The Colonial Motor Company expects earnings for the six months to December 31 2023 to decrease by around 30%, compared to the same period the previous year.
The decrease is primarily attributed to the anticipated consumer delay in purchasing the company's light commercial range and SUV products, as well as a weaker demand environment.
The impact of the legislated end to the Clean Car Discount scheme, which particularly affected the non-electric vehicle market, was also cited as a factor.
The company said its car dealerships were adversely affected by the deferral of vehicle sales and the cost of holding inventory for a longer period in a high interest rate environment.
However, on a positive note, orders that were deferred to post-December are now flowing through the system, and robust heavy truck sales are anticipated in the second half.
The half-year results will be published by the end of February.
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