Industry Analysis & Industry Trends
Over the five years to 2016, revenue for the New Car Dealers industry is expected to increase, bolstered by rising consumer confidence and disposable income. Rising disposable income encourages consumers to make big-ticket discretionary purchases, such as new vehicles. In the coming years, new fuel-efficient models, in conjunction with stable consumer confidence, are anticipated to support industry demand. Additionally, improving economic conditions will boost employment and disposable income levels, which will enable consumers to purchase big-ticket items... purchase to read more
Industry Report - Industry Key Buyers Chapter
The New Car Dealers industry has a low level of market share concentration. The industry is highly fragmented, with the top four industry players expected to generate less than 20.0% of industry revenue in 2016. Moreover, 17.0% of industry dealers were nonemployers in 2014 according to Statistics Canada (latest data available); the remaining 83.0% have one or more employees, according to Industry Canada.
Consolidation has increased over the past five years, as larger automotive groups buy out smaller independent dealers. Additionally, a greater number of new car dealers are retiring. According to a March 2012 PwC Automotive Dealer Trendsetter Survey, 30.0% of Canada's stand-alone, or single-point, dealers will likely be bought out over the next year or be semi-retired... purchase to read more