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NZ ANZSIC G3910NZ | Industry Report

Motor Vehicle Retailing in New Zealand Industry Data and Analysis

AL
Andrew Ledovskikh
Analyst Melbourne, Australia May 2025

The industry has faced a highly volatile trading environment. Over the two years through 2021-22, at the height of the pandemic, the industry experienced strong revenue growth. Sales flourished while household discretionary incomes rose and there was reduced competition for spending due to lockdowns, restrictions and border closures. However, high inflation, falling real household discretionary incomes, rising interest rates and declines in consumer sentiment have all led to weakening trading conditions for the industry over the four years through 2025-26. New car sales have cratered since 2022-23, with a 14.5% drop in new vehicle sales expected in 2024-25. Amid weakening economic conditions, consumers aren’t just delaying replacing older vehicles – they’re also often turning to the used car market instead of purchasing new vehicles. Overall, revenue is expected to have fallen at an annualised 5.3% over the five years through 2025-26 to $11.7 billion. This includes an anticipated decline of 1.6% in 2025-26.

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What's included in this industry analysis

IBISWorld's research coverage on the Motor Vehicle Retailing industry in New Zealand includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.

About this industry

What's this industry report about?

The Motor Vehicle Retailing industry in New Zealand operates under the ANZSIC industry code G3910NZ. The Motor Vehicle Retailing industry in New Zealand includes dealers that sell new and used motor vehicles. These vehicles include passenger motor vehicles, commercial vehicles, motorcycles, RVs and trailers. Motor vehicle dealerships also provide after-sales services, such as vehicle maintenance and repair. Related terms covered in the Motor Vehicle Retailing industry in New Zealand include sports utility vehicle (suv) and electric vehicle (ev).

What's included in this industry?

Products and services covered in Motor Vehicle Retailing industry in New Zealand include Sports utility vehicles (SUVs), Passenger motor vehicles and Utility vehicles (Utes).

What companies are included in this industry?

Companies covered in the Motor Vehicle Retailing industry in New Zealand include Colonial Motor Company and LWC.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Motor Vehicle Retailing industry in New Zealand.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Motor Vehicle Retailing industry in New Zealand.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Motor Vehicle Retailing industry in New Zealand.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Motor Vehicle Retailing industry in New Zealand. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Motor Vehicle Retailing industry in New Zealand. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Motor Vehicle Retailing industry in New Zealand. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Motor Vehicle Retailing industry in New Zealand. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Motor Vehicle Retailing industry in New Zealand.

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Frequently Asked Questions

What is the market size of the Motor Vehicle Retailing industry in New Zealand in 2026?

The market size of the Motor Vehicle Retailing industry in New Zealand is $11.7bn in 2026.

How many businesses are there in the Motor Vehicle Retailing industry in New Zealand in 2025?

There are 2,120 businesses in the Motor Vehicle Retailing industry in New Zealand, which has declined at a CAGR of 0.1 % between 2020 and 2025.

How may import tariffs affect the Motor Vehicle Retailing industry in New Zealand?

The Motor Vehicle Retailing industry in New Zealand is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Motor Vehicle Retailing industry in New Zealand?

The Motor Vehicle Retailing industry in New Zealand is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Motor Vehicle Retailing industry in New Zealand grown or declined over the past 5 years?

The market size of the Motor Vehicle Retailing industry in New Zealand has been declining at a CAGR of 5.3 % between 2020 and 2025.

What is the forecast growth of the Motor Vehicle Retailing industry in New Zealand over the next 5 years?

Over the next five years, the Motor Vehicle Retailing industry in New Zealand is expected to grow.

What are the biggest companies in the Motor Vehicle Retailing industry in New Zealand?

The biggest companies operating in the Motor Vehicle Retailing industry in New Zealand are Colonial Motor Company and LWC

What does the Motor Vehicle Retailing industry in New Zealand include?

Sports utility vehicles (SUVs) and Passenger motor vehicles are part of the Motor Vehicle Retailing industry in New Zealand.

Which companies have the highest market share in the Motor Vehicle Retailing industry in New Zealand?

The company holding the most market share in the Motor Vehicle Retailing industry in New Zealand is Colonial Motor Company.

How competitive is the Motor Vehicle Retailing industry in New Zealand?

The level of competition is high and increasing in the Motor Vehicle Retailing industry in New Zealand.

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