SACRAMENTO, CA —The California New Car Dealers Association (CNCDA) announced today that a federal court has denied motions to dismiss the core claims in CNCDA’s lawsuit challenging Volkswagen’s use of Scout Motors to unlawfully compete against its VW dealers.
In a ruling issued yesterday in CNCDA v. Volkswagen of America, Inc., et al., Chief Judge Cynthia Bashant of the United States District Court for the Southern District of California held that CNCDA properly alleged that Volkswagen Group of America and Scout Motors are violating California law through Scout’s direct-to-consumer reservation program, which bypasses Volkswagen’s franchised dealer network.
The Court adopted CNCDA’s reading of California Vehicle Code § 11713.3(o), finding that the statute’s prohibition on manufacturers competing with their franchisees “directly or indirectly through an affiliate” encompasses Volkswagen’s corporate relationship with Scout — regardless of whether Volkswagen affirmatively directed Scout’s conduct. The Court also rejected the argument that the statute only applies after a completed vehicle sale, holding that Scout’s $100 reservation program constitutes competition in the sale of new motor vehicles. Dealer testimony cited in CNCDA’s complaint outlined how Scout is currently competing against VW dealers.
The Court noted that Scout’s own general counsel admitted during the legislative process for AB 473 (the 2023 bill that amended the law at issue in the case) that the law could prohibit Scout’s direct-to-consumer model in California based on the competition clause specifically included in the bill.
The Court further rejected Scout’s arguments that its DMV licenses shielded it from liability, that its conduct fell within a statutory safe harbor, and that the case represented an impermissible challenge to DMV authority. The Court also dismissed certain secondary claims on procedural grounds unrelated to the merits of CNCDA’s core case. The central claims against both Volkswagen Group of America and Scout Motors will proceed.
“This ruling confirms what California law recognizes: manufacturers cannot use affiliate brands to unlawfully compete against their own dealers. Volkswagen dealers would welcome the chance to sell Scout vehicles to their customers, but Volkswagen continues to shut them out,” said CNCDA President Brian Maas. “In 2023, the California Legislature strengthened dealer protections for exactly this reason, and we are pleased the Court has applied the statute as written.”
About CNCDA For over 100 years, CNCDA has protected and promoted the interests of California’s franchised new car and truck dealers. In 2025, California’s franchised new car dealers sold more than 1.8 million new cars and trucks, employed almost 138,000 people, paid $9.16 billion in state sales tax, and donated $72.09 million to charitable and civic organizations. CNCDA is the nation’s largest state association of franchised automotive dealers, with nearly 1,200 members. We provide dealer advocacy, as well as legal, compliance, and regulatory support.
LA County Superior Court Overrules Sony Honda Demurrers and Motions to Strike; CNCDA Lawsuit Proceeds Against Sony Honda’s Violation of California Franchise Laws
SACRAMENTO, CA —Today, the Los Angeles County Superior Court overruled a series of demurrers filed by American Honda Motor Co., Inc., and Sony Honda Mobility of America, Inc., in a lawsuit filed by the California New Car Dealers Association (CNCDA). In its lawsuit, CNCDA alleges that the defendants are knowingly violating California franchise laws by competing directly against their Honda and Acura franchisees with the Afeela brand. The court rejected the defendants’ attempts to toss the case in today’s order.
In its order, the court found that Sony Honda’s $200 “Reservation Agreement” is the first step toward purchasing an Afeela vehicle. The court also ruled that Sony Honda is sufficiently affiliated with American Honda to allow the case to continue. CNCDA alleges that Sony Honda and its partners are engaging in unfair competition and seeks declaratory and injunctive relief to stop illegal direct-to-consumer sales of Afeela-brand vehicles. After the court’s order, CNCDA’s lawsuit proceeds to discovery and the next stages of litigation.
Assembly Bill 473 (AB 473), enacted in 2023, prohibits automakers from using affiliated brands to compete with their own franchised dealers. Despite this law, Sony Honda and its partners continue to accept deposits from California consumers through its website for new Afeela-branded vehicles, thereby bypassing the state’s Honda and Acura dealerships. They have announced plans to deliver Afeela vehicles directly to California consumers in the second half of 2026.
