New vehicle sales data continued to deteriorate across ARB's (ASX:ARB) key platforms on a year-over-year basis, Jarden said in a note on Wednesday.
May data shows the recent clear shift towards electric vehicles and hybrid vehicles continues at the expense of internal combustion engine sales, with electric vehicle share hit 20% and total electrified 46% of new car sales.
Jarden said it was not convinced ARB's core customer is switching to these electric and hybrid vehicles. Higher interest rates and fuel prices are having a short-term demand impact on diesel vehicles. However, ARB is losing domestic market share to competing four-by-four accessory brands.
Toyota is the largest drag on sales data, and much of this is accounted for by supply constraints, which are expected to improve through the second half of the year, and read-through from new vehicle sales is expected to improve from the September quarter onwards.
The investment firm retained its neutral rating on ARB and reduced its price target to AU$20.55 per share from AU$20.70 per share.