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. Industry revenue has declined, largely due to high fuel prices encouraging consumers to purchase smaller, cheaper and more fuel-efficient cars. As a result, dealerships have been selling higher volumes of cheaper small cars and lower volumes of more expensive large cars, resulting in per-unit revenue declining. Additionally, the combination of strong price competition, improved production efficiencies overseas, a reduction in the motor vehicle tariff and a high Australian dollar has forced overall prices down... purchase to read more
Industry Report - Industry Locations Chapter
In general, industry enterprises are distributed across Australia in line with the distribution of the population. Most industry enterprises are therefore located in New South Wales, which also holds the largest population. Victoria houses the second-highest number of enterprises, also in line with population balance.
IBISWorld estimates that Victoria and New South Wales represent approximately 56% of motor vehicle dealer enterprises in Australia. However, these states are slowly losing market share to regions such as Queensland and Western Australia. Both states underwent strong population growth due to the boom in the mining and commodities sector, which provided the impetus for dealers to establish operations in these growth corridors... purchase to read more