PwC surveyed the current situation, key factors and the outlook for the coming years in the car dealers industry in Slovakia.
Key survey findings
Although the volume of new car sales increased in 2011 and early 2012, the tough competition, low margins and continuous import of used cars made financial results being unchanged or becoming worse for the majority of dealers. However, dealers are optimistic and consider the car dealer business offering positive perspectives in long-term, still with possible negative trends in near future. The positive expectations were received from large dealers, who are running business for many years and have already implemented efficiency programs in their sales area.
The market gets consolidated, the number of new dealers entering the market decreases. Dealers aim to provide more services including sale of used cars and consider multi-branding. Cost reduction is a general response to the economic environment, primarily focused on marketing costs as well as on staff costs. An overall feedback from dealers is the call for improved cooperation with car importers in areas such as price policy and marketing support.