“Franchised dealers are loyal business partners for the Honda and Acura brands, in many cases building trust and their brand strength over the span of decades,” said Brian Maas, CNCDA President. “By precluding them from selling new and exciting vehicles with the latest technologies, Sony Honda is essentially turning its back on their Honda and Acura dealer partners and the thousands of people they employ. Not to mention, it’s illegal.”
“Sony Honda actively lobbied against AB 473 when it was before the Legislature— and now that it’s the law, they’re simply ignoring it, forcing our non-profit trade association to take them and their high-priced lawyers to court. Today’s ruling makes clear that these ‘reservation’ practices are harmful. We will continue to fight for the rights of all California dealers,” said Maas.
CNCDA requests immediate injunctive relief to halt unlawful reservations and sales, along with enforcement of franchise laws to protect California’s dealer network and the consumers they serve.
About CNCDA For over 100 years, CNCDA has protected and promoted the interests of California’s franchised new car and truck dealers. In 2025, California’s franchised new car dealers sold more than 1.8 million new cars and trucks, employed almost 138,000 people, paid $9.16 billion in state sales tax, and donated $72.09 million to charitable and civic organizations. CNCDA is the nation’s largest state association of franchised automotive dealers, with nearly 1,200 members. We provide dealer advocacy, as well as legal, compliance, and regulatory support.
California New Car Dealers Association Publishes 2025 Economic Impact Report
March 9, 2026, Sacramento, CA- Today, the California New Car Dealers Association published its Annual Economic Impact Report. The report highlights the 2025 contributions new car dealers made in charitable donations, federal and state taxes paid, and employment data, among other dealership trends related to California’s economy.
California’s franchised new car dealers are significant statewide financial contributors. In 2025, California’s new car dealers sold 1.8 million new vehicles, employed over 137,856 hard-working Californians, and paid $14.26 billion in total taxes statewide. In 2025, the average California new-car dealership employed roughly 96 people.
California’s new car dealers contributed significantly to the state’s economic health, paying a total of $9.16 billion in state sales tax in 2025, an average of $6.38 million per dealership. The average total taxes paid per California dealership in 2025 was $9.93 million.
New car dealers sold 378,216 electric vehicles (EVs), representing 20.9% of the total new light-duty vehicles sold in the Golden State last year. California’s EV market share is more than twice the national rate, at 20.9 percent of new light-duty vehicle sales compared to 8.2 percent nationally. Dealers spent an average of $215,000 each on EV charging infrastructure between 2024 and 2026 to meet California’s EV consumer demand.
Additionally, California’s new car dealers consistently act as local community stewards year after year, giving $72.09 million to charitable and civic organizations in 2025, an average of $50,200 per dealership to good causes.
The annual report is made possible by CNCDA’s active dealer members, who completed the association’s Economic Impact Survey using statewide auto sales data. Special thanks to the Central California New Car Dealers Association, the Great Los Angeles New Car Dealers Association, the Inland Empire Auto Dealers Association, the Orange County Auto Dealers Association, the New Car Dealers Association of San Diego County, and the Silicon Valley Auto Dealers Association
About CNCDA For over 100 years, CNCDA has protected and promoted the interests of California’s franchised new car and truck dealers. Your membership makes a difference! Thanks to members like you, we deliver essential legal compliance support, educational resources, advocacy, and exclusive events.
In 2025, California’s franchised new car dealers sold more than 1.8 million new cars and trucks, employed almost 138,000 people, paid $9.16 billion in state sales tax, and donated $72.09 million to charitable and civic organizations. CNCDA is the nation’s largest state association of franchised automotive dealers, with nearly 1,200 members. We provide dealer advocacy, as well as legal, compliance, and regulatory support.
CNCDA Welcome Party at NADA Show 2026
SACRAMENTO, CA – The California New Car Dealers Association would like to sincerely thank all of our dealer members, sponsors and invited guests who attended our Welcome Party at the Wynn Las Vegas as we kicked off NADA Show 2026! We were thrilled to have the opportunity to connect with everyone and celebrate the dealer community. We hope you will join us again next year.
