Welcome to the 2014 Moore Stephens Automotive Key
Performance Indicators for Automotive Retailers – Non Luxury
and Luxury Editions
The Australian new car market has continued its upward sales
trend with official sales figures for the calendar year 2013,
showing sales up 2.2 % to 1.138 million units, surpassing the 2012
sales record of 1.112 million units.
The market performance was supported largely by:
Franchisor incentives via interest rate campaigns and value
Car affordability at its best level in decades
Relatively low interest rates and strong employment
Increased consumer sentiment
Within this environment we have seen a marginal increase in
average dealer profitability. Overall, there have been consistent
results within new and used car profitability. The continuation of
franchisor low interest incentives, access to disposable income and
an increase in car affordability has kept sales volume levels at an
all-time high. The trend towards SUV's is continuing with the
segment showing the greatest growth while the demand for small
passenger vehicles remains strong.
After-sales operations have remained static, with parts and
service profitability in line with prior year results. Finance and
Insurance revenue has improved as there continues to be a focus on
increasing finance penetration and income per contract. Maximising
service and aftermarket opportunities using effective CRM solutions
will be critical for dealership profitability in the future.
The major costs pressures are in rent, facility developments and
general overheads. With an increase in online sales activity,
automotive retailers should consider where future investment is
required and whether physical facility investment is as important
as it has been in the past.
In 2014, we expect profit margins to be stable rather than
increasing with a high level of reliance on franchisor incentives.
The finance and insurance business is also expected to be of
greater importance to overall dealership profitability. Another key
success factor will be the provision of superior after-sales
service to take advantage of increased unit sales.
At Moore Stephens Automotive we expect 2014 vehicles sales to be
stable at 1.1 million sales.
In response to growing interest in the commercial use of drones or RPAs in Australia, CASA has developed new regulations.
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