SACRAMENTO, CA, March 29, 2023 – The California New Car Dealers Association published its 2022 Economic Impact Report today at their annual day of advocacy, 2023 Dealer Day. The report is pulled from data collected from surveying the state’s franchised new car dealers and statewide auto sales data from the previous year. The report highlights new car dealers’ contributions in charitable donations, taxes paid, and employment data, among other data trends as they relate to California’s economy.
California’s franchised new car dealers continue to act as civic and business leaders. Findings include that in 2022, new car dealers employed over 136,000 hard-working Californians, with 97% providing access to health insurance for their employees. An average California new car dealership pays $9.14 million in payroll and employs just over 94 people. Findings also show that dealerships are experiencing a technician shortage, with each of the roughly 1,400 California dealerships needing four additional technicians per rooftop.
California’s new car dealers contributed significantly to the state’s economic health, paying $8.46 billion in state sales tax in 2022, an average of $5.84 million per dealership. The average total taxes paid per California dealership in 2022 is $8.96 million, totaling $12.97 billion statewide.
Concerning electric vehicles and infrastructure, new car dealers anticipate spending an average of $235,000 each on EV charging infrastructure in 2023 to help meet the needs of the ever-increasing EV market share, which topped at 17.1% (285,199 vehicles sold) in 2022 but is anticipated to increase significantly in 2023.
Additionally, California’s new car dealers consistently act as local community stewards year after year, giving $62.84 million to charitable and civic organizations in 2022, a 29% increase since 2019.
For 99 years, California New Car Dealers Association has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service, and repair. Our members sold more than 3 million new cars and trucks in 2022 (including 285,199 electric vehicles), and employed more than 136,000 Californians, significantly contributing to our state’s economy. As the nation’s largest state association of franchised new car and truck dealers—with more than 1,200 members—CNCDA provides legal compliance and legislative, regulatory, and legal advocacy.