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 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 generated by the industry has consequently declined despite growth in sales volumes. The average cost of vehicles has decreased due to factors beyond the smaller average size of vehicles being sold. Cheaper motor vehicles are also a result of 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