December 2022 - Bay of Plenty Business News

More documents

Recommendations

Info

16 BAY OF PLENTY BUSINESS NEWS December 2022 AUTOMOTIVE The future of NZ automotive trends The Lexus of Tauranga store has now been trading for 19 months, and during that period we have launched two new models to the Lexus range, initially the UX300e (BEV) and then the all-new NX350H (HEV) and NX450H Plug-in (PHEV). The advancement in the technology and safety features of the new NX range has given us a prequel to what the future holds for the next model change, which is the iconic RX range. Lexus NZ plan to launch the new RX range early in 2023, with a choice of three key variations, including a single turbocharged petrol hybrid version and a choice of two hybrids. These new variations will replace previous models but will offer more powerful and fuel-efficient powertrains across all their ranges. With the option of an RX 350H or RX 350H Limited, however the new RX 500h, (Turbocharged Hybrid) which is the hero Sales of EVs are projected to reach 10.6 million worldwide in 2022, a 57% increase over 2021, with BEVs expected to reach 8 million units and PHEVs to reach 2.6 million.” in the lineup, is only available in the recently launched F-Sport Performance grade. These new models will stimulate the Luxury Hybrid SUV Market in a significant manner. We have enjoyed excellent growth in the Luxury Sector over the past 12 months, primarily because of the experience the customers receive when they visit the dealership, and naturally, the quality of the product reinforces why they should move to the Lexus brand. This is despite significant challenges with supply due to component shortages in various models. Thankfully our Lexus customers are willing to wait patiently for the arrival of their new vehicles. The automotive industry is going through an evolution of change, and in the 30 years I have been in the industry, this is one of the most significant changes I have seen. With the world focused on emission reduction, this has led to many countries offering incentives for the general population to move towards adopting EV vehicles. EV-volumes says, sales of EVs are projected to reach 10.6 million worldwide in 2022, a 57% increase over 2021, with BEVs expected to reach 8 million units and PHEVs to reach 2.6 million. “By the end of 2022 we expect nearly 27 million EVs in operation, counting light vehicles, 70% are BEVs and 30% PHEVs.” These are significant increases across a significant number of countries. Now the other consideration is with the introduction of EV vehicles to New Zealand roads, and with a view to recouping what will be an inevitable decline in fuel excise duties which amounted to $2.1 billion last year, the Ministry of Transport (MOT) is proposing changes to the road user charges (RUC) system. That could see EV owners start paying when the exemption for EVs ends in two years’ time. Under the current system, RUC applies to vehicles using fuels other than petrol or larger than 3.5 tonnes. Last year, there were an estimated 800,000 light vehicles which contributed $800 million in RUC fees, while another 190,000 heavy vehicles contributed about $1.1b under the system, according to MOT figures. Under current settings, light EVs will remain exempt until Mar 31, 2024, which will save their owners an average of about $800 annually. In its consultation proposals, MOT is suggesting the possibility of applying RUC to light EVs and electric motorbikes, based on distance travelled. Naturally, there is also a race to have EV chargers installed throughout the country to support this growing trend, and with that will come additional charges in the future to sustain the energy cost being delivered. Someone has to pay the “ferryman” as they say. The Clean Car Standard (CCS) is one of a range of government initiatives to tackle the overall transport sector’s CO2 emission levels as part of the effort to address climate change. The Clean Car Standard is a government target that regulates importers to reduce CO2 emissions to specific targets by encouraging a greater supply of low and no-emission vehicle imports to New Zealand. Vehicles with a high CO2 emission rating will incur a charge, the higher the CO2 rating the greater the charge. For vehicles that are below a set standard, the importer receives a credit that can be used to offset charges. So as of January 1st, 2023, each vehicle importer must account for their total fleet emissions, so some of these importers will be significantly impacted as their bias is diesel light commercial, with very few hybrid or EV vehicles in their fleet to offset this. The impact to Lexus New Zealand will be minimal given that 83% of its vehicle fleet sales in 2022 were either hybrid or fully electric, which will assist Toyota New Zealand to offset the diesel variants in their range. Given the upcoming changes, supply restrictions, and rising fuel prices, as well as the possibility of a change in the government, MIKE RANSTEAD, Lexus of Tauranga Branch Manager which could also see a change in the EV Rebate System, the automotive industry will prove to be very interesting over the course of the next 12 months. Therefore, before making a purchase, make sure you thoroughly research your options. EXPERIENCE AMAZING LOCALLY DEDICATED STAND ALONE DEALERSHIP We welcome you to experience amazing at your new local Lexus of Tauranga dealership. Enjoy exceptional hospitality and a personalised buying experience in our dedicated stand alone showroom. Sales, Service & Parts 158 Elizabeth Street, Tauranga lexusoftauranga.co.nz | 07 577 0880
