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.
Sharing Good News: The Pink Acura Experience
Fresno Acura — 12 years have passed since Fresno Acura created the #PinkAcura experience to connect with the community and to help raise funds for local breast cancer research and awareness. You may have spotted our Pink Acura driving around town joining with local events, fundraisers, businesses and schools to collect signatures on the car. Those signatures have allowed our community to express their thoughts for all to see and admire. Whether it is a solo signature, a message to a lost loved one or an inspiration to keep fighting the fight, the pink car has been motivation for all. At the end of our tour, Fresno Acura donated to Community Medical Center’s Radin Breast Care Center. This donation directly assists in the purchase of state of the art technology to help every patient who uses these facilities.
As a female, family owned business, Fresno Acura is proud to be involved in spreading awareness and reminding our community to take their health seriously and to go get that check up they have been putting off! We all know someone whose life has been affected by breast cancer, please join us in signing your name on the Pink Acura this year to help us promote positivity and to inspire hope.
If you would like to see the #PinkAcura at your event or business this October, please reach out as we would love to participate.
Sony Honda and its partners are operating in direct violation of Assembly Bill 473 (AB 473), a 2023 law prohibiting automakers from using affiliated brands to compete with their own franchised dealers. Despite this law, Sony Honda and its partners are taking $200 deposits directly from California consumers through its website for upcoming Afeela vehicles, thus bypassing the state’s Honda and Acura dealerships.
“This is a direct attack on the 161 franchised Honda and Acura dealers in California that have been loyal partners in building the brand’s reputation and success for decades,” said Brian Maas, CNCDA President. “At the time of AB 473’s review by the California legislature, Sony Honda sought to block the (now) law that would make their direct sales of Afeela vehicles illegal. They are now knowingly violating the law, hoping they won’t be caught. It’s our job to protect the dealers who are directly harmed by their actions.”
“By cutting dealers out, they’re stripping vital consumer protections like local service support, transparent pricing, and warranty assistance, all while undermining the millions these dealers have invested in their facilities, employees, and communities. We will not allow a manufacturer to turn its back on the very network that made it profitable in the first place,” said Maas.
CNCDA is seeking immediate injunctive relief to halt these unlawful sales, along with enforcement of state law to protect California’s dealer network and the consumers they serve.
California’s franchised dealers are key economic drivers, selling more than 1.85 million new cars and trucks, employing over 138,000 Californians, and generating more than $8.8 billion in sales tax revenue. In 2024, dealers donated nearly $71 million to charitable and civic organizations statewide.
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. 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 Dealers Association Releases Q2 2025 Auto Outlook
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
Q2 2025 CA Auto Outlook: Tesla Sales Nosedive, Dragging Down ZEV Market Hybrids Surge, ICE Holds Steady, and Tariff Uncertainty Looms
Click on the image to view the report.
SACRAMENTO, CA, July 22, 2025— Today, the California New Car Dealers Association (CNCDA) released its Q2 2025 California Auto Outlook Report, analyzing new vehicle registration trends for the first half of the year. All data in the report is sourced from Experian Automotive and must be cited when referencing these findings.
Key Takeaways Seven appears unlucky for Tesla, as this is the most recent number of quarterly registration declines reported in the state. The electric-only automaker experienced an 18.3 percent drop in registrations compared to the first half of 2024. The direct-to-consumer automaker lacks a robust dealership network for sales support, which may have contributed to a 2.7 point decline in its market share year-to-date, with Q2 alone seeing a 2.9 point decrease. This decline pulled down the overall Zero Emission Vehicle (ZEV) share in the state, which fell to 18.2 percent this quarter and 19.5 percent year-to-date, down from 22.0 percent in 2024.
Alternatively, hybrid vehicles are gaining momentum and paving the way for a cleaner, greener California. Registrations for hybrids have climbed 54 percent so far this year, now accounting for 19.2 percent of the market, totaling 181,192 registrations. Gasoline and diesel vehicles continue to lead, with internal combustion engine (ICE) models making up 57.5 percent of the market.
