Dealerships, News

A GROWING number of Australia’s franchised new car dealers have reported a decline in satisfaction with some of their manufacturer partners, according to the latest AADA Dealer Satisfaction Survey (DSS)

The survey found cost and profitability pressures remain the top challenge for dealers nationwide. However, the Australian Automotive Dealer Association’s survey did show that several brands have strengthened or maintained positive relationships with their dealer networks with this reflected in strong sales results.

The latest dealer survey reported that overall dealer satisfaction dropped to 50 per cent from 56 per cent last year. The AADA said that this reflects a broad softening across most measures of the dealer-OEM relationship. The sharpest fall was recorded in satisfaction with sustained profitability, which declined to 36 per cent from 47 per cent.

The survey, conducted between June and August 2025, captured responses from 303 dealer principals representing nearly 1300 dealership locations across 27 brands.

AADA CEO James Voortman said the results provide a timely snapshot of an industry in transition.“New car dealers are essentially the biggest investors in Australia’s automotive industry, and the dealer satisfaction survey can help inform them where they should be allocating their capital,” Mr Voortman said.“The industry is facing so much change with the emergence of so many new brands. Dealers are currently facing choices about which brands to partner with and which brands to invest in. 

“This survey provides a picture of which brands have respectful, mutually beneficial relationships with their dealer networks.”

While many brands recorded a downturn in satisfaction, a few OEMs – including Toyota, Porsche, and Lexus – managed to hold steady or improve. 

Toyota in particular reported stronger results on sustained profitability, countering the broader downward trend.

“Having a good relationship with your dealers can often mean success in the market, as demonstrated by our market leader Toyota as well as brands like Kia and GWM,” Mr Voortman said.

“This is the second edition of the survey, and we have already seen some brands turn around their performance in the space of only a year.

James Voortman

James Voortman

“The lesson is that the relationship between a brand and its dealer network can improve if both sides work together and listen to each other.”

The AADA says it will use the results to continue discussions with manufacturers aimed at strengthening cooperation and long-term sustainability across the sector.

 

By Neil Dowling

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