Urban Science: The number of franchising agents remains stable as productivity decreases slightly

That’s at least one spot in the currently stable automotive scene.

On Thursday, Urban Science announced the highlights of mid-2022 Franchise Activity Report (FAR), which shows continued stabilization of the franchised dealer network in the United States despite continued inventory shortfalls during the first six months of the year.

As of July 1, Urban Science said there are five (rooftops) dealerships in the country compared to the same date in 2021 (18,235 this year compared to 18,230 last year).

Experts said the number of franchises — brands sold by the agent — fell slightly from 31,646 last year to 31,579 over the same period.

According to an Urban Science report, 99% of primary statistical areas (CBSAs) in the United States had almost no net change (plus or minus one store) in agents.

Experts said 91% of CBSAs had no actual net change in dealerships, while 4% of (net) CBSAs lost at least one store and 5% (net) gained at least one store.

Urban Science discovered that the most significant changes statewide were net increases in California (top 12) and Texas (top 7) and net decreases in Michigan (bottom 5), Florida (bottom 4) and Indiana (bottom 4).

With the current range of industry sales forecasts for 2022 slightly lower than last year and the number of dealers remaining stable throughout Q1/Q2 of 2022, Urban Science expects average productivity—the number of vehicles a dealership sells—to drop just below 826 units. per store in the past year to 821 units in 2022.

But while average productivity is expected to decline, experts said dealers stand a great opportunity to gain momentum and competitive advantage by positioning themselves to meet rapidly evolving consumer needs, including increased demand for electric vehicles (EVs).

While industry sales declined slightly during the first quarter/second quarter of 2022, experts said electric vehicle sales in the US continued to grow.

Urban Science reports that US electric vehicle sales increased 41% in the first half of 2022 compared to the same time frame in 2021; The share of electric vehicle sales increased from 3.6% of total new vehicle sales in the United States in the first half of 2021 to 6.2% during the same period in 2022 – an increase of 72% year-over-year.

According to Urban Science DataHub | New sales, two states are the primary drivers of electric vehicle sales in the United States:

—One third of all electric vehicles sold in the US were sold in California during Q1/Q2 2022.

—Florida has the second largest electric vehicle sales volume in the country but expanded its margin in Q1/Q2 of 2022 compared to last year.

—While Florida also ranked second in electric vehicle sales during Q1/Q2 of 2021, it overtook New York by a margin of about 1,000 units.

Florida’s lead over New York expanded to more than 10,000 units during Q1/Q2 of 2022.

—Thanks to a 64% annual increase in EV sales in Florida during Q1/Q2 2022, the Southeast became the fastest growing EV sales region in the US over the same period with a 52% increase in EV sales overall .

“While adoption of electric vehicles continues to climb sharply nationally, Urban Science continues to lead the auto industry forward by helping manufacturers and dealers adopt science-based approaches to electric vehicle forecasting, network planning, and agency infrastructure that help them meet—and benefit from— The high prevalence said Mitch Phillips, global data manager at Urban Science, in a press release.

“We leverage the power of near-real-time industry sales data to give our customers instant insight into EV adoption – right down to the narrowest of geographic scales – that enables OEMs and dealers to ensure their stores are prepared to meet testing, shipping and service demands effectively and efficiently, in a way that will enable them to thrive in the short future. and the long-term for electric vehicles,” Philips continued to say.

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