CNCDA Issues Statement Re: CARB’s New Light-Duty ZEV Incentives Proposal
Sacramento, CA (February 2, 2026)— “CNCDA applauds the Newsom Administration’s proposal for additional consumer-focused EV incentives to address new EV affordability. We look forward to working with all stakeholders to ensure the proposed credit is directly applied at the point-of-sale and is easily understood by consumers and dealers alike.” – Brian Maas, President, California New Car Dealers Association
California New Car Dealers Association Releases Q4 2025 Auto Outlook
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
Q4 2025 CA Auto Outlook: ZEV Registrations Fall for the First Time Since 2020
Overall New Vehicle Sales Finish 2025 on a High Note
Click on the image to view the report.
SACRAMENTO, CA (January 22, 2026)—Today, the California New Car Dealers Association (CNCDA) released its Q4 2025 California Auto Outlook report, providing a full-year analysis of statewide new vehicle registration trends. All data in the report is sourced from Experian Automotive and must be cited when referencing these findings.
Key Takeaways California’s new vehicle market closed 2025 on a solid footing, posting a 3.3 percent increase in registrations, despite rising transaction prices, incentive expirations, higher interest rates, and economic uncertainty. This increase marks another year of overall market stability, underscoring continued consumer demand across vehicle segments.
At the same time, electric vehicle momentum reversed course.
After several years of growth following the pandemic, ZEV (zero-emission vehicle) registrations declined in 2025 to 20.9 percent of the market, down from a peak of 22.0 percent in 2024. This marks the first year-over-year decline in ZEV registrations since 2020.
While cumulative ZEV totals continue to grow over time, registration data show that consumer adoption softened materially in late 2025, raising questions about the pace of future growth in California’s ZEV market.
The drop became especially pronounced in the last two months of the year. ZEV registrations in November and December fell below 13 percent, a sharp pullback following the third-quarter surge driven by the impending expiration of federal tax credits. Data confirms that the Q3 spike in registrations represented a pull-forward of demand rather than sustained growth. Total fourth-quarter ZEV market share was 20.1 percent.
California’s share of total U.S. ZEV registrations in 2025 was 28.5 percent.
Hybrids Gain Ground as Californians Seek Practical Options While ZEV demand cooled, hybrid vehicles continued to gain traction, posting strong year-over-year growth in 2025. Hybrid registrations increased by more than 30 percent compared to last year and accounted for 19.4 percent of the market, just 1 point behind ZEV sales.
Notably, hybrid sales slightly outpaced ZEV sales in Q4 alone, capturing 20.4 percent of the market, reflecting sustained consumer interest in lower-emission options that do not require installation of charging infrastructure or major lifestyle changes.
Gas-powered vehicles remained the single largest segment of the market, accounting for more than half of all new vehicle registrations in 2025 (54 percent).
“California continues to lead the nation in vehicle sales and innovation because consumers trust their local dealers,” said Jessie Dosanjh, Owner of Stevens Creek Chevrolet, and CNCDA Chairman. “This trust is built over time. We help our customers navigate new technology, shifting incentives, and affordability concerns by offering electric, hybrid, and traditional vehicles that fit how Californians live and drive.”
Model Rankings Revisited California’s year-end model rankings underscore continued demand for both affordable and established, high-volume vehicles across passenger car and light truck segments.
The Toyota Camry remained the top-selling passenger car in California, widening its lead in 2025, posting 62,324 registrations and capturing 50.0 percent of the midsize and large car segment. The Honda Accord followed with 30,455 registrations (24.4 percent). In the small car segment, the Honda Civic led the market with 53,085 registrations, representing 30.4 percent of sales.
Among light trucks, the Tesla Model Y remained California’s top-selling model overall with 110,120 registrations, accounting for 8.2 percent of total light truck share. The Toyota RAV4 followed with 65,604 registrations (4.9 percent), while the Honda CR-V recorded 52,311 registrations (3.9 percent).
