Mid-year report shows EV sales rising as overall sales sag

Image courtesy of Urban Science.
While overall dealership sales sagged in the first half of 2025, electric vehicles continued to gain momentum, according to the latest report from Urban Science.
The automotive consulting and technology firm’s 2025 Mid-Year Automotive Franchise Activity Report showed dealerships on pace to sell an average of 825 units for the full year based on data from Urban Science and GlobalData through June 30. That’s 48 units less than the 2024 average, a drop of 5.5%.
EVs, meanwhile, showed a 10% increase from 2024’s sales record, rising to 171 units per dealership. Urban Science’s definition of EVs includes battery electric, plug-in hybrid and hybrid vehicles.
Whether that trend continues is uncertain. The federal tax credit of up to $7,500 for new EVs and $4,000 for used EVs is scheduled to expire Sept. 30, which could have a substantial impact on EV sales.
The report, based on data from various sources including feeds from automotive manufacturers and phone and field verification, also found a slight decline in the number of franchises nationwide since the end of 2024, but with more dealership locations.
Franchises fell below the 30,000 mark to 29,813 in July, a 1% decrease. But the dealership count inched up by 19 stores to 18,393.
Urban Science said neither of those changes are significant, noting the stability of the market. The report showed 97% of U.S. core-based statistical areas had virtually no net change — defined as one or zero additions or subtractions — up from 95% at the end of 2024.
Texas led all states in dealership growth, adding seven new stores so far this year, followed by Louisiana, Michigan, North Carolina and New Jersey with four each.
“Though there was a slight decline in franchises during the first half of the year, 2025 has shown signs of stability in other areas, with steady increases in dealership and EV sales counts,” Urban Science global director of data Mitch Phillips said. “Regardless of the trend direction, these fluctuations underscore the importance of understanding real-time sales data and leveraging it to create an optimal, science-driven and competitive sales and service network aligned with customer needs.
“Doing so positions automakers and their dealerships to drive loyalty and profitability as consumer preferences and sales patterns continue to transform, and to better mitigate risks and seize opportunities regarding key business priorities across sales and service operations.”
The report can be downloaded here.