“Dealers are focused on what Californians are buying, not just what policymakers want them to buy,” said Robb Hernandez, CNCDA Chairman and president of Camino Real Chevrolet. “It’s clear many consumers still face barriers to going fully electric, whether that’s due to affordability, lack of infrastructure, or range anxiety. Dealers are here to help customers find what works for their lives, whether that’s a ZEV, a hybrid, or a traditional gas-powered vehicle.”
ZEV Progress Slows as Policy Clouds Gather California’s Advanced Clean Cars II (ACC2) regulation, which required 100 percent ZEV sales by 2035, has encountered legal and political headwinds. The rule, set to take effect starting with model year 2026, required each manufacturer to sell 35 percent ZEVs, which would have been a massive long shot considering this quarter’s backslide to just 18.2 percent of ZEV sales (the lowest since Q3 2022).
While the mandate was invalidated earlier this year under the federal Congressional Review Act, litigation from the Newsom administration is ongoing, and the future of ACC2 (or a newly revised version) remains uncertain.
With hybrids gaining popularity and Tesla’s decline dragging down overall ZEV numbers, California policymakers’ ZEV-only strategy may need realignment. Notably, combined alternative powertrain vehicles (hybrid, plug-in hybrid, BEV, and fuel cell vehicles) account for 42.5 percent of new vehicle registrations statewide. Meanwhile, the state’s share of national ZEV registrations remains strong at 28.6 percent.
Brand Market Share and Summary Toyota continues to lead the California market with a 17.3 percent share, followed by Honda (11 percent), Tesla (8.8 percent), Ford (7.7 percent), and Chevrolet (6.6 percent). Brands showing strong year-to-date growth include Buick, Jeep, Acura, Genesis, Cadillac, Land Rover, and Chevrolet, each posting increases of over 20 percent in registrations compared to the same period last year.
Model Segment Rankings Top-selling passenger cars so far this year include the Tesla Model 3 with 31,394 registrations (12.6 percent share), followed closely by the Toyota Camry at 30,490 (12.2 percent), and the Honda Civic at 28,531 (11.5 percent).
Leading light truck models include the Tesla Model Y (6.3 percent share), Toyota RAV4 (4.9 percent), and Honda CR-V (4.3 percent).
Regional Variances Regional data shows steady growth across the state. The San Francisco Bay Area rose 3.4 percent, Los Angeles and Orange Counties climbed 2.3 percent, and San Diego County increased by 2.5 percent. Northern California led the state in BEV share at 23.0 percent, while Southern California held at 20.7 percent.
Statewide Impacts Despite a strong start to the year, rising tariffs, inflation, and consumer caution may soften California’s automotive outlook for the second half of 2025. Statewide, 944,834 new vehicles were registered during the first half of 2025, marking a 6.6 percent increase over the same period last year. New vehicle registrations were also up 5.5 percent in Q2 2025 compared to Q2 2024. The forecast for total 2025 registrations is 1.72 million, slightly below last year’s 1.75 million total.
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.
CNCDA Demands Sony Honda Immediately Cease Illegal Sales of Afeela Vehicles in California
SACRAMENTO, CA, May 19, 2025— Today, the California New Car Dealers Association (CNCDA) issued a cease-and-desist letter to American Honda Motor Co. (American Honda) and Sony Honda Mobility of America (SHMA) to immediately halt direct sales of Afeela brand vehicles to California consumers, which directly violates existing state franchise laws.
Currently, SHMA and American Honda are marketing and taking deposits from California residents for Afeela vehicles, thus bypassing Honda and Acura dealers entirely, cutting them out of a fair opportunity to sell or lease the vehicles. California Vehicle Code Section 11713.3(o) prohibits manufacturers and their affiliates from competing with their own franchisees by engaging in direct-to-consumer sales.
In the letter, CNCDA demands an immediate halt to all marketing and deposit-taking activities by SHMA and American Honda for California residents. Both manufacturers are under common ownership under Honda Motor Co., Ltd. SHMA has stated that all Afeela vehicles will be assembled in the United States at a Honda-owned Ohio factory that also manufactures vehicles for American Honda, including those sold under the Honda and Acura brands.
