Comprehensive Report on Australian Car Dealership Market

This report provides a detailed analysis of the Australian car dealership market, examining its characteristics, growth, and key findings. It highlights the steady growth of the industry, the increasing preference for imported and smaller fuel-efficient cars, and the high level of competition. The report presents key findings such as revenue figures, industry contributions to the Australian economy, and the number of employees and dealerships. It also covers the facets of car dealerships including new and used car sales, finance, and after-market sales, along with the best-selling brands and models. Furthermore, the report discusses the macro and micro environments impacting dealerships, including market regulations, consumer preferences, marketing strategies, and technological advancements. It also details the key changes affecting the industry, such as shifts in consumer behavior, and the impact of dealerships on employment, GDP, and environmental conditions. The report also includes a case study of Autosales Australia, and provides recommendations for future success, such as leveraging new technology and enhancing customer experience.

Car Dealership
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Characteristics of Australian Market
• Growth of the car dealership industry is steady
• There are more imported cars sold in the nation
• There is preference for smaller cars
• Fuel efficiency is of much significance
• Japan is the main source of imports
• Car volumes in the nation are almost saturated
• Competition is very high

Key Findings
• Car dealership has revenue above $63 billion
• The automotive industry contributes $37 billion to the Australian
economy
• Annual growth is equivalent to 0.5%
• Employees in the sector are approximately 67, 110
• There are close to 4, 500 retails business dealing in car dealership
• More than 1.2 million cars have been sold in the past couple of years
(IBISWorld, 2018).

Facets of Car Dealership
• New car sales
• Used car sales
• Finance and insurance
• Service workshop
• Parts, accessories and post-market sales (CarAdvice, 2018).

Best Selling Brands
• Toyota
• Mazda
• Hyundai
• Holden
• Ford
• Mitsubishi
• Nissan
• Honda (AADA, 2017).

Best Selling Models
• Toyota Hilux
• Ford Ranger
• Mazda3
• Toyota Corolla
• Mazda CX-5
• Hyundai i30
• Toyota RAV4
• Nissan x-trail (AADA, 2017).

Dealerships in Australia
• Australian Motors Townsville
• Australian Motors Group
• Car City
• Buy Carz Australia
• Autosales Australia
• Kia Motors Australia
• Lorbek Luxury Cars
• AHG (Findouter, 2018).

Macro Environment
• The dealerships follow the market regulation laws provided in the
nation
• Consumers mainly prefer small and cheap cars to large and expensive
cars
• Main means of marketing is through digital and mainstream media
advertising
• Social responsibility such as environmental awareness are vital
• Technology is central to the developments in car dealership industry
(Stock & Seliger, 2016).

Cont’d
• Legal requirements govern the service provision by dealerships and
the services received by consumers
• The economy of the nation and globe impacts the direction of car
dealership industry
• Stability of the political situation has been important for the growth of
the industry

Micro Environment
• Pricing of vehicle is relatively low and standard
• Vehicles are mainly distributed through dealership outlets
• Most popular brands receive more emphasis in sales and distribution
• Different market segments portray varying consumer behavior
• Promotions are based on specific customer preferences
• After-sale service and value added services are important
• The competition in dealership industry drives up the performance of
dealerships

Key Changes
• Shift in consumer behavior and preference as regards size, costs and
efficiency of vehicles
• Closure of domestic production units such as Holden, Ford and Toyota
• More development of brands and models
• The industry was negatively affected by the economic downturn
before the turn of the decade
• The industry recovered and thrived in better economic conditions
• There is more environmental awareness than in previous situation
(Australia, 2017).

Impact of Dealership Industry
• Providing employment to masses
• Generation of GDP
• Promotion of better environmental conditions
• Innovation
• Growth in dealership promotes other sectors such as transportation
services (AADA, 2017).