ARB Corp (ARB) – New car sales sluggish

ARB Corporation designs, manufactures and sells motor vehicle accessories and light metal engineering works, with a focus on the 4WD market. It has operations in Australasia, the US, Thailand, the Middle East, the UK and Europe. ARB was incorporated in 1975 and is based in Kilsyth, Australia.

Australian new vehicle sales fell 3.3% year-on-year (YoY) in March 2026 to 105,058 units. For the calendar year, March-quarter sales are tracking 2.6% below the prior year.  According to the Federal Chamber of Automotive Industries (FCAI), new vehicle sales declined 3.3% YoY to 105,058 units in Mar-26, driven by weaker Passenger, Light Commercial and Heavy Commercial vehicle sales. Passenger Vehicle sales fell 7.5% YoY, LCVs declined 14.0%, and Heavy Commercial Vehicles fell 12.0%, partially offset by SUV growth of 0.9%.

Key vehicles targeted by ARB for its 4WD accessories recorded a 9.9% YoY decline in new vehicle sales in March. Within this, performance was mixed across ARB’s two largest vehicle platforms – the Toyota Hilux saw sales increase 2.1% YoY, while the Ford Ranger recorded a 9.7% YoY decline.

New vehicle sales have been impacted by inconsistent supply from manufacturers throughout the March quarter. Elevated fuel prices in March may adversely impact demand for ARB’s Australian aftermarket operations. Longer term, the outlook for ARB is positive, with robust demand for its products, a healthy order book, and new vehicles and products being released globally. Earnings growth should be driven by new and refurbished stores, offshore expansion, and strategic partnerships with original equipment manufacturers (OEM). We maintain a Buy rating on ARB.

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