The total output for the year 2022 is expected to fall, but the dealers can gain momentum by meeting the needs of the consumers- including the demand for electric vehicles (EVs).
The Automotive Franchise Activity Report by Urban Science for the midyear 2022 announced that the stability of the USA automotive retail network continues to remain intact despite inventory shortages in the first half of the year. While the number of dealerships in 2022 was five more than those in 2021, the number of sales of a dealership by brands decreased from 31,646 to 31,579 in 2022.Â
The Important Stats of the Report
The report said that 99% of core-based statistical areas had no net change in dealerships in the US. On the contrary, 91% of CBSAs witnessed no net change in dealerships.Â
Apart from this, while 4% of CBSAs lost at least one store, 5% gained a minimum of one store. California witnessed the most crucial state-level changes as a net increase of +12, and Indiana suffered a net decrease of -4. The number of dealership sales fell slightly- from 826 units per store in 2021 to 821 units per store in 2022. The dealer count, however, remained stable in the Q1 and Q2 of 2022, and the range of industry sales forecast for the year 2022 is comparatively less than 2021.Â
The Rising Demand for EVs
While the sales witnessed a slight decline in the industry, the EV market continued to grow. The EV sales, according to the report, increased by 41% in the first six months of 2022 compared to the first half of 2021. The share of EV sales also experienced an increase- from 3.6% of the total new vehicle sales in the US (in 2021’s first half) to 6.2% (in 2022’s first half). This means a 72% increase over the year.Â
Other insights include:Â
- 1/3rd of the total EV sales in the USA were made in California during the 1st and 2nd quarters of 2022.Â
- The second-highest number of EVs sold in the US was in Florida.Â
- Florida left behind New York in EV sales by around 1000 units.Â
About Urban Science
Urban Science is an automotive consultancy and technology firm serving OEM‘s and dealers. It has its headquarters in Detroit and is responsible for compiling the census of current new vehicle dealerships and franchise information every month. Based on those statistics, it formulates a yearly report known as the Automotive Franchise Activity Report, launched in 1990.
