Industry Analysis & Industry Trends
Over the five years to 2014, improving economic conditions has contributed to revenue growth for New Car Dealers in Canada industry. Bolstered by rising consumer confidence and disposable income after the recession, consumers who held off on new car purchases are expected to contribute to industry revenue over the period. Over the five years to 2019, the industry expected to benefit from a slew of new vehicle models, with fuel-efficient vehicles particularly becoming a driver of demand as fuel prices rise and consumers look to purchase vehicles with a higher miles per gallon rate... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate and include substantial capital requirements, access to distribution networks and skilled labour. Establishing a brand name also presents a barrier for some new entrants. These barriers largely reflect the growing market share concentration among new car dealers.
New entrants to this industry need to purchase a large volume of vehicles and real estate to compete with incumbent companies. High capital costs typically deter new entrants, especially in highly competitive provinces, such as Ontario and Quebec. Industry operators must pay different fees, including a licencing fee, which differs between provinces... purchase to read more