Pickup demand remained strong. The Toyota Tacoma led compact and midsize pickups with 45,258 registrations (51.3 percent in that segment), while the Ford F-Series topped the full-size pickup segment with 39,502 registrations, followed by the Chevrolet Silverado at33,634 registrations.
Brand Performance Highlights Several established brands posted notable gains in 2025, particularly those expanding hybrid and diversified powertrain offerings.
Toyota finished 2025 as California’s top-selling brand, with 17.8 percent market share, further widening its lead over competitors. Honda closed the year in second place, capturing 10.8 percent of the market. By contrast, Tesla registrations declined 11.4 percent in 2025 with market share dropping from 11.6 percent in 2024 to 9.9 percent in 2025 as it slipped to third place in the state. This extends a two-year downward trend for Tesla despite the temporary boost from federal incentives.
Regional Markets California’s new retail registrations increased 1.5 percent in 2025 to 1,582,031 vehicles, driven entirely by light truck growth. Note: This data does not include fleet purchases.
Northern California led the state, with registrations up 2.8 percent to 543,368 units. Light truck sales rose 4.3 percent, while passenger cars declined 1.6 percent. BEVs accounted for 24.6 percent of the Northern California market.
Southern California registrations increased 0.9 percent to 1,038,663 units. Passenger car sales fell 4.1 percent, while light trucks rose 2.9 percent. BEVs represented 21.8 percent of registrations.
Statewide Outlook After rising 3.3 percent in 2025 to 1.81 million registrations, California’s new vehicle market is expected to soften in 2026, with registrations projected to dip 1.5 percent to just under 1.8 million units amid higher transaction prices, tariff pressure, and a cooling labor market. While affordability issues persist, record-high vehicle age, pent-up replacement demand, and a potential dip in interest rates are expected to help insulate from steep declines.
California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company that analyzes statewide and regional automotive markets. When reporting these auto industry trends, please acknowledge the Data Source: Experian Automotive.
The report provides comprehensive information on California’s new vehicle market, including annual trends, a two-year perspective, vehicle powertrain dashboard, segment watch, the top five models in each segment, brand scoreboards, regional comparisons, and more. Visit www.cncda.org.
About CNCDA
For over 100 years, the California New Car Dealers Association has represented California’s franchised new car and truck dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles and provide automotive products, parts, services, and repairs.
In 2024, California’s franchised new car dealers sold more than 1.85 million new and used cars and trucks, employed more than 138,478 people, paid $8.83 billion in sales tax, and donated $70.75 million to charitable and civic organizations. CNCDA is the Nation’s largest state association of franchised automotive dealers, with nearly 1,200 members, and provides legal compliance and legislative, regulatory, and legal advocacy.
California New Car Dealer Quarterly- Issue 4, 2025
Click on the cover above to read the latest issue.
TIME AND ALLY FINANCIAL HONOR NORTHERN CALIFORNIA DEALER FOR 2026
Tom Price, Price Family Dealerships, Wins National Recognition for Community Service and Industry Excellence
SSACRAMENTO, CA, November 26, 2025 – The California New Car Dealers Association is pleased to announce California’s nomination of Tom Price, chairman and founder of Price Family Dealerships, for the 2026 TIME Dealer of the Year award, recently shared by TIME, in partnership with Ally.
Price is one of a select group of 47 dealer nominees from across the country who will be honored at the 109th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on February 5, 2026.
The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Price was chosen to represent the California New Car Dealers Association in the national competition — one of only 47 auto dealers nominated from more than 20,000 nationwide.
A lifelong car enthusiast, Price began selling cars while in college and later served in the Lincoln-Mercury Division at Ford Motor Company before moving into retail. “I loved cars as a child, and when I started calling on dealerships for Ford, I fell in love with the retail and entrepreneurial side of the business,” Price said. “A dealer told me, ‘If you like this business so much, why not go retail?’ So I did.”
In 1976, Price and his wife took a leap of faith to acquire their first store. “My wife of 53 years and I sold our house and cars, used our savings, and even cashed credit cards to buy an Oldsmobile dealership,” he said. “We survived gas lines and 20% interest rates — and we kept growing.”
