Industry Analysis & Industry Trends
Over the five years to 2016, rising per capita income is expected to drive revenue growth for the Global Car and Automobile Sales industry. The industry's dependency on employment rates, global consumer spending, financing rates and the world price of crude oil make it vulnerable to economic shifts. In the coming years, pent-up demand, improving per capita income and growing consumer sentiment are expected to drive automobile sales... read more
Starting a New Business
The Global Car and Automobile Sales industry experiences moderate barriers, including government regulations, manufacturer franchise agreements and start-up costs. For example, in California, the largest new car market in the United States, prospective new car dealers must submit to background and credit checks, obtain a surety bond and provide a current franchising agreement. In China, barriers to entry were previously low. However, as the industry has expanded, the government has increased the legislation that regulates dealers.
Dealer licenses and franchise agreements have to be renewed annually, usually based on performance and sales targets... read more