $19.69, respectively.
In other automotive news, used car digital platform company Carma Ltd (ASX: CMA) listed on the ASX this week after raising $100 million at $2.70 per share.
The shares have traded lower since their Wednesday listing and are now changing hands for $2.45.
Carma is differentiated from its peers in the sector by offering a testing and reconditioning service for cars sold on the platform, ensuring customers can buy with confidence.
As well as selling cars to retail customers, the platform also conducts wholesale auctions.
