Industry Analysis & Industry Trends
The Motor Vehicle Dealers industry has driven along a bumpy road over the past five years despite rebounding strongly following the global financial crisis. High fuel prices have been the major cause of the industry's revenue decline, as consumers have shifted their demand towards more fuel-efficient small cars that have cheaper price tags. Dealerships have been selling higher volumes of cheaper small cars and lower volumes of more expensive large cars, resulting in per-unit revenue declining. Strong price competition, improved production efficiencies overseas, a reduction in the motor vehicle tariff and a high Australian dollar have forced overall prices down. While lower prices have benefited the industry by increasing demand, they are expected to result in a 0.5%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Motor Vehicle Dealers industry is in the mature phase of its life cycle. While new car sales have undergone strong growth over the past five years, consumers are increasingly opting to purchase cheaper, more fuel-efficient cars. Revenue generate by the industry has consequently declined despite growth in sales volumes. The average cost of vehicles has also decreased due to factors beyond the smaller average size of vehicles being sold. Cheaper motor vehicles are being sold in Australia due to increased production efficiencies overseas, a high Australian dollar and strong price competition between dealers. Although demand has increased, it has been offset by lower prices.
Industry value added (IVA) measures an industry's contribution to the overall economy... purchase to read more