Auto Sales & Dealers Market Research Reports, Analysis & Trends
Sales dealers industry comprises companies that operate by selling and setting up a store and dealing cars to the consumers, in addition this industry retails automobiles to consumers and businesses and provides services to turn into the purchase of automobiles by the customers. Vehicles or automobiles include cars and trucks or various functionality, capacity and vehicles appropriate for the operation and transportation required by the customer. There are few organizations, that offer customers trade-in, car financing and car selling services to attract more customers and to build a brand loyalty and also to keep themselves unique and different from the competition.
In the today's scenario of spending, traveling, buying and overall budget plan of customers or consumers, their spending and interest rates have driven demand for cars and automobiles that give comfort, leisure and necessary status or class maintained by the customers, so the retailers or dealers tend to adapt and offer the best and right options for the customer and also help them to choose more options in terms of accessorizing, design or overall customization of the vehicle. So, when the competition is tough and shrewd in the market, the profitability of individual companies depends entirely on the volume and mix of cars and services sold and for that, the individual companies has to have a unique product, service and attraction that brings the customer to their shop.
Today, the large companies can offer a wider selection of cars and they have advantages in marketing, purchasing, and finance, but small players compete effectively by offering superior customer service or serving a local market where they understand the locals taste, what attracts them and how to penetrate the smaller region by offering a better option. Globally, the industry is in a good and well organized and functioning state, with revenue flowing smoothly and operation and production running on a good profit margin scale. The US industry is high fragmented industry with the top 50 companies generating approximately 15% of revenue. In the global scale, the sales of new and used cars and related products and services by new car dealerships account for over 90% of the industry revenue, and the remaining 10% is covered by the used car dealerships, so to gain more consumer base, the industry also focuses on offering parts and accessories, maintenance and repair services, financing plans, extended warranties, and insurance.
Auto Sales & Dealers Industry Current Trends
The sales and dealers of automobile industry is a mature industry and it has been through several phases and cycles to reach that level. With the technology having reached in almost all parts of the world and in almost all industries, this industry has gained a mammoth size of the market with the help of technology. As the online car dealing came into existence a few years ago, since the digital boom, the car industry has majorly focuses on the online sales and online penetration and reach all over the world. The online car dealer business plan works excellently well because of many reasons that are positive, one being the largest reach of creating awareness and second is the instant information regarding the product or model the consumer is looking for. So, the online car dealership industry is in a growing stage and it is thriving. Online car dealership and the industry is a highly fragmented and competitive industry, it exhibits a low level of market share concentration and it is estimated that only the top two players account for over 5% of industry revenue by the end of 2013.
There is a huge potential market and prospect growth opportunities in current global scenario and the rising demand for new and used vehicles is the evidence of that. Today more companies are tapping into the online automotive retail realm due to the low investment costs and low capital equipment start-up expenditures and moderate barriers to entry, the industry is projected to experience a sea of of new entrants coming in the near future.
Major Auto Sales & Dealers Companies
Major players in the sales dealers industry include CarMax, AutoNation, Penske Automotive Group, Sonic Automotive,Inchcape plc, Jardine Cycle & Carriage, Porsche andZhongsheng.