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Automotive Dealership Industry Insights

Performance

The Automotive industry in Australia continues to grow and remains a competitive, dynamic and expanding market, comprising a range of smaller industries, whose performances vary across the supply chain.

The main drivers of demand, population growth and business formation rates are on an upward trend. Primary demand determinants influence consumers' ability to purchase new vehicles, and include household discretionary income, interest rates and the price of vehicles. Over the past five years, the growing household discretionary income and lower interest rates have prompted vehicle sales to grow. Vehicle prices have fallen due to growth in lower cost imports, which has further strengthened demand in the new car market as vehicles have become more affordable.

As the industry evolves to meet these challenges, the Australian Government continues to invest to support the industry. Motor vehicle registrations have been growing rapidly in Queensland over the past five years and there has also been strong expansion in the state due to the mining and commodities sectors, which drive demand for vehicles. The same can be said for Western Australia, where there has been a boom in the demand for utility vehicles due to the rapid rise of mining activity during the period. While the brakes have been applied to the mining boom as it turns the corner from its investment phase to its production phase, the population growth in these states stemming from the investment phase is expected to keep each state's share of industry enterprises steady.

Competitive market

The market for motor vehicles is expected to remain highly competitive, with many brands competing to increase their market share. Profit margins are anticipated to increase slightly over the next five years, as industry players with higher margins capture a greater market share. Additionally, the anticipated appreciation of the Australian dollar will likely reduce the cost of purchases, which will further boost profit margins. However, directives from wholesalers (and their parent entities) to keep prices low are anticipated to limit the growth in dealers’ profit margins.

BDO’s automotive dealership advisory professionals understand the ever-changing market conditions and you can be confident that our knowledge and advice reflects the latest insights in the industry, to ensure you comply with regulations and help you achieve increased profitability and growth.
They also provide insights on current industry benchmarks, reports and audit, dealership tax planning as well as advisory reminders and requirements.

Insights

Checklist

Topic  
Automotive dealership selling checklists
Automotive dealership buying checklists

Articles

Brochures

Release Date Title
26/08/2014 Automotive AADA Convention 2014 Overview

Expert Commentary

Date Title
17/02/2017 NADA 2017 Review
22/06/2016 NADA 2016 Review
24/03/2014 NADA 2014 Review

Presentations

Date Title
11/08/2015 AADA Dealer Attitude Survey Results
04/03/2015 NADA Presentation 2015
27/02/2014 NADA Presentation 2014

Surveys

Date Title
13/12/2016 BDO Motor 150 Report 2016
27/01/2016 BDO Motor 150 Report 2015
03/08/2015 BDO Automotive Executive Salary Survey 2015
10/02/2015 BDO Automotive Executive Salary Survey 2014
29/01/2015 BDO Motor 150 Report 2014
10/12/2014 BDO Automotive Executive Salary Survey 2014
08/01/2014 BDO Motor 150 Report 2013

Technical Updates

Date Title
19/04/2014 Automotive Update - Luxury Car Tax threshold and fuel-efficient car limit 14/15
14/04/2014 Automotive Update - Manufacturer Incentives - GST and LCT – ATO guidance
18/02/2014 Automotive Update - LCT Calculation changes - effective 1 March 2014

Videos

Date Title
25/11/2014 Effective Salary Packaging