Urban Science announced highlights from its 2022 midyear Automotive Franchise Activity Report (FAR), which shows continued stability for the U.S. automotive retail network despite continued inventory shortages during the first six months of the year. As of July 1, 2022, there were five more dealerships (rooftops) in the country compared to the same date in 2021 (18,235 this year compared to 18,230 last year); the number of franchises – brands a dealership sells – decreased slightly from 31,646 last year to 31,579 during the same period.
According to the Urban Science FAR, a record-high 99% of core-based statistical areas (CBSAs) in the U.S. had virtually no net change (+/- one store) in dealerships. 91% of CBSAs had no actual net change in dealerships; 4% of CBSAs (net) lost at least one store and 5% (net) gained at least one store. The most significant state-level changes were net increases in California (+12) and Texas (+7) and net decreases in Michigan (-5), Florida (-4) and Indiana (-4).
Since the current range of industry sales forecasts for 2022 is slightly less than last year and dealer count remained stable throughout Q1/Q2 2022, Urban Science projects average throughput – the number of vehicles a dealership sells – to fall slightly from 826 units per store last year to 821 units in 2022. But while average throughput is expected to dip, dealers have significant opportunity to gain momentum and competitive advantage by positioning themselves to meet rapidly evolving consumer needs, including heightening demand for electric vehicles (EVs).
U.S. EV sales and market share continue to rise
While industry sales declined slightly during Q1/Q2 2022, EV* sales in the U.S. continued to grow. Urban Science reports EV sales in the U.S. increased 41% in the first half of 2022 compared to the same timeframe in 2021; the share of EV sales also increased from 3.6% of all U.S. new-vehicle sales in the first half of 2021 to 6.2% during the same period in 2022 – a 72% year-over-year increase.
State-level EV sales insights
According to the Urban Science DataHub | New Sales, two states are the primary drivers of EV sales in the U.S.:
One-third of all EVs sold in the U.S. were sold in California during Q1/Q2 2022.
Florida is home to the nation’s second-highest EV sales volume but expanded its margin in Q1/Q2 2022 compared to last year.
While Florida also ranked second in EV sales volume during Q1/Q2 2021, it edged out New York by a margin of about 1,000 units.
Florida’s lead over New York widened to over 10,000 units during Q1/Q2 2022.
Led by Florida’s 64% year-over-year increase in EV sales during Q1/Q2 2022, the southeast region has become the fastest-growing region for EV sales in the U.S. during the same period with a 52% uptick in EV sales overall.
“As EV adoption continues its sharp ascent nationwide, Urban Science continues to lead the auto industry forward by helping manufacturers and dealerships adopt science-driven approaches to EV forecasting, network planning and dealership infrastructure that position them to meet – and capitalize on – the groundswell of consumer interest that continues to build,” said Mitch Phillips, global director of data, Urban Science. “We tap the power of our near-real-time industry sales data to give our clients an instantaneous view of EV adoption – down to the narrowest geographic levels – that empowers OEMs and dealers to ensure their stores are prepared to meet test-drive, charging and service demands effectively and efficiently, and in a way that sets them up to thrive in the short- and long-term EV future.”
Additional EV considerations
Urban Science’s recently released Dealership Transformation Index shares research and insights related to the EV future, plus considerations to help OEMs and dealers meet growing demand while they still can.
*EVs are defined as plug-in hybrid and battery electric vehicles within the Urban Science FAR
