U.S. dealership numbers rose in 2023, according to a recent report from Urban Science.
Urban’s Automotive Franchise Activity Report (FAR) found at the end of last year there were 90 more dealerships in the U.S. compared to year-end 2022—18,347 in 2023 compared to 18,257 in 2022. But there was a notable downturn inside the numbers as franchises–brands a dealership sells– decreased to 30,504 in 2023 from 31,554 a year before (a year-over-year decrease of 1,050 franchises).
The survey results released Feb. 21 from Urban Science is compiled from their list of current new-vehicle dealership and franchise information for all car and light truck brands in the United States. Compiled on a monthly basis, the data comes from a variety of sources, including feeds from automotive manufacturers as well as phone and field verification.
FAR Report
According to 2023 FAR, 96% of core-based statistical areas (CBSAs) in the U.S. had virtually no net change in dealerships: 86% of CBSAs had no actual net change in dealerships; 4% of CBSAs lost at least one store, and 10% gained at least one store.
The most significant state-level changes were net increases in California (+31), Texas (+18) and Florida (+15), and net decreases in New York (-6), Nebraska (-4), Virginia (-3) and Illinois (-3).
Mitch Phillips, director, global data, Urban Science, offered that as the automotive industry continues to transform at a record pace, it’s “critical automakers tap the power of industry sales data updated daily to understand and anticipate the wide-ranging and quickly changing needs and behaviors of their customers and prospects.”
Sales Up 13%
“Preparing to optimally sell and service EV with a strong base of ICE vehicles still on the road requires high-stakes decision-making that should be rooted in science, not speculation, to help manufacturers and their retailers better compete and achieve sustainable efficiency and profitability during the next 10 years and beyond,” said Phillips in a press statement.
To that end, research outlet reported a 13% rise in new-vehicle sales last year, primarily driven by non-retail sales.
Annual dealership throughput rose to 851 in 2023 from 759 in 2022, an increase of 92 units. The 851 is the highest level the U.S. automotive retail dealer network has achieved since the arrival of the COVID-19 pandemic and subsequent chip shortage.
Based on a sales forecast of 16.1 million units, Urban Science projects throughput to rise to 880 units—a new post-pandemic record—in 2024.
