Industry Analysis & Industry Trends
The past five years have been tumultuous for the Motor Vehicle Dealers industry. In the aftermath of the global economic downturn, consumer confidence wavered and Australians put off spending on big-ticket purchases such as cars. As a result, demand for motor vehicles slid into a ditch. Motor vehicle sales have since recovered on the back of pent-up demand and strong consumer confidence. High fuel costs over the period also hurt motor vehicle sales. Industry revenue is expected to increase at an annualised 4.3% over the five years through 2013-14 to reach $74.0 billion. This includes expected revenue growth of 1.0% over 2013-14. The solid growth over the five-year period will be due to stronger consumer sentiment and higher real household disposable income... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the decline stage of its life cycle. The industry's contribution to the economy (industry value added) is expected to increase at an annualised 2.0% over the 10 years through 2018-19. Meanwhile, the Australian economy is expected to grow at an annualised 2.5% over the same period. With industry value added growing slower than the economy, the industry's contribution to the economy will shrink. Therefore, the industry is estimated to be in the decline stage of its life cycle.
The market for cars is mature. The number of new car sales is declining in proportion to population growth. Consequently, demand is not expected to exceed population growth. The industry's life cycle started moving into a decline phase during the global financial crisis... purchase to read more