Urban Science Report Predicts Dealership Throughput Rebound
The average number of new vehicles sold by U.S. dealerships is forecast to increase by over 100 in 2021, finds Urban Science’s Automotive Franchise Activity Report.
The report puts the throughput figure at 910 vehicles this year, a jump of 103 vehicles from 2020's average sales of 807 vehicles per store. The last time throughput rebounded like this was in 2012, when dealerships went from 719 to 812 vehicles per store.
Even if dealers achieve a throughput of 910, the figure is still the lowest of the decade. From 2014 through 2019, annual throughput hit 921 vehicles or higher.
Urban Science also reported the number of U.S. new-vehicle dealerships increased to 18,203 in the first half of 2021. The count as of July 1 increased by 46 stories since January 1.
California added 24 stores since the beginning of the year, marking the most additions sine 2015 when the state added 16 dealerships, reported Urban Science. The Golden State had lost seven dealerships in 2020. Texas added eight dealerships and New York added five.
Mitch Phillips, global director of data at Urban Science called the increase “minor" noting “It's virtually no net change. So, it's stable.”
Still, the increase comes on the heels of a decline in new vehicle dealerships in 2020 and 2019.
And other states saw decreases. Tennessee lost four stores, while Illinois and Kansas each lost two.