Automotive Holdings is banking on low fuel prices and interest rates to boost confidence in the motor vehicle sector after posting a record first half profit.
Australia's largest car and truck retailer made a net profit of $45 million for the six months to December 31, up from $39.3 million a year ago.
Chief executive Bronte Howson says falling oil prices and record low interest rates should bring optimism to the automotive sector in the second half of the financial year.
"It's quite a big stimulus," he told AAP.
"The fuel price gives you extra dollars in the pocket and confidence for the cash management of your family life."
The industry forecast for the 2015 calendar year is 1.14 million new vehicle sales in Australia, and AHG is confident of maintaining its share of the market.
"We're about a six per cent player, so we'll get some benefit from that," he said.
The company, which owns 167 franchises, said its first result was driven by the strong performance of recent acquisitions and growth in its underlying business.
The group, which is also Australia's largest refrigerated logistics provider, will maintain focus on synergies from its acquisitions of Scott's and JAT, as well as NSW car dealership Bradstreet Motor Group.
AHG's automotive division outperformed the broader market despite a significant fall in new car sales in the first half.
Mr Howson said this was caused by the economic downturn in the mining and resources sectors of Western Australia.
"WA, in a market that was eight per cent down for the calendar year, they've traded very well - in line with last year," he said.
AHG's shares closed .
AHG GAIN TRACTION * Net profit of $45m, up 17.5 pct from $38.3m
* Revenue of $2.57b, up 10.8 pct from $2.32b
* Fully franked interim dividend of nine cents a share, up from 8.5 cents
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