National Industry Overview
Figures and Statistics noted in the below industry overview have been sourced from IbisWorld Retail Trade (G3911) Report published in December 2024.
The Motor Vehicle Dealers industry in Australia, includes dealerships that primarily sell new or used motor vehicles to consumers, companies, and government entities, while also offering after-sale services. The industry generated $68.5 billion in revenue in 2024-25, with an annualised growth rate of 4.8% over the past five years. Major players in the industry include Eagers Automotive, Peter Warren Automotive Holdings, and Autosports, with Eagers Automotive holding a 13.8% market share.
Emerging Trends
In recent years, motor vehicle dealerships in Australia have seen significant changes, with a notable trend being the emergence of Automalls within shopping centres. These Automalls consolidate multiple car brands and dealerships into a single, convenient location, offering a diverse range of vehicles and services under one roof. This model leverages the high foot traffic and accessibility of shopping centres, making it easier for consumers to explore and purchase vehicles while engaging in other retail activities.
The shift towards Automalls reflects broader trends in consumer behaviour, emphasising convenience and integrated shopping experiences. This innovative approach is providing a modern, streamlined alternative to traditional standalone dealerships.
Consolidation & Market Dynamics
The industry is consolidating rapidly as major dealers engage in acquisitions to build scale and enter new markets. Moderate barriers to entry include financing stock acquisition and property leases. The eastern seaboard dominates establishment numbers due to population density and access to major port facilities, while Western Australia and Tasmania have longer replacement cycles, making them less lucrative markets. Advertising expenses are high as dealers need to differentiate themselves and attract new customers. Purchase costs make up the majority of revenue, but rising car prices and strong sales volumes have boosted profitability.
Electric Vehicle Momentum Drives Growth
The industry is set for steady growth, driven by a shift towards utility vehicles, SUVs, and electric vehicles. Government incentives for electric and hybrid vehicle sales support this trend. Market consolidation will raise barriers to entry, and new EV brands will enter the Australian market. Government clients are major demand drivers for greener vehicles, with state governments setting electric vehicle procurement targets.
The industry is regulated by various state and federal policies, including the Franchising Code of Conduct and the New Vehicle Efficiency Standard. Successful businesses guarantee the supply of key inputs and control inventory to remain profitable. Dealers benefit from operating in locations close to key suppliers and accessible to consumers.
Implications for the Queensland Property Market
There has been a dearth of in use car dealership transactions within Queensland within the last few years, primarily due to this being a specialised asset class with limited market participants that are already well established.
The market for established motor vehicle dealerships is underpinned by the limited availability of sites suitable for development that provide high levels of exposure and appropriate surrounding demographics. As well as this, difficulties securing development approvals and high construction costs due to the extensive fitout requirements specified by car manufacturers impact on the feasibility of new developments.