Automobile Dealers Industry Profile

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 75 million automobiles in 2024, up by about 2.5% from 2023, according to the European Automobile Manufacturers' Association. China is the largest automobile market based on sales with around 30% of the total world car market.

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, ...