AHG to buy two car dealerships worth $7.5 million in New Zealand
Date: 2018-01-08   Author: Dhananjay Punekar  Category: #market

AHG to buy two car dealerships worth $7.5 million in New Zealand

In what may be touted as a major boost to the NZ automobile industry, Automotive Holdings Group (AHG), an Australian based firm involved in the auto retail business, has purchased two car dealerships in Auckland for USD 7.5 million. Reports have claimed that the firm is looking to expand its business in the country’s suburb Manukau through the acquisition of Mitsubishi and Hyundai dealerships. The purchase agreement is scheduled to be finalized in February with AHG paying the currency for stocks & assets and goodwill of the reputed car manufacturers.

As per one of the key officials of AHG, the acquisition will add two new brands to its vehicle dealership portfolio in New Zealand. It has been learnt that the firm had earlier acquired the dealerships of Nissan and Holden in Manukau and the recent purchase will further augment the firm’s service line expansion across the region. It is also expected that the strategic move will help the firm increase its sales and strengthen its brand value across the region.

Sources have stated that LWC, a firm owned by AHG, has reported profits worth USD 6.7 million at the end of the first half of 2017. The profits of the firm during the first six months of last year was higher as compared to its 6.6-million-dollar profit on car sales of USD 438 million in 2016.

Industry analysts have predicted that over the past few years the automotive industry in New Zealand has been witnessing strong sales supported by lower vehicle import duties. It has also been witnessed that the rising need for private transport facility and the emerging tourism sector, supporting the demand for rental vehicles is anticipated to boost the growth of the automotive sector in the region. Furthermore, as per experts, AHG’s decision is likely to turn out to be a profitable move for the firm.



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

IT giant Cognizant acquires Dublin-based fintech firm Meritsoft
Author: Ojaswita Kutepatil

The company with this acquisition will leverage Meritsoft’s know-how to help clients transform business for the digital era.

American IT conglomerate, Cogni...


Hops material segment of Non-Alcoholic Wine and Beer Market will witness CAGR over 8% by 2024
Author: Rahul Sankrityayan

Shifting consumer preferences towards healthier alternatives is among the key factor propelling the non-alcoholic wine and beer market size. Factors such as religious restrictions, rising consumer spending across developing countries along with fa...


Matcha market from personal care & cosmetic application will witness 3.5% by 2024
Author: Rahul Sankrityayan

Rising consumption rates along with increasing health awareness of nutritious food & beverages will propel matcha demand. This rise in demand can be attributed to its nutritional benefits, unique flavor and texture along with its extreme versa...