Motor Vehicle Dealers in Australia - Industry Market Research Report

A raw deal: Supply chain and manufacturing disruptions during the pandemic have limited growth

Motor vehicle dealers have faced difficult trading conditions over the past five years. Weaker demand stemming from uncertain economic conditions, tighter lending restrictions and weak wage growth has negatively affected dealers. The COVID-19 pandemic exacerbated this trend, as lockdowns and social distancing greatly restricted industry demand and supply. Overall, revenue has grown at an annualised 0.2% over the five years through 2022-23, to $64.7 billion. This includes a rise of 17.1% in 2022-23 alone, as consumers catch up on purchases that were delayed by the pandemic and the industry sees increased pricing after more than two decades of declines. Increased logistics costs and vehicle shortages have swollen prices. By passing on freight costs and capitalising on weak supply, dealers have increased profit margins.

The industry includes dealerships that primarily sell new or used motor vehicles to consumers, companies and government entities. Industry firms also offer after-sale services for motor vehicles.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.