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 Key Buyers Chapter
The largest metropolitan dealers dominate the new car dealership segment, with 10% of dealerships estimated to account for over 50% of units sold. This relates to the higher proportion of fleet sales by the larger dealerships. In the used car dealership segment, it is estimated that the largest 20 enterprise groups account for only 16% of revenue.
The big get bigger
In aggregate, market share concentration is low within the industry. The industry has a large number of dealerships servicing the new and used car market in Australia. The top four enterprises account for an estimated 10.2% of industry revenue. Market share concentration remained steady over the past five years. However, the industry's largest players did engage in merger and acquisition activity... purchase to read more