Industry Analysis & Industry Trends
The past five years have been chaotic for the automotive sector. As new vehicle sales slowed, new car dealers increasingly looked to their parts and service departments for revenue. In the next five years, firms will continue to shift to parts-and-service-oriented business models to revive revenue. Additionally, the introduction of new European-based models that cater to consumer preferences of fuel efficiency will encourage drivers to trade in for new cars... purchase to read more
Industry Report - Industry Products Chapter
New car dealers sell new and used vehicles and provide parts and repair services, with the latter driving an increasing share of industry revenue. In 2013, parts and services departments bring in about 14.9% of industry revenue, up from 11.9% in 2008. Consumers are driving their vehicles longer and choosing used vehicles over new, fueling growth in the maintenance-oriented parts and services segment.
In 2013, new vehicle sales generate an estimated 53.5% of industry revenue. Demand for new vehicles fell during the recession as consumer spending dropped, but has since picked up. New car dealers continue to benefit from pent-up demand being released, new models, low interest rates and easing credit terms... purchase to read more