Andrew Moore, managing director of Deloitte Motor Industry Services, provided an in-depth briefing at last week’s Members’ Committee meeting on the latest market analysis drawn from more than 2000 dealerships nationwide. Andrew said 2025 was on track to set another sales record, driven by population growth and the continued dominance of SUVs and utes, now making up more than 80 per cent of all new vehicle sales. He also highlighted the rapid arrival of new entrants, with up to 100 brands indicating plans to compete in Australia in coming years.
Andrew noted a significant rise in the average new vehicle price, climbing from $35,000 in 2018 to $50,000 today, with consumers spending more overall across a widening product mix.
On dealer performance, he reported that while average profitability has stabilised at 1.5 per cent, operating costs have increased by a third since 2019. The performance gap between the strongest and weakest dealers is widening, underscoring the importance of productivity, cost discipline and a stronger back end. Growth in used vehicle operations, finance penetration and service retention are now critical to sustaining profitability.