December 2022 BAY OF PLENTY BUSINESS NEWS 17 BUSINESS BROKERS Business sales – busy times ahead There has been an enormous amount of media coverage and focus over the last five years about a potential tsunami of New Zealand businesses being put up for sale, due to a wave of baby boomers looking to sell up and enjoy their well-earned retirement. Many have challenged this theory and stated that it’s going to be more of a ripple than a tsunami as the health and motivation of these owners remains strong with no immediate desire to hang up their boots just yet. LINK is the largest specialised business brokerage company operating in Australasia and has been in the market for just under 30 years. From LINK’s perspective, based on our results over the last year and looking at the current activity in the market, we would comment that the actual truth is probably that it is a “surfable wave” rather than a ripple or tsunami. Despite this, for the financial year ending 2022, LINK enjoyed its strongest trading year in history and the first half year results for the 23 financial year are also very strong. The local LINK Bay of Plenty office which operates with a team of 17 industry specialist brokers, has enjoyed a very busy and successful year with a record number of business sale transactions. So, what is driving increased transactional activity in the market right now? There is no question that we are seeing an increase in the number of baby boomers putting their businesses on the market ready to enjoy retirement. If you are a business owner out there considering a possible exit through a sale, I would strongly recommend that you: • Start the process of preparing the business for sale • Engage your professional advisors • Maximise the business profitability • Identify and mitigate or minimise risk • Engage an industry specialised business broker Selling a business takes time and business owners are encouraged to engage with an expert such as business broker well before they want to sell. A business broker can help in preparing a business for sale and guide the owner through the whole process which can sometimes be rather complicated. The emphasis and importance on business owners “grooming” their businesses for sale are ever increasing. As a result of the anticipated influx of businesses coming to the market in the years ahead, this could possibly have a significant dampening impact on business values due to oversupply. Nearly 60% of small to medium-sized businesses are owned by people aged over 50 and 23% are currently owned by people over 60. Whether you are considering selling or buying a business, don’t miss out on the potential opportunity to change your life through the successful sale or purchase of a great business.” As such many owners considering retirement could achieve a much better result by achieving a sale sooner rather than later. It is a sad fact that many owners will miss this window of opportunity and end up winding down a lease only to achieve minimal cents on the dollar for their tangible assets, running a closing down sale to shift stock and making long serving loyal staff redundant. It’s a fact of life that every single business STEVEN MATTHEWS, LINK Business Brokers, Tauranga owner will at some time exit their business. At LINK, we encourage owners to take control of this process and achieve a desirable chunk of tax-free cash through a successful sale. In addition to more businesses coming to market, much of the increased activity we are experiencing is coming from a strong demand of buyers in the market. Many existing businesses are recognising a good opportunity for growth through a strategic acquisition (especially from those baby boomer business owners retiring). Business ownership is one of the best ways to build equity, and there is a noticeable generational shift in younger people aspiring to own their own business, rather than relying on climbing the career ladder within an existing company to help secure their future. There is a real appetite out there for the younger generation to get involved in business which can provide the following benefits. • A better work life balance • Increased earning capacity • Opportunity to build equity and wealth (free from Capital Gains Tax) • Tax advantages • Independence (being your own boss and controlling your own destiny) Many aspiring business owners out there could consider avoiding paying intangible (goodwill) and starting up a business. However, the statistics of failed starts ups is as high as 80% in the first year. Buying an established business as a going concern hugely reduces risk and the revenue is instant. Whether you are considering selling or buying a business, don’t miss out on the potential opportunity to change your life through the successful sale or purchase of a great business. Our team of business brokers located here at LINK Bay of Plenty have been operating for over a decade and have successfully transacted well over a thousand business sales. When considering the sale or purchase of a business we encourage you to reach out to us for a friendly, no obligation, confidential chat. 26 Fourth Ave Tauranga 0800 225 999 LINKBUSINESS.CO.NZ $5b+ worth of businesses successfully sold 250k+ active buyers on our databases Source: LINK data as at time of printing 30,000+ owners have trusted LINK to sell their businesses 4,000+ businesses for sale internationally $2b+ of businesses listed on our global websites 300+ LINK business brokers worldwide Confidentiality is key: 95% of the businesses we sell are confidential sales. Ask How >> All LINK NZ offices are licensed REAA 2008
Page 1 and 2: DECEMBER 2022 VOLUME 6: ISSUE 12 WW
Page 3 and 4: December 2022 BAY OF PLENTY BUSINES
Page 9 and 10: Turn to page 5 BBN-November-2022.in
Page 15: December 2022 BAY OF PLENTY BUSINES

December 2022 - Bay of Plenty Business News

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?