NAPA, CA – CNCDA NextGen would like to thank all of our NextGen dealer members and sponsors who attended our Annual Conference at the Silverado Resort in Napa, California. This year, we were thrilled to be able to host our conference alongisde the CNCDA Member Appreciation Dinner! We look forward to continuing to build connections with California NextGen dealers at future NextGen events.
NAPA, CA – The California New Car Dealers Association would like to sincerely thank all of our dealer members, sponsors and invited guests who attended our Member Appreciation Dinner at the Silverado Resort in Napa, California. It was a great evening to connect fellow dealers with CNCDA leadership, including our Board of Directors. We look forward to celebrating our members again at our next Member Appreciation Dinner.
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
SACRAMENTO, CA (May 1, 2026) — This week, 14 California Volkswagen dealers filed protests at California’s New Motor Vehicle Board, adding further legal challenges to Volkswagen and its Scout Motors subsidiary over their effort to sell Scout vehicles directly to consumers in direct violation of existing state franchise laws.
The protests target Volkswagen and Scout’s scheme to compete against its own dealers. Volkswagen has argued that Scout is an “independent” company, despite the fact that Scout is owned by Volkswagen and its vehicles will be built in Volkswagen-owned factories. The protests allege that Volkswagen is circumventing California law by positioning Scout as a distinct brand and competing with its own franchisees.
The dealers are exercising a protest right established under Assembly Bill 473, a 2023 law sponsored by CNCDA that, among other provisions, explicitly prohibits manufacturers from competing with their franchised dealer partners. AB 473 was enacted to close the loophole Volkswagen is now attempting to exploit.
“As a member of the Volkswagen Dealer Council, I have spent years working with VW in good faith to grow this brand in California. Filing a protest was not a decision any of us made lightly. But VW has left us no choice. They are competing against the very dealers who built their business here,” said Miles Brandon, President of Capistrano Volkswagen and member of the Volkswagen Dealer Council.
Rick Niello, President of The Niello Company and Board Member of the California New Car Dealers Association (CNCDA), said, “For over 105 years, The Niello Company has served the greater Sacramento region, with 70 of those years acting as a steward of the Volkswagen brand. We invest in our people, our facilities, and our customers to ensure every experience reflects the quality Volkswagen represents. Our customers deserve access to the full range of vehicles Volkswagen offers, and Scout vehicles belong in our showroom. We expect the same integrity from our manufacturer that we deliver to our customers.”
Brandon and Niello are among the 14 dealers who filed the protests, which build on CNCDA’s ongoing federal lawsuit against Volkswagen and Scout Motors. On March 30, 2026, a federal court denied motions to dismiss, allowing the case to move forward to discovery. The protests represent a second front in dealers’ efforts to enforce their rights, and signal to manufacturers, dealers, and consumers that California franchisees are prepared to use every legal tool necessary to uphold the law.
“California dealers want what VW promised them when the company awarded them franchises: the opportunity to sell vehicles made by their business partner without having to worry about their manufacturer denying access to certain vehicles and competing directly with them. We applaud these 14 dealers for asserting their legal rights to stop VW and Scout’s illegal behavior,” said Brian Maas, CNCDA President.
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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 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.
Contact: Autumn Heacox, Director of Communications & Marketing: aheacox@cncda.org, (916) 441-2599 x105
SACRAMENTO, CA (April 21, 2026)— Today, the California New Car Dealers Association (CNCDA) released its Q1 2026 California Auto Outlook report, providing a first-quarter 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 opened 2026 with registrations declining 8.9 percent compared to the first quarter of 2025. The U.S. market fell 4.6 percent over the same period.
After rising 3.1 percent in 2025 to 1.80 million registrations, California’s total new vehicle market is projected to decline to 1.74 million units in 2026. Elevated transaction prices, tariff uncertainty, high interest rates, and near-record-low consumer confidence are the primary headwinds. Pent-up replacement demand and an aging vehicle fleet are expected to provide some support and limit steeper declines.
At the same time, momentum for electric vehicles continued to slow.
ZEV (zero-emission vehicle) market share fell to 13.7 percent in the first quarter of 2026, down from 21.0 percent for full-year 2025 and well below the 22.0 percent peak recorded in 2024. This is the lowest ZEV market share recorded since the fourth quarter of 2021. Total ZEV registrations declined 40.2 percent compared to the first quarter of 2025.