He went on to build First America Automotive to 31 dealerships, served as vice chairman of Sonic Automotive, and then re-founded Price Family Dealerships, which today includes 15 dealerships representing 20 brands and 1,300+ employees across Northern California. “Not every plan goes as expected — our IPO fell through — but rebuilding as a family company with my sons has been better than I could have hoped,” Price added.
Price has invested more than $96 million since 2010 in new and remodeled facilities while modernizing operations. “Actions speak louder than words,” he said. “That’s why we adopted our Simple Price, Simple Process approach — one price and one salesperson. What used to take 3-4 hours now takes 60-90 minutes, and customers leave smiling.”
The group also implemented video multi-point inspections across all service lanes. “Transparency builds trust — our videos turn ‘trust us’ into ‘see for yourself,’” Price said. A six-month internal contest identified best-practice videos and rewarded technicians. “When customers can see their brakes and tire tread on screen, they feel respected and informed.”
Developing people is central to Price’s philosophy. “We’re fueled by good people, doing the right thing, together,” he said. “From UTI partnerships to NADA Academy, we invest in technicians and future leaders — and we share success with buy-in opportunities so top performers can build wealth with us.”
Tom also championed the creation of the Price Family Women’s Circle. This employee-led network empowers women across 30 dealerships through mentorship, leadership development, and community service, strengthening company culture and advancing female representation in the automotive industry.
Price Family Dealerships also built a comprehensive wellness ecosystem, including an emergency relief fund, a 24/7 employee assistance program, and the company-wide DriveFit challenge. “When people face a crisis, they shouldn’t face it alone — that’s why we created our emergency relief fund,” Price noted. Community impact is a long-standing commitment. “For 20 years, we’ve donated a new Toyota annually to Dedication to Special Education, helping raise more than $1.05 million for students with special needs,” Price said. In addition, Tom donates to over 250 local charities, totaling more than $1 million in annual charitable assistance to the community.
He also serves locally as co-chairman for Belvedere Residents for Intelligent Growth. “A dealership’s true balance sheet is measured in how it shows up for families in its community.”
Dealers are nominated by the executives of state and metropolitan dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities, and the winner will receive $10,000 to donate to charity, courtesy of Ally.
In its 14th year as the exclusive sponsor, Ally is recognizing dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)(3) charity of choice. Nominees are recognized online at ally.com/go/tdoy, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees.
“At TIME, our commitment to recognizing the exceptional contributions of automotive dealers remains as strong as ever,” said Jessica Sibley, CEO of TIME. “The TIME Dealer of the Year award continues to celebrate those who not only excel in their profession but also make a meaningful impact in their communities. We are thrilled to continue this legacy in partnership with Ally.”
Doug Timmerman, Ally president of Dealer Financial Services, said, “Auto dealers are the backbones of their communities, providing civic support and significant business leadership. Ally is proud to recognize the unwavering commitment these TIME Dealer of the Year nominees are living every day through their volunteerism, sponsorships, and support of charitable causes. They are the epitome of community heroes, making important and positive impacts in the lives of the people they serve.”
Tom Price was nominated for the TIME Dealer of the Year award by the California New Car Dealers Association. He and his wife, Gwen, have two sons, Gregory and Nick.
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About TIME
TIME is the 100-year-old global media brand that reaches a combined audience of over 120 million around the world through its iconic magazine and digital platforms. With unparalleled access to the world’s most influential people, the trust of consumers and partners globally, and an unrivaled power to convene, TIME’s mission is to tell the essential stories of the people and ideas that shape and improve the world. Today, TIME also includes the Emmy Award®-winning film and television division TIME Studios; a significantly expanded live events business built on the powerful TIME100 and Person of the Year franchises and custom experiences; TIME for Kids, which provides trusted news with a focus on news literacy for kids and valuable resources for teachers and families; the award-winning branded content studio Red Border Studios; an industry-leading web3 division; the website-building platform TIME Sites; the sustainability and climate action platform TIME CO2; the new e-commerce and content platform TIME Stamped, and more.
