For all the unexpected twists and turns 2025 brought for dealers, the foundation of the industry remains incredibly stable. We see this clearly in the 2025 Year-End Automotive Franchise Activity Report from Urban Science. According to the report, 95% of core-based statistical areas (CBSAs) across the United States experienced virtually no net change in dealership count, fluctuating by no more than one store throughout the year.
However, this doesn’t mean automotive retail was stagnant. As the market continues to transform, understanding the exact footprint of retail operations gives you the competitive edge needed to optimize your sales strategies and network planning.
Steady Rooftops, Streamlined Franchises
The total count of physical dealership locations grew slightly, rising from 18,374 in 2024 to 18,398 in 2025. While the physical retail footprint expanded, the number of franchises (the individual automotive brands sold within those dealerships) experienced a slight contraction. Franchise counts fell from 30,124 to 29,708 over the same period.
When we evaluate sales performance, 2025 delivered solid gains for dealerships before an anticipated cooling period later in the year. Overall retail throughput—the average number of vehicles sold per store—increased by 16 units to reach 889 units per dealership. However, forecasting models project a slight dip in performance, estimating that throughput will settle at 877 units per store in 2026. EV sales saw a 12% year-over-year increase, however due to the expiration of federal tax credits that is a trend that is unlikely to continue in 2026.
Regional Trends: Precision in Local Markets
Regional data reveals an automotive map defined by high stability, punctuated by isolated pockets of notable growth and contraction.
- Top Growth Markets: New Jersey led the nation with a net increase of nine dealerships. Texas followed closely with eight new rooftops, while Florida, Georgia, and South Carolina each added six stores, highlighting continued retail strength in the Southeast and Sunbelt regions.
- Market Contractions: Conversely, Pennsylvania saw the largest decline, losing eight dealerships. California and Missouri also experienced slight contractions, each losing five stores.
Optimizing Your Network for the Future
2026 has already been as turbulent a year as we saw in 2025, so it is encouraging to know that automotive retail is able to maintain stability no matter what might happen. Staying on top of the day-to-day craziness can often provide a short-term benefit, but it’s also important to take a step back and look at the big picture.
“Despite minor fluctuations throughout the year, 2025 reflected overall stability across the U.S. automotive retail network, but those figures only tell part of the story,” said Mitch Phillips, global director of data at Urban Science. “As the landscape continues to change, long-term, science-driven network planning grounded in daily sales data is essential to confident decision-making and sustained dealership efficiency and profitability.”
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