Stalling: The rising popularity of cheaper, lower margin small cars is slowing revenue growth

The Motor Vehicle Dealers industry has had a bumpy ride over the past five years. While industry revenue has increased over the period, this growth has been volatile. The industry's performance has been strongly linked to the sale of new motor vehicles. Early in the five-year period, high fuel prices encouraged consumers to purchase smaller, cheaper and more fuel-efficient cars. While fuel prices have since fallen considerably, consumer preferences have continued to shift towards smaller vehicles in response to increased environmental awareness and periods of negative consumer sentiment. Dealerships have therefore been selling higher volumes of cheaper small cars at the expense of more costly large cars, resulting in average revenue per vehicle sold more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Dealerships have sold higher volumes of cheaper small cars in relation to more expensive large cars
  • The shift in demand towards smaller cars has driven down average industry revenue per vehicle sold
  • The industry is anticipated to grow over the next five years, driven by increasing vehicle sales
  • Industry Report - Industry Key Buyers Chapter

    The Motor Vehicle Dealers industry exhibits low market share concentration. The industry has a large number of dealerships servicing the new and used car markets in Australia, and the four largest players account for considerably less than 40% of industry revenue. Market share concentration has remained steady over the past five years, but is anticipated to rise over the next five years. As the larger industry players continue to acquire competitors and smaller dealerships over the next five years, their rate of expansion is expected to exceed that of the industry, leading to an increase in their market share. However, a rise in concentration is expected to be constrained by the large number of small, independent dealers that compete primarily in a limited geographic market...purchase to read more.

    Additional Insights for the Motor Vehicle Dealers Industry

    IBISWorld has determined the most important Key Success Factors for the Motor Vehicle Dealers are:

  • Provision of superior after-sales service
  • Guaranteed supply of key inputs
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as New passenger motor vehicle sales and Real household discretionary income in the Motor Vehicle Dealers industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Dealers Industry?

    The Motor Vehicle Dealers industry includes dealerships primarily engaged in selling new or used motor vehicles to consumers, companies and government entities. Industry firms also offer after-sale services for motor vehicles.

    Industry Products
  • Commercial vehicles
  • Small passenger vehicles
  • Medium passenger vehicles
  • Large passenger cars and other vehicles
  • After-sale service
  • Compact SUVs
  • Sports utility vehicles (SUVs)
  • Utility vehicles
  • Industry Activities
  • New motor vehicle retailing
  • Used motor vehicle retailing
  • After-sale services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • New passenger motor vehicle sales
  • Real household discretionary income
  • Motor vehicle price index
  • Business confidence index
  • Retail petrol prices
  • Trade-weighted index

  • Current Performance
  • Industry participation
  • Business sales
  • Affordable cars
  • Import penetration
  • Chart: Revenue Growth

  • Industry Outlook
  • New vehicles
  • Import tariffs
  • Competitive market
  • Oil slump
  • Table: Motor Vehicle Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Taxi and Limousine Transport
  • Passenger Car Rental and Hiring
  • Consumers

  • Key Selling Industries
  • Motor Vehicle Electrical Services
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Motor Vehicle Manufacturing
  • Motor Vehicle Wholesaling

  • Products & Services
  • Sports utility vehicles (SUVs)
  • Small passenger vehicles
  • Utility vehicles
  • Medium passenger vehicles
  • Compact SUVs
  • Large passenger cars and other vehicles
  • After-sale service
  • Commercial vehicles
  • Chart: Motor Vehicle Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private customers
  • Business customers
  • Government and other customers
  • Chart: Major Market Segmentation for the Motor Vehicle Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Dealers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Dealers Industry

  • Industry Globalization
    Automotive Holdings Group Limited, A P Eagers Limited,
  • Table: Automotive Holdings Group Limited - financial performance
  • Table: A P Eagers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Motor Vehicle Dealers Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cab Chassis
  • Vehicle with a body-on-frame design, where the cabin, or cab, is placed on a chassis with bare frame rails behind, allowing the consumer to modify the rear part of the vehicle.
  • People Mover
  • Large vehicle with a wagon design that has the capacity to carry seven or more passengers.
  • Sports Utility Vehicles (Suvs)
  • Vehicles based on a wagon body style, which have a high ground clearance and are built on a light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle Dealers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Motor Vehicle Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Motor Vehicle Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Motor Vehicle Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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