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    Automobile Dealers Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 5/17/2021
    SIC Codes: 5511, 5521
    NAICS Codes: 4411
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Automobile Dealers Industry Profile

    Companies in this industry engage in retail sales of new and used passenger cars, light trucks, SUVs, and passenger and cargo vans. Major companies include AutoNation, CarMax, Group 1, Penske Automotive Group, and Sonic Automotive (all based in the US), as well as Inchcape plc (UK), Jardine Cycle & Carriage (JC&C) (Singapore), Porsche Holding Salzburg (Austria), and Power Diversity Automobile Trade Group (China).

    Worldwide, automobile dealers sell about 95 million new vehicles per year. Leading countries for auto sales, outside the mature markets of the US, Europe, and Japan, include Brazil, Russia, India, and China (the BRIC nations). After several years of annual growth, worldwide light vehicle sales dipped slightly in 2018 amid rising trade tensions and slower demand in China and some other emerging markets.

    The US automobile dealer industry includes about 47,000 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 serving a local market. The US industry is highly fragmented: the top 50 companies generate less than 15% of revenue. About 45% of dealerships have fewer than five ...

     
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