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 major cause of the industry's revenue decline, as consumers have shifted their demand towards more fuel-efficient small cars that 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. Strong price competition, improved production efficiencies overseas, a reduction in the motor vehicle tariff and a high Australian dollar have forced overall prices down. While lower prices have benefited the industry by increasing demand, they are expected to result in a 0.5%... 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. The highest number of 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 these top two states represent just under 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 growth corridors... purchase to read more