“California law is crystal clear. Automakers and their affiliates are not allowed to compete with their own franchised dealers through direct sales,” said Brian Maas, CNCDA President. “Sony Honda’s rollout of selling Afeela vehicles directly to consumers is an unlawful effort to circumvent the state’s protections for franchisees, and we are fully prepared to take legal action to defend our Honda and Acura dealer members.”
SHMA and American Honda demonstrated full awareness of Assembly Bill 473 (a CNCDA-sponsored law unanimously enacted by the California Legislature and signed by Governor Gavin Newsom) with their formal opposition during the bill’s legislative process. AB 473, which took effect on January 1, 2024, explicitly prohibits manufacturers from selling vehicles directly through affiliated entities. Honda and SHMA are in direct violation of the law as they sell Afeela vehicles without including their franchised Honda and Acura dealer partners.
In April of this year, CNCDA filed a lawsuit against Volkswagen and Scout Motors for also violating California’s franchise laws. This lawsuit followed a similar Cease and Desist letter issued to Volkswagen in December 2024. The lawsuit similarly alleges unfair competition and false advertising via illegal direct sales and calls for civil penalties that could exceed $35 million.
CNCDA remains steadfast in ensuring California law is followed and franchised dealers are protected. The association is prepared to take legal action should this letter not result in the immediate cessation of direct sales of Afeela vehicles by SHMA and American Honda.
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.
CNCDA Files Lawsuit Against Volkswagen and Scout Motors for Violation of California Franchise Laws
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
Scout Motors Bypassing Dealer Partners
SACRAMENTO, CA, April 22, 2025— Today, the California New Car Dealers Association (CNCDA) filed a lawsuit in San Diego County Superior Court against Volkswagen and its affiliate, Scout Motors, for deliberately violating California’s franchise laws. The lawsuit asserts that Volkswagen is illegally competing with its dealer partners through its affiliate, Scout Motors.
Volkswagen and Scout Motors are operating in direct violation of California Assembly Bill 473, a 2023 law that prohibits automakers from using affiliated brands to compete with their own franchised dealers. Despite admitting to legislative leaders that AB 473 would cut off its ability to sell directly to consumers, Volkswagen, via Scout Motors, has taken deposits and is marketing Scout-branded vehicles to California consumers.
“While CNCDA represents 45 Volkswagen dealerships in California, this lawsuit sends a message to every automaker,” said Brian Maas, CNCDA President. “VW dealers would welcome the opportunity to sell Scout trucks and SUVs, but their manufacturer business partner is denying them that opportunity, in direct violation of California law. Volkswagen can’t pick and choose which vehicles to sell on its own or through its franchised dealer network, reserving the most profitable or desirable vehicles for itself. Illegal competition will harm not only dealers but also the communities and car buyers that they serve. That is why the Legislature unanimously approved this important law.”
The lawsuit alleges unfair competition and false advertising, and CNCDA is seeking to immediately stop Scout Motors’ illegal direct sales, as well as civil penalties that could exceed $35 million.
California’s franchised dealers are key economic drivers, employing over 135,000 Californians and generating more than $8 billion in tax revenue for state and local governments. They also donated almost $71 million to charitable organizations in 2024 alone. CNCDA is committed to protecting the laws that ensure fair competition and a level playing field for all.
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 Dealers Association Releases Q1 2025 Auto Outlook Report
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
Q1 2025 CA Auto Outlook Report: Tesla Tumbles with Sixth Straight Quarterly Decline; Slows CA’s ZEV Market Overall Market (and Hybrids) Make Strides
Statewide Impacts Tesla’s troubles continue to worsen as Californians are giving the cold shoulder to the direct-to-consumer automaker (and controversial owner, Elon Musk). Registrations show a massive decline of 15.1 percent through March vs. this time last year. A year and a half of continuous quarterly declines proves this downward trajectory for Tesla is a lasting trend. The company’s market share also dropped by 11.6 percent at the end of Q1, now holding less than half of the California Zero Emission Vehicle (ZEV) market for the year.
Tesla’s shrinking sales are dragging down the state’s zero-emission vehicle sales momentum. California posted a second quarterly decline in ZEV registrations, holding just 20.8 percent of the market share (down from 22 percent in 2024).