The pullback reflects a combination of factors, including the phase-out of federal BEV tax credits, sustained affordability pressures, and broader market softening.
California’s share of total U.S. ZEV registrations was 29.6 percent in the first quarter of 2026.
Hybrids Shine as Californians Seek Practical Options
While ZEV demand dipped, hybrid vehicles continued to gain serious momentum. Hybrid registrations exceeded 87,000 units in the first quarter of 2026, accounting for 20.9 percent of the market. That figure virtually matches ZEV market share at its 2025 annual peak. Notably, every hybrid vehicle registered in California during the first quarter was sold through a franchised new car dealership.
Gas-powered vehicles remained the single largest segment of the market, accounting for 61.1 percent of all new vehicle registrations in the first quarter of 2026, up from 54.0 percent in all of 2025.
“California consumers continue to rely on their local dealers to help them navigate a rapidly shifting market,” said Jessie Dosanjh, Owner of Stevens Creek Chevrolet and CNCDA Chairman. “Whether a customer is considering hybrid, traditional, or even an EV, dealers provide the guidance, inventory, and service to match the right vehicle to how Californians actually live and drive.”
Model Rankings Revisited
California’s first-quarter model rankings reflect continued strength in hybrid-equipped mainstream vehicles and steady demand across core passenger car and light truck segments.
The Toyota Camry was the top-selling passenger car in California, posting 14,905 registrations and capturing 52.8 percent of the midsize and large car segment. The Honda Accord followed with 7,015 registrations (24.9 percent). In the small car segment, the Honda Civic led with 12,806 registrations, representing 30.8 percent of sales.
Among light trucks, the Tesla Model Y remained California’s top-selling model overall with 22,907 registrations, accounting for 53.3 percent of the luxury compact SUV segment. The Honda CR-V followed with 12,654 registrations (17.8 percent of the compact SUV segment), while the Toyota RAV4 recorded 12,003 registrations (16.8 percent).
Pickup demand remained solid. The Toyota Tacoma led compact and midsize pickups with 12,129 registrations (53.2 percent in that segment), while the Ford F-Series topped the full-size pickup segment with 9,337 registrations, followed by the Chevrolet Silverado at 7,966 registrations.
Brand Performance Highlights
Most major brands reported declines in registrations in the first quarter, reflecting broad market contraction. Seven of the top 30 selling brands recorded increases: Lucid, Mitsubishi, Genesis, Lexus, Volvo, Chrysler, and Toyota.
Toyota finished the first quarter as California’s top-selling brand with 19.0 percent market share, up from 16.7 percent in the first quarter of 2025. Honda followed in second place with 10.4 percent of the market. Tesla registrations declined 24.3 percent compared to the first quarter of 2025, with market share falling from 9.2 percent to 7.7 percent. Among ZEV brands, Tesla’s share of the ZEV segment rose from 44.2 percent to 56.0 percent as competing electric brands posted steeper declines.
Regional Markets
Northern California saw registrations fall 13.1 percent to 118,804 units. Passenger cars declined 17.8 percent, while light trucks fell 11.6 percent. ZEVs accounted for 17.8 percent of the Northern California market.
Southern California registrations declined 9.3 percent to 234,926 units. Passenger cars fell 13.9 percent, while light trucks declined 7.5 percent. ZEVs represented 13.7 percent of registrations.
Click Here to Read the Q1 2026 California Auto Outlook.
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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 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.
SACRAMENTO, CA – The California New Car Dealers Association would like to express our heartfelt appreciation to all who attended Dealer Day 2026 in Sacramento. We appreciate all of the dealer members, 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 2027 at the Sacramento Convention Center!
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).
FOR IMMEDIATE RELEASE | Contact: Autumn Heacox | Phone: 916-441-2599 x105 | Email: aheacox@cncda.org
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.”
A copy of the court opinion can be downloaded here.
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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.
FOR IMMEDIATE RELEASE
Contact: Autumn Heacox
Phone: 916-441-2599 x105
Email: aheacox@cncda.org
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.
CNCDA also filed a lawsuit against Scout Motors, a division of Volkswagen, in April 2025 for similar franchise-law violations. That case is pending.
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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.
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
To view the 2025 Economic Impact Report, please click here.
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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.
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.
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
