A new survey by Cox Automotive Australia in partnership with the Australian Automotive Dealers Association (AADA) has shown that Australia’s new car Dealers are very concerned about strong pressures to lower prices, while at the same time their costs are rising. David Blackhall, AADA CEO stated: “Our members are reporting that their situation is tough. Profits are lower, and customer traffic to Dealerships is below average. However, they expect conditions to improve somewhat during this second half of the year”.
Mr. Blackhall also noted that this was the first of what will be regular six-monthly surveys. “We look forward to being able to both analyse and report on significant trends within the automotive dealership industry”.
The survey asked respondents to rate the top factors holding back their businesses over the first six months of the year. Margin compression, customer confidence, and rising expenses came through as the major concerns. They further reported that they were facing strong pressures to lower prices in the context of rising costs and growing inventory levels.
Data for the Cox Automotive Australia Dealer Sentiment Index research was gathered via an online survey of privately owned and publicly listed franchise auto Dealers. The H1 2018 results were based on 92 Dealer respondents across the country from August 6th to August 24th, 2018. This is the first published report.
You can download a full copy of the H1 2018 Cox Automotive Australia Dealer Sentiment Index from here.