The state’s ZEV market share would need to increase by 14.2 share points to meet the California Air Resources Board’s Advanced Clean Cars II mandated level of 35 percent for 2026 model year vehicles (representing a 68 percent increase in ZEV registrations). The state’s franchised new car and truck dealers begin selling 2026 model year vehicles in a matter of weeks.
“Dealers sell what customers want to buy. No mandate can force consumers to choose otherwise. Although the manufacturers we represent are increasing EV sales in California, with the substantial decline in Tesla sales, EV market penetration is largely flat. This puts us well short of EV sales mandates that take effect this year,” said Robb Hernandez, CNCDA’s Chairman and President of Camino Real Chevrolet.
Key Highlights Still, the California sun is shining on the automotive market. Overall, new vehicle registrations among all brands showed a massive 8.3 percent growth from this time last year. A promising 463,114 vehicles were registered in the Golden State last quarter. Another bright light: California’s hybrid market is soaring. Hybrids now hold 17.9 percent of the market share, coming closer than ever to reaching the state’s ZEV numbers.
However, the forecast is cloudy with uncertain predictions for the remainder of 2025; registrations are now expected to dip 2.3 percent to 1.71 million for the full year. Looming trade policy changes have thrown a wrench into the outlook. A rush of buying in March and April, likely ahead of anticipated tariffs, may be short-lived if vehicle prices spike.
Brand Market Share and Summary Among all powertrains and brands, Toyota tops California, with 76,625 registrations in Q1, holding 16.5 percent of California’s market share. Honda jumped up a spot this quarter to take 10.8 percent of the market share. And Tesla came in third, with 9.1 share of California’s market, losing 2.6 percent from this time last year.
Toyota also leads California’s light truck market with Ford and Honda in second and third.
Several brands racing ahead with registrations improving by 30 percent (or more) YTD include: Buick, Mitsubishi, Genesis, Chrysler, Cadillac, Land Rover, Nissan, and Hyundai.
Model Segment Rankings California’s best sellers in the primary segments so far in 2025 are the Toyota Camry, Tesla Model 3, Honda Civic, Toyota Tacoma, Ford F-Series, Toyota RAV4, Honda Prologue (which also took third place in the alternative powertrain market), and the Lexus RX.
The top three passenger cars sold this quarter were the Tesla Model 3 (11.6 percent of share), the Toyota Camry (holding 11.5 percent) and the Honda Civic with 10.7 percent of California’s market share. The top three light trucks sold were the Tesla Model Y (6.8 percent share), the Toyota RAV4 (4.9 percent share), and the Honda CR-V (4 percent share).
Regional Variances Northern California passenger car sales were up .8 percent, and light trucks were way up with an 8.4 percent increase in registrations. BEVs account for 24.6 percent of Northern California’s market share. In Southern California, passenger car registrations were down 3.1 percent, while light trucks grew 7.1 percent, with BEVs taking a 23 percent share of the market.
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.
2025 Dealer Day Recap and Photos
SACRAMENTO, CA – The California New Car Dealers Association would like to express our heartfelt appreciation to all who attended Dealer Day 2025 in Sacramento. We appreciate the 200+ dealers and 150+ sponsors, vendors, and partners who attended and gave their time to advocate for the future of California’s Automotive Industry. We hope you will join us again for Dealer Day 2026.
Additionally, we want to sincerely thank our sponsor partners who helped make this event possible for our membership. Thank you again for your dedication to our industry and cause. We hope to see you all next year!
If you would like a high-res version of any of these images, please contact Autumn Heacox, Director of Communications & Marketing (aheacox@cncda.org).
California New Car Dealers Association Publishes 2024 Economic Impact Report
CNCDA published our 2024 Economic Impact Report this week. The report highlights the contributions new car dealers have made in charitable donations, taxes paid, and employment data, among other dealership trends related to California’s economy.
California’s franchised new car dealers continue to act as significant statewide contributors. In 2024, California’s new car dealers sold 1.76 million new vehicles, employed over 138,478 hard-working Californians, and paid $13.8 billion in statewide taxes. In 2024, the average California new car dealership employed roughly 96 people per dealership.
