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 main reason for the industry's revenue decline, as consumers have shifted their preference towards more fuel-efficient small cars, which 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. 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 Investment Chapter
Capital intensity is moderate within the Motor Vehicle Dealers industry. The ratio of labour to capital is used to determine the amount of labour used for every unit of capital in the industry. For every dollar industry operators spend on wages, $0.16 is invested in capital.
Retail industries are typically labour-intensive. Businesses in the industry require staff to make sales and carry out administrative work. Skilled salespeople can generate significant business activity for dealers, and are often remunerated in proportion to the level of business they bring. However, due to high demand for new cars over the past five years, industry operators have reinvested in their facilities, resulting in increased capital intensity... purchase to read more