The number of franchised dealer sites in the UK increased last year to their highest level since 2011, according to new data from the International Car Distribution Programme.
Research for the ICDP’s European Car Distribution Handbook shows how main dealer sales outlets grew 1% year-on-year from 4,487 to 4,532 sites. However, the UK experience contrasted to a 2.5% fall in outlets across Western Europe.
As the UK sector consolidates the number of outlets has decreased every year since 2007, except for a 0.7% increase in 2011. The number of dealer sites in 2007 was 4,881.
Year-on-year average sales per site increased 10% in 2014 from 469 to 516 units.
The ICDP report shows how the number of dealer outlets across Western Europe fell by 2.5% in 2014.
“Network performance in terms of new car sales per dealer is still being driven to a greater extent by the fortunes of the brand and the general market trends. However, it should be remembered that a 5% reduction in sales points each year from the data in this report, would result in a 30% reduction by January 2020, equivalent to over 13,400 fewer main dealers in that period,” said the ICDP reprt.
The biggest UK car franchises in 2014 by network size were Vauxhall with 349 outlets (2013: 354), followed by Ford with 319 (2013: 334) and Peugeot with 238 (2013: 245).
The research also shows how representation since 2004 amongst Asian volume brands, primarily Hyundai and Kia, has grown, while both premium and volume European outlet numbers have declined.
However, sales achieved by premium outlets increased by 37% with fewer sites selling higher volumes. Sales amongst the Asian brands have grown 16% per outlet, outpacing the growth of their networks. However sales from the volume European brands fell 14%, faster than the decline in their networks.
