Automobile Dealers
Companies in this industry engage in retail sales of new and used passenger cars, light trucks, SUVs, and passengers and cargo vans. Major companies include AutoNation, CarMax, Group 1 Automotive, Penske Automotive Group, and Sonic Automotive (all based in the US), as well as Inchcape plc (UK), Jardine Cycle & Carriage (Singapore), Pang Da Automobile Trade (China), and Porsche Holding Salzburg (Austria).
Worldwide automobile sales grew to around 67.2 million automobiles in 2022, up from around 66.7 million units in 2021, according to Statista. China is the largest automobile market based on sales with around 23.24 million units in 2022, while monthly car sales fell in April 2022 due to shortages, fears over a looming recession, and the country grappling with the COVID-19 pandemic.
The US automobile dealer industry includes about 50,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $1 trillion.
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 service a local market. The US industry is highly fragmented: the 50 largest firms generate about 20% of revenue.
For vehicle sales, auto dealers compete with private market sellers, who are increasingly using the internet to bypass traditional retail channels. Companies compete with various retail outlets, such as oil change centers, tire stores, and independent service shops and chains, for service revenue.
Automotive vehicle imports to the US decreased to over $30 billion at the end of 2022. Top importers include the European Union, China, Mexico, and Canada.
Products, Operations & Technology
Sales of automobiles and light-duty trucks account for about 80% of revenue, while parts and supplies and maintenance and repair services account for 10%.
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Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms