Balram Dabhade |
31 August 2017
The dealer profitability as measured by net profit as a percentage of sales (NP%S) for the second quarter of 2017 was recorded at 2.3% and for the first half of 2017 was at 1.9%. This is the first time since 1997, the Motor Industry profitability has shown opposite movement to the consumer confidence in Australia. The industry saw its sales revenue increase by 10%, overall dealership gross increased by 7%, but the selling gross decreased by 5% and the overheads increased by 10%. Thus the profitability eroded by 0.2% as compared to first half of 2016.