Since 2007 the number of auto dealerships in Italy has dropped 31%, including a 7% fall in 2012.
According to data released by the automotive think tank Quintegia the number of auto dealerships in Italy dropped from 3, 450 in 2002, to 2,950 in 2007 and 2,011 at the beginning of 2013. Dealerships are closing due to the drop in demand and therefore sales, as auto market in Europe heads towards the sixth consecutive year of decline.
Last year new car sales in Italy dropped 19.8% to 1.4 million, accounting for the fifth year of drop, and this year sales are expected to fall to around 1.3 million. Quintegia predicts that by 2017 there will be about 1,500 dealerships in Italy. The fact that there are fewer dealerships does not mean they sell more cars. Last year the number of vehicles sold per brand declined to 630 units from 1,050 units in 2007.
According to the Federauto trade group last year auto dealerships in Italy had around 1.2 employees, accounting for 40% of the jobs in the auto sector. Quintegia Chairman Leonardo Buzzavo advised dealerships to turn their attention to the sale of used cars and after-sales maintenance, and not rely solely on selling new vehicles.