Full tank: New fuel-efficient models are anticipated to support industry demand

Over the five years to 2018, revenue for the Canadian New Car Dealers industry is expected to increase, bolstered by rising consumer confidence and disposable income. Over the five years to 2023, the New Car Dealers industry in Canada is expected to continue to accelerate. New fuel-efficient models, in conjunction with stable consumer confidence, are anticipated to support industry demand. Additionally, improving economic conditions are expected to boost employment and disposable income levels, which will enable consumers to purchase big-ticket items...read more.

Industry Statistics & Market Size
Revenue
$135bn
Annual Growth 13-18
6.7%
Forecast Growth 18-23
Profit
Employment
144,776
Businesses
3,727
Market Share of Companies

Industry Threats & Opportunities

  • Profit is forecast to expand, bolstered by rising technological change driving down labour costs
  • Parts and services is a potential revenue growth area for industry operators
  • Rising fuel prices are expected to drive demand for fuel-efficient vehicles
  • Industry Report - Industry Key Buyers Chapter

    The New Car Dealers industry in Canada has a low level of market share concentration. The industry is highly fragmented, with the top four industry players expected to generate less than 10.0% of industry revenue in 2018. Moreover, 20.0% of industry dealers were nonemployers in 2017, according to Statistics Canada; the remaining percentage have one or more employees, according to Innovation, Science and Economic Development Canada.Consolidation has increased over the five years to 2018 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, 75.0% of new car dealers may be fully retired within the next decade...purchase to read more.

    Additional Insights for the New Car Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the New Car Dealers Industry are

  • Provision of superior after-sales service
  • Use of high volume/low margin strategy
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the New Car Dealers industry impact industry performance..

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    What's in this report

    What is the New Car Dealers Industry?

    This industry sells new and used passenger vehicles. Vehicles include passenger cars, light-duty trucks, sport utility vehicles (SUVs) and passenger vans. New car dealers also sell parts and provide repair services.

    Industry Products
  • New vehicles
  • Used vehicles
  • Parts and repair services
  • Industry Activities
  • Selling new cars
  • Selling new light trucks
  • Selling used cars
  • Selling used light trucks
  • Providing vehicle maintenance and repairs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Corporate profit
  • Overnight rate
  • World price of crude oil

  • Current Performance
  • Renewed demand
  • New revenue streams
  • New models
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic conditions and competition
  • Regulations and technology
  • Table: New Car Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - New Car Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Automobile Wholesaling in Canada
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada

  • Products & Services
  • New vehicles
  • Used vehicles
  • Parts and repair services
  • Other
  • Chart: New Car Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers under the age of 55
  • Consumers between the age of 55 to 64
  • Corporations
  • Consumers over the age of 65
  • Other
  • Chart: Major Market Segmentation for the New Car Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs New Car Dealers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the New Car Dealers Industry

  • Industry Globalization
    AutoCanada Inc.,
  • Table: AutoCanada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the New Car Dealers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • New vehicle sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ecoboost Engine
  • Engines manufactured by Ford for Ford vehicles.
  • Floor Plan Financing
  • A type of financing used to fund purchases of vehicles intended for sale.
  • Light-Duty Vehicle
  • A passenger vehicle, sport utility vehicle or truck weighing less than 6,350.3 kilograms (14,000.0 pounds).
  • What Our Customers Say

    Why buy this report?

    The New Car Dealers market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on New Car Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The New Car Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on New Car Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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