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New Car Dealer Franchises in Australia - Market Research Report (2015-2030)

Matt Reeves Matt Reeves Melbourne, Australia Last Updated: September 2025 ANZSIC OD5674 Spotlight Report

Revenue

$76.3bn

2025-26

$76.3bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

71,826

Businesses

3,679

Wages

$X.Xbn

New Car Dealer Franchises in Australia industry analysis

The New Car Dealer Franchises industry has expanded over the past five years, despite volatile conditions. Supply chain shortages early in the period saw weaker sales. However, sales skyrocketed as these disruptions cleared. SUVs and utility vehicles have provided the majority of expanding new car sales. SUVs now account for over 60.0% of new car sales and traditional passenger vehicle sales have slumped to below 15.0%.

Trends and Insights

  • Sales at new car dealer franchises have surged over the past five years, driven by strong demand for SUVs, utility vehicles and EVs. The number of dealerships catering to the to these trends has expanded.
  • SUVs have become increasingly popular among private buyers, with sales rapidly expanding. However, this market segment’s share of total sales has declined over recent years. Cost-of-living pressures have slowed growth in new car sales to private customers.
  • Barriers to entry to the industry are moderate. New car dealers must obtain a licence, with different requirements in each state. Start-up costs can be significant, including purchasing or leasing land and acquiring an inventory of cars.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated $76.3bn in 2025.

Trends and Insights

New and used car sales volumes have surged

  • Revenue for the New Car Dealer Franchise industry is expected to climb over the five years through 2025-26. While demand for new and used cars has fluctuated, sales volumes of both new and used cars are set to increase over the period.
  • Additional trends and insights available with purchase
New Car Dealer Franchises in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

A growing population will drive demand for new motor vehicles over the coming years

  • The population is set to expand at a moderate pace over the next five years, with the bulk of this likely concentrated around major metropolitan centres. However, this trend will necessitate constructing new housing in outer suburban and regional areas as these city centres become increasingly crowded.

Biggest companies in the New Car Dealer Franchises in Australia

There are no companies that hold a market share exceeding 5% in the New Car Dealer Franchises in Australia industry.

Products & Services Segmentation

New Car Dealer Franchises in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Passenger vehicles, SUVs and Light commercial vehicles. Passenger vehicles is the largest segment of the New Car Dealer Franchises in Australia.

Trends and Insights

Passenger vehicle sales have plummeted as Australians have shifted preferences to SUVs

  • This segment includes light, small, medium, large and upper large passenger vehicles. The latest data released by the Federal Chamber of Automotive Industries (FCAI) shows that the Toyota Corolla and Toyota Camry have retained their crown as the most popular passenger vehicles in Australia.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry includes franchise dealerships that primarily sell new or used motor vehicles to consumers, companies and government entities. Industry firms also offer after-sale services for motor vehicles.

What's included in this industry?

Products and services covered in the New Car Dealer Franchises industry in Australia include Passenger vehicles, SUVs, Light commercial vehicles, Sports cars, people movers and micro cars and After-sales services.

Companies

Companies covered in the New Car Dealer Franchises industry in Australia include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the New Car Dealer Franchises industry in Australia include sports utility vehicle (suv), zero-emission vehicle and people mover.

Industry Code

ANZSIC 2006

ANZSIC 3911 - New Car Dealer Franchises in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Sales at new car dealer franchises have surged over the past five years, driven by strong demand for SUVs, utility vehicles and EVs. The number of dealerships catering to the...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

SUVs have become increasingly popular among private buyers, with sales rapidly expanding. However, this market segment’s share of total sales has declined over recent years. ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Barriers to entry to the industry are moderate. New car dealers must obtain a licence, with different requirements in each state. Start-up costs can be significant, including...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

All states require vehicle dealer licensing for selling five or more cars annually, with a warranty period based on vehicle age and kilometres. The Franchising Code of Conduc...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit margins for new car dealer franchises increased due to rising car prices and strong sales. However, they're expected to decline slightly by 2025-26 due to weakening de...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the New Car Dealer Franchises industry in Australia in 2025?

The market size of the New Car Dealer Franchises industry in Australia is $76.3bn in 2025.

How many businesses are there in the New Car Dealer Franchises industry in Australia in 2025?

There are 3,679 businesses in the New Car Dealer Franchises industry in Australia, which has grown at a CAGR of 4.5 % between 2020 and 2025.

Has the New Car Dealer Franchises industry in Australia grown or declined over the past 5 years?

The market size of the New Car Dealer Franchises industry in Australia has been growing at a CAGR of 1.5 % between 2020 and 2025.

What is the forecast growth of the New Car Dealer Franchises industry in Australia over the next 5 years?

Over the next five years, the New Car Dealer Franchises industry in Australia is expected to grow.

What does the New Car Dealer Franchises industry in Australia include?

Passenger vehicles and SUVs are part of the New Car Dealer Franchises industry in Australia.

How competitive is the New Car Dealer Franchises industry in Australia?

The level of competition is high and steady in the New Car Dealer Franchises industry in Australia.

Related Industries

Widen your competitive advantage with related industries

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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