SUV spree: Increasing demand for larger cars has boosted industry revenue growth

The Motor Vehicle Retailing industry has grown strongly over the past five years, due to rising real household discretionary income and positive business confidence over most of the period. These trends have resulted in an increase in demand for both passenger and commercial vehicles. The fall in fuel prices over the past five years has caused the number of larger car sales to increase. As large cars, such as SUVs, are sold at a higher margin than smaller cars, this trend has benefited the industry. Industry revenue is expected to rise at an annualised 5.4% over the five years through 2017-18, to $11.3 billion. However, a depreciating New Zealand dollar and a drop in business confidence are expected to constrain revenue growth in more.

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

Industry Threats & Opportunities

  • Rising discretionary income has supported the industry’s strong performance
  • The New Zealand dollar’s rise in value has benefited industry performance over the past five years
  • Industry profitability is forecast to fall due the decline in the value of the New Zealand dollar
  • Industry Report - Industry Investment Chapter

    The Motor Vehicle Retailing industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.09 is spent on capital investments. This level is consistent with the Retail Trade division, due to purchase costs being a significant expense. Capital intensity for larger players is likely to be higher as they derive benefit from economies of scale. With greater capital investment and higher sales, fixed costs per vehicle unit sold is generally lower. In addition, larger players are more likely to use computer software to monitor the demand for individual products, which increases capital costs and reduces wage costs...purchase to read more.

    Additional Insights for the Motor Vehicle Retailing Industry

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

  • Provision of superior after sales service
  • Guaranteed supply of key inputs
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Motor Vehicle Retailing industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Retailing in New Zealand Industry?

    Industry participants sell new and used motor vehicles. These include passenger motor vehicles, commercial vehicles, motorcycles, RVs and trailers. Industry participants also offer after-sales services.

    Industry Products
  • Sports utility vehicles (SUVs)
  • Passenger motor vehicles
  • Pick-ups and chassis cabs
  • Other commercial vehicles
  • Motorcycles and other vehicles
  • After-sales services
  • Industry Activities
  • New motor vehicle sales
  • Used motor vehicle sales
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Trade-weighted index
  • Motor vehicle price index
  • Business confidence index
  • World price of crude oil

  • Current Performance
  • Key drivers
  • Industry structure
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Integrated technology
  • External competition
  • Table: Motor Vehicle Retailing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Passenger Car Rental and Hiring in New Zealand
  • Postal and Courier Pick-up and Delivery Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Car Wholesaling in New Zealand
  • Commercial Vehicle Wholesaling in New Zealand
  • Motor Vehicle Engine and Parts Repair and Maintenance in New Zealand

  • Products & Services
  • Passenger motor vehicles
  • Sports utility vehicles (SUVs)
  • Pick-ups and chassis cabs
  • Other commercial vehicles
  • After-sales services
  • Motorcycles and other vehicles
  • Chart: Motor Vehicle Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private customers
  • Business and government customers
  • Chart: Major Market Segmentation for the Motor Vehicle Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Retailing

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Colonial Motor Company Limited,
  • Table: Colonial Motor Company Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Retailing 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 Retailing 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 cab is placed on a chassis with bare frame rails behind, which allows the consumer to modify the rear part of the vehicle.
  • Electric Vehicle (Ev)
  • A vehicle either powered solely by electric batteries or a combination of a petrol or diesel engine and electric batteries.
  • Sports Utility Vehicle (Suv)
  • Vehicle with a wagon body style, which typically has a higher ground clearance than a sedan and is built on a light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle Retailing in New Zealand market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Retailing in New Zealand:
    • 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 Retailing in New Zealand 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 Retailing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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