Industry Analysis & Industry Trends
The Global Car and Automobile Sales industry experienced a significant decline during the global recession, as the industry is vulnerable to economic shifts in employment and spending. While demand for new and used vehicles in mature markets (e.g. Japan, Western Europe and the United States) fell during the economic downturn, the industry flourished in the emerging economies of Brazil, Russia, India and China. The release of pent-up demand for industry products will drive sales over the next five years, and the development of energy-efficient hybrid and electric vehicles is expected to lead the industry into a new era of prosperity... 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. But 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 target... read more