Glen Waverley Traders Association president Christo Christophidis said traders were suffering because their customers found it difficult to find a car park.

"Car parking can certainly be a challenge in the Glen Waverley retail precinct and can be a turn-off for some of our customers."

Mr Christophidis said Kingsway was a thriving area that had experienced phenomenal growth in the past seven years, but nearby parking lots had not increased.

The association will this week meet the council's economic development manager, Jeff McAlpine, to discuss upgrading car parks with better lights, increased visibility of cars and redesigning of lots to maximise the number of cars that can park in them.

Traders will push for another multi-level car park on Montclair Avenue.

"The land there is not maximised at all," Mr Christophidis said.

"We demand an answer from [the] council to help offset the huge demand for car parking. People are parking illegally.

"We need help from the council to resolve this issue.

"Their answer has been to propose a new multi-storey car park in Euneva Avenue, but that is in the wrong location. It's away from the main Kingsway area where the traffic congestion and parking problems arise. It will be of little help in the long term."

Monash Mayor Paul Klisaris said that under the parking precinct plan, the council had built 144 parking spaces at Bogong Avenue at a cost of $2.7million and planned to construct a further 260 spaces, costing more than $6million, at Euneva Avenue to improve business activity in the area.

"To date, the council has collected $2.37million in contributions from developers under the parking precinct plan.

"Under the plan, developers contribute less than half of the costs of car parking, with the community, through the council, funding the remainder," Cr Klisaris said.