Automobile Dealers Industry Overview

Excerpt from Automobile Dealers Report

Companies in this industry engage in retail sales of new and used passenger cars, light trucks, SUVs, and passenger and cargo vans. Major companies include AutoNation, CarMax, Penske Automotive Group, Sonic Automotive (all based in the US), as well as Inchcape plc (UK), Jardine Cycle & Carriage (Singapore), Porsche Holding GmbH (Austria), and Zhongsheng Group Holdings Limited (China).

Competitive Landscape

Consumer spending and interest rates drive demand for cars. The profitability of individual companies depends on the volume and mix of cars and services sold. Large companies can offer a wider selection of cars and have advantages in marketing, purchasing, and finance. Small companies can compete effectively by offering superior customer service or serving a local market. The industry is highly fragmented: the top 50 companies generate less than 15 percent of revenue.

Products, Operations & Technology

Sales of new and used cars and related products and services by new car dealerships account for 90 percent of industry revenue; used car dealerships make up the remaining 10 percent. In addition to cars, dealerships commonly offer parts and accessories, maintenance and repair services, financing plans, extended warranties, and insurance.