Eagers said it would have a 49 per cent stake in the company which will be the exclusive national dealership retailer for electric and hybrid vehicles from BYD.

The five-year deal, which is currently at the non-binding term sheet stage, would mean the start of an “omni-channel retail footprint” in Australia’s key markets.

The deal is with EVDirect.com which has the distribution rights in Australia. Eagers said a national dealer group would be created under a national franchise agreement providing retail sales and after sales service centres.

BYD expects to start EV deliveries into Australia in July and would have six models available by 2023.

Eagers said it was still doing due diligence on the deal and working towards the finalisation of a binding transaction.

Chief executive Keith Thornton said BYD had clear ambitions to grow its presence in Australia and the deal cemented Eagers Automotive at the front of Australia’s transition to cleaner transport.