California’s new car dealers contributed significantly to the state’s economic health, paying a total of $8.83 billion in state sales tax in 2024, an average of $6.15 million of sales tax per dealership. The average total taxes paid per California dealership in 2024 was $9.53 million, totaling $13.86 billion statewide.
New Car Dealers sold 387,368 electric vehicles (EVs) in 2024 which represents 22% of the total new light-duty vehicles sold in the Golden State last year. The EV market share in California is three times higher than the EV market share in the rest of the United States. Dealers anticipate spending an average of $336,000 each on EV charging infrastructure in 2024 to help meet the needs of CA’s EV consumer demand.
Additionally, California’s new car dealers consistently act as local community stewards year after year, giving $70.75 million to charitable and civic organizations in 2024, an average of $49,300 per dealership to good causes.
The report is made possible by CNCDA’s dealer members, who completed the association’s annual Economic Impact Survey and statewide auto sales data.
About CNCDA For 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 2022, California’s franchised new car dealers sold more than 1.6 million new cars and trucks, employed more than 136,000 people, paid $8.46 billion in sales tax, and donated $62.84 million to charitable and civic organizations. As the nation’s largest state association of franchised automotive dealers—with over 1,200 members—CNCDA provides legal compliance and legislative, regulatory, and legal advocacy.
New ‘CALIBRATE’ Coalition Calls for a Smarter Approach to California’s Zero-Emission Vehicle Mandate, Launches Media Campaign
SACRAMENTO— Today, a coalition of businesses, trade groups, and consumer advocates launched CALIBRATE, a campaign advocating for a more reasonable and balanced transition to zero-emission vehicles—one that works for consumers, automakers, and California’s economy and environment.
Under California’s current Advanced Clean Cars II (ACC 2) mandate, automakers must ensure 35% of all new car sales are zero-emission starting this year, ramping up annually until 2035, when new gas-powered car sales will be fully banned. But the latest data shows demand for zero-emission vehicles has stalled—sales grew just 1% in 2024, compared to 46% growth in previous years.
“We fully support California’s leadership in clean transportation,” said Brian Maas, president of the California New Car Dealers Association. “The state has made incredible progress, but forcing consumers to buy zero-emission vehicles before they’re ready isn’t the answer. A more balanced approach would build on California’s success while aligning with real demand, available infrastructure, and economic realities—without leaving Californians behind.”
“The data is clear,” said Maas, “Consumer demand isn’t keeping pace with the mandate, and only EV-exclusive automakers will hit the state’s 35% threshold in the upcoming model year. Without a pause to enforcement of ACC 2, the state – and millions of Californians – will start facing serious economic consequences in a matter of months.”
The Consequences of a Rushed Mandate
Failing to meet ACC 2 comes with steep penalties for manufacturers—$20,000 per noncompliant vehicle sold. Instead of paying fines, automakers will simply cut shipments of cars to California—or stop sending them altogether. What will the impact be?
Billions lost for public services – New car sales generate $13 billion annually in state and local tax revenue, funding fire departments and law enforcement, schools, public safety and first responders, roads, parks and other essential services.
Risking climate progress – If options shrink and prices spike, drivers who aren’t ready for an EV or whose lifestyles don’t support one will hold onto older, higher-emission vehicles longer—undermining the very goals the mandate sets out to achieve.
A major infrastructure gap – California needs 1.2 million chargers by 2035 but has just 150,000 today. Renters and those in multi-unit housing, who will have to rely on public charging, will be hit hardest.
Fewer new cars, higher prices – Automakers won’t absorb massive fines—they’ll just reduce shipments. Even traditional hybrids, despite their lower emissions and consumer popularity, don’t count toward the mandate because they aren’t classified as zero-emission vehicles. That means automakers can’t use hybrid sales to meet their targets, further limiting consumer choices. With fewer options, prices will rise across the board—on EVs, hybrids, and gas-powered cars alike. And with EV subsidies uncertain under the current administration and Congress, affordability concerns will only grow, making it even harder for consumers to make the switch.
The CALIBRATE coalition is launching a sustained media campaign to educate Californians on the real-world impact of ACC 2 and to urge regulators and policymakers to calibrate the mandate to reflect market realities.
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 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.
