Study finds franchise dealer count steady, throughput hits post-pandemic high

Image courtesy of Urban Science.
The number of franchise dealerships in the U.S. remained stable in 2023, according to the latest research from Urban Science.
The automotive consulting and technology firm’s 2023 year-end Automotive Franchise Activity Report found there were 18,347 dealership rooftops nationally as of Dec. 31, 90 more than at the end of 2022. Meanwhile, the number of franchises — the brands a dealership sells — dropped to 30,504 in 2023, a year-over-year decrease of 1,050 franchises.
The study also showed a 13% rise in new-vehicle sales, primarily driven by non-retail sales.
Annual dealership throughput — the number of vehicles a dealership sells — rose 92 units, from 759 in 2022 to 851 last year, the highest level since the COVID-19 pandemic and subsequent chip shortage.
Based on GlobalData’s sales forecast of 16.1 million units in 2024, Urban Science projected throughput to reach 880 units this year.
The report showed 86% of the nation’s core-based statistical areas had zero net change in their dealership count, and another 10% had a net change of just one store. At the state level, California led the U.S. with a net gain of 31 dealerships, ahead of Texas (18) and Florida (15). New York had the largest net decrease with six stores, followed by Nebraska (minus-4) and Virginia and Illinois, each with a net loss of three.
“As the automotive industry continues to transform at a record pace, it’s critical for automakers to tap the power of industry sales data updated daily to understand and anticipate the wide-ranging and quickly changing needs and behaviors of their customers and prospects,” Urban Science director of global data Mitch Phillips said in a news release.
“Preparing to optimally sell and service EVs with a strong base of ICE vehicles still on the road requires high-stakes decision-making that should be rooted in science, not speculation, to help manufacturers and their retailers better compete and achieve sustainable efficiency and profitability during the next 10 years and beyond.”