About Ally Financial
Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and an industry-leading auto financing business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The company serves more than 11 million customers through a full range of online banking services (including deposits, mortgage, point-of-sale personal lending, and credit card products) and securities brokerage and investment advisory services. The company also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies, as well as auto financing and insurance offerings. For more information, please visit www.ally.com and follow @allyfinancial. For more information and disclosures about Ally, visit https://www.ally.com/#disclosures. For further images and news on Ally, please visit https://media.ally.com.
About the NADA Show
The annual NADA Show brings together more than 20,000 franchised dealers and their employees, industry leaders, manufacturers and exhibitors to learn about the latest auto industry tools, trends, products and technologies.
About CNCDA
For over 100 years, CNCDA has protected and promoted the interests of California’s franchised new car and truck dealers. Your membership makes a difference! Thanks to members like you, we deliver essential legal compliance support, educational resources, advocacy, and exclusive events.
In 2024, California’s franchised new car dealers sold more than 1.85 million new cars and trucks, employed more than 138,478 people, paid $8.83 billion in sales tax, and donated $70.75 million to charitable and civic organizations. CNCDA is the nation’s largest state association of franchised automotive dealers, with nearly 1,200 members, and provides compliance resources, as well as legislative, regulatory, and legal advocacy.
A Smoother Ride Ahead: PAGA Reform Brings Balance Back to California Workplaces
California’s franchised new car dealers are seeing tangible benefits from the 2024 PAGA reforms. Once burdened by broad, costly lawsuits, dealerships are now experiencing faster claim resolutions and fairer outcomes.
Key early benefits of the reforms include: • Narrower Standing Reduces Frivolous Lawsuits. Employers and defense lawyers report they are now routinely knocking out claims early by proving the plaintiff didn’t experience certain violations, dramatically shrinking exposure. Claims are resolved faster and for less money because legal disputes are narrower and more manageable. • More Money & Faster Resolution for Employees. PAGA reforms increased the employee share of penalties from 25% to 35%, with the state receiving 65%. The early resolution process through the state’s Labor and Workforce Development Agency (LWDA) also limits the need for extended and costly litigation. • Reduced Penalties for Employers. Reduced penalties now balance fairness and enforcement. Defense firms report significantly reduced penalties on employers because of the PAGA reforms. • One-Year Limitations Period. PAGA reforms clarified standing law that a plaintiff must have experienced a violation within the past year to bring a claim. • Ability to Limit the Scope of Claims and Evidence to Ensure Manageability. Courts now have explicit authority to limit the evidence to be presented at trial or otherwise limit the scope of a PAGA claim to ensure cases remain manageable for trial. • Employers Doubling Down on Compliance Efforts. Employers are doubling down on their compliance efforts, conducting audits more frequently, training managers and updating policies proactively.
These early successes show that California’s PAGA reforms are working as intended, helping employees, employers and our economy move forward together.
California New Car Dealers Association Releases Q3 2025 Auto Outlook
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
Q3 2025 CA Auto Outlook: ZEVs Surge to One in Four Sales as Federal Tax Credit Ends
Tesla Hits Two-Year Slump; Toyota Makes Gains
Click on the image to view the report.
SACRAMENTO, CA, October 22, 2025— The California New Car Dealers Association (CNCDA) today released its Q3 2025 California Auto Outlook report, providing an analysis of statewide new vehicle registration trends. All data in the report is sourced from Experian Automotive; please cite when referencing these findings.
Key Takeaways California’s new light vehicle market continued its steady climb through the third quarter, with registrations rising 5.4 percent YTD and 3.6 percent in Q3 compared to the same period in 2024. The state is on track to see a modest annual increase by year-end.
The quarter’s most striking shift came in zero-emission vehicle (ZEV) sales, which spiked to 24.7 percent of the market. The increase was likely fueled by consumers rushing to purchase electric vehicles before September’s federal tax credit expiration. Despite this short-term lift, ZEV market share stands at 21.2 percent YTD, short of 2024’s posted 22 percent, signaling continued challenges for sustained EV adoption.
