The economic research institution, Urban Science, today revealed the results of its annual 2022 year-end Automotive Franchise Activity Report (FAR), which shows “continued stability for the U.S. automotive retail network, despite the challenges the industry faced regarding ongoing inventory shortages and relatively high car-loan interest rates last year.” As of January 1, 2023, there were 27 more dealership rooftops in the U.S. compared to the same date in 2022 (18,257 this year compared to 18,230 last year); the number of franchises, (meaning brands a dealership sells) decreased slightly from 31,646 to 31,554 during the same period.
According to the Urban Science FAR, a record-high 97 per cent of areas in the U.S. had virtually no net change (+/- one store) in dealerships. 88 per cent of areas had no actual net change in dealerships; five per cent of areas lost at least one store and seven per cent gained at least one store. The most significant state-level changes were net increases in California (+25) and Texas (+9) and net decreases in Michigan (-9), and Indiana (-7).
“Despite the overall decrease in sales in the U.S. in 2022, there are reasons for optimism as non-retail and EV sales continue to climb,” said Mitch Phillips, director, global data and analytics, Urban Science. “It’s clear the EV future is here, and we’re seeing exponential sales growth – and growth potential – in EV adoption in locations that have not been considered hotbeds in the past. Leading automotive manufacturers continue to inform their high-stakes EV network and infrastructure planning decisions with near-real time industry sales data and an EV forecasting approach rooted in science, not speculation, to ensure they’re prepared to meet rapidly changing consumer preferences and behaviour now and in the future.”
