Industry Analysis & Industry Trends
The Motor Vehicle Dealers industry has had a largely steady ride over the past five years. High fuel prices early in the period encouraged consumers to purchase smaller, cheaper and more fuel-efficient cars. Dealerships have therefore been selling higher volumes of cheaper small cars at the expense of more pricey large cars, resulting in per-unit revenue declining. Additionally, the combination of strong price competition, improved production efficiency overseas, a reduction in tariffs on Korean and Japanese vehicle imports, and a high Australian dollar for the majority of past five years has forced overall prices down. Lower vehicle prices have benefited the industry by supporting demand growth, with industry revenue forecast to rise at an annualised 1.5%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Motor Vehicle Dealers industry is in the mature phase of its life cycle. Industry value added (IVA), which measures an industry's contribution to the overall economy, is forecast to rise at an annualised 0.5% over the 10 years through 2020-21. This represents an underperformance of overall GDP, which is projected to increase at an annualised 2.6% over the same period. Although the industry's contribution to the overall economy is shrinking, motor vehicle dealers are well established in Australia and are anticipated to continue their slow growth over the next five years.
While new car sales have undergone strong growth over the past five years, consumer preference is shifting towards cheaper, more fuel-efficient cars... purchase to read more