Tesla Slides as Toyota Shines Tesla has fallen for two straight years in the Golden State as registrations declined 15.1 percent YTD, dropping 9.4 percent in Q3. Toyota reigned again this quarter as California’s top-selling brand, capturing 17.4 percent of the state’s market share compared to Tesla’s 9.8 percent. Toyota registrations continue to climb, posting the most significant market share gain among all brands with a 1 percent increase YTD, and a sizable 2.4 percent jump in Q3.
The Toyota Camry also beat out Tesla’s Model 3 as the top-selling passenger car YTD, capturing 12.8 percent of the market.
Alternative Powertrain Registrations on the Rise While the ZEV market was unusually strong this quarter, hybrid registrations accounted for 18.9 percent of new registrations in Q3, posting 19.1 percent YTD. This surpasses 2024’s 14.8 percent hybrid total, suggesting that Californians want cleaner transportation options. However, they also prefer a balanced, gradual transition to the electrification of their personal transportation.
“Dealers are seeing real enthusiasm from customers for the latest hybrid and electric technologies, especially as the mainstay brands expand their lineups,” said Robb Hernandez, CNCDA Chairman and president of Camino Real Chevrolet. “Californians want choices that fit their lives and budgets. Our dealers are here to provide hybrids, EVs, or gas-powered options that meet them where they are.”
Combined sales of hybrids, plug-in hybrids, and zero-emission vehicles have reached 44.1 percent YTD, showing progress toward cleaner transportation in the state, but not at the all-electric pace policymakers envisioned. Despite ZEVs reaching their highest quarterly share (24.7 percent) since early 2023, the spike is expected to fade now that federal tax credits have expired.
The California Air Resources Board’s Advanced Clean Cars II (ACC2) mandate continues to face legal uncertainty after being struck down earlier this year under the Congressional Review Act. The ACC2 mandate excluded all hybrids and many PHEV models. While litigation is ongoing, policymakers’ goal of 100 percent ZEV sales by 2035 remains far from current consumer trends, and it is highly unlikely that ZEV sales would have met the initial 35 percent threshold for model year 2026.
Brand and Model Rankings Toyota leads the California market, followed by Honda (10.9 percent), Tesla (9.8 percent), Ford (7.7 percent), and Chevrolet (6.5 percent).
Top passenger car models include the Toyota Camry (45,617 registrations), Tesla Model 3 (44,173), and Honda Civic (41,130). Leading light trucks include the Tesla Model Y (79,448), Toyota RAV4 (49,584), and Honda CR-V (41,217).
Brands showing notable growth YTD include Buick, Jeep, Acura, Genesis, Cadillac, and Land Rover, each posting increases above 20 percent compared to Q3 2024.
Regional Trends Northern California outpaced the rest of the state, with registrations up 5 percent and a ZEV share of 24.9 percent. Southern California saw a 2.9 percent gain, with ZEVs accounting for 22.2 percent. The San Francisco Bay Area, Los Angeles/Orange Counties, and San Diego County all posted moderate growth.
Franchised dealerships continue to lead in consumer engagement and accessibility, accounting for nearly half (49.7 percent) of all ZEV sales in the state, a gain from 40.8 percent one year ago.
Statewide Outlook With the federal EV credit now expired, economists expect ZEV sales to normalize in Q4 as market forces and consumer preferences rebalance. The state’s total new vehicle registrations are projected to reach 1.74 million units in 2025, a slight increase from 2024.
California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company that analyzes statewide and regional automotive markets. When reporting these auto industry trends, please acknowledge the Data Source: Experian Automotive.
The report provides comprehensive information on California’s new vehicle market, including annual trends, a two-year perspective, vehicle powertrain dashboard, segment watch, the top five models in each segment, brand scoreboards, regional comparisons, and more. Visit www.cncda.org.
About CNCDA
For over 100 years, the California New Car Dealers Association has represented California’s franchised new car and truck dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles and provide automotive products, parts, services, and repairs.
In 2024, California’s franchised new car dealers sold more than 1.85 million new and used cars and trucks, employed more than 138,478 people, paid $8.83 billion in sales tax, and donated $70.75 million to charitable and civic organizations. CNCDA is the Nation’s largest state association of franchised automotive dealers, with nearly 1,200 members, and provides legal compliance and legislative, regulatory, and legal advocacy.
