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California New Car Dealers Association Releases Year-End 2023 Auto Outlook Report

Contact: Autumn Heacox, Communications & Marketing Director: aheacox@cncda.org, (916) 441-2599 x105

CA 2023 Auto Market Recap: Highest Registrations Reported Since 2020
New Vehicle Registrations Post 11.9% Increase in 2023

Click on the image to view the report.

The California New Car Dealers Association (CNCDA) released its fourth quarter 2023 California Auto Outlook report today. The report summarizes vehicle registration and sales data for 2023, and estimates projected 2024 sales in California’s vehicle market. CNCDA’s Auto Outlook data is sourced from Experian Automotive.

Major takeaways: 2023 proved to be a banner year for new car sales in California, reaching the highest numbers since the COVID-19 pandemic, with 1.78 million sales reported (higher than the 1.76 million predicted by this publication last year). Year over year, the state’s 2023 new vehicle registrations posted an 11.9 percent increase (1,775,915) compared to 2022 figures.

The top three passenger cars sold in California in 2023 were the Tesla Model 3, the Toyota Camry, and the Honda Civic. The top three light trucks for the year were the Tesla Model Y, the Toyota RAV4, and the Honda CR-V. Toyota held its place as the top-selling brand in California again in 2023.

Predictions for 2024 include another increase in new vehicle registrations by 3.2 percent, approaching 1.83 million units sold. This is due to the state’s significant and lasting demand for new cars, a strong labor market, and a positive economic outlook statewide. Potential threats include the 2024 presidential election, geopolitical tensions, etc. However, should Federal interest rates level out, auto sales in California are poised to post a more significant increase than predicted. These predictions are based on current trends and market conditions and may be subject to adjustment.

The report highlights the fifth consecutive quarterly increase in new car sales in the state. The Q4 2023 pace of new car sales showed a slight acceleration compared to Q3 (20.3 percent), posting a respectable 6 percent increase. The 2023 final registration numbers exceeded 426,000 units, 24,000 units higher than reported in Q4 2022.

“Overall, 2023 was a solid year for our businesses. We were able to adapt and evolve to meet our customers’ needs and preferences while remaining community stalwarts,” says David Simpson, CNCDA Chairman and owner of Simpson Buick GMC Cadillac of Buena Park, Simpson Chevrolet of Garden Grove, and Simpson Chevrolet of Irvine. “We do our best to work with our respective manufacturers to inform them about statewide customer trends and order the vehicles that Californians tell us they want when they walk onto our lots daily.”

Vehicle Powertrain Dashboard

The report’s new vehicle powertrain dashboard details the state’s battery electric vehicles (BEV), non-plug-in hybrid, and plug-in hybrid (PHEV) sales and market health. The state’s BEV market share declined in Q4 2023 from the previous quarter, closing the year at 21.4 percent. Alternatively, the state’s non-plug-in hybrid vehicles jumped to their highest numbers, at 11.1 percent sold in 2023. California’s total new BEV market share sales increased by five percent compared to 2022.

ICE-powered vehicles (gas and diesel) accounted for 63.9 percent of the state’s new vehicle sales share in 2023, losing about 7.7 points from 2022 numbers. In 2023, combined sales of BEVs, PHEVs, hybrids, and fuel cell vehicles in the state accounted for 35.9 percent of the market share (compared to 11.6 percent in 2018).

California leads the way in BEV registrations, posting 33.8 percent of all sales nationwide. The U.S. market share of BEV vehicles is less substantial, posting 7.5 percent in 2023.

Hybrids and Electric Vehicles

California’s top three selling BEV and PHEV models are the Tesla Model Y, Tesla Model 3, and the Chevy Bolt. The Jeep Wrangler captured fourth place and remained the best-selling PHEV in 2023.

While Tesla remains California’s BEV market share leader, its lead is diminishing as traditional automakers roll out new electric models. Tesla showed a significant decline in sales in 2023, with a 10.5 percent loss in market share YTD. Mercedes and BMW showed the highest increase in BEV sales in the state, reporting 2.2 and 2.8 percent, respectively.

In 2023, franchised dealerships accounted for over 62 percent of all alternative powertrain types in combined sales. Last year, franchised dealership sales in the BEV-only market increased to 35.8 percent. Sales of BEVs at franchised dealerships rose 94 percent from 2022 to 2023, compared to a 29 percent increase by direct sellers. This helps further demonstrate that Californians are interested in purchasing new BEV model rollouts from the mainstay manufacturers that they know and trust.

In 2023, Northern Californians remained the significant adopters of BEVs, capturing 25.6 percent of the state’s BEV market share, while Southern CA sales reported 21.3 percent of registrations.

Model Segment Rankings

California’s 2023 best sellers in the primary segments include the Honda Civic, Toyota Camry, Tesla Model 3, Toyota Tacoma, Ford F-Series, Toyota RAV4, Subaru Outback, and the Lexus RX.

Brand Market Share and Summary

Brand registrations increased in 2023 for 26 of the top 30 selling brands in the state, with Toyota remaining California’s market share leader, holding 15.7 percent. Tesla follows at 13 percent, Honda holds 9.7 percent, Ford at 7.7 percent, and Chevrolet at 6.7 percent.

The state’s registration numbers do not mirror the rest of the U.S., which reports Toyota (12.6 percent of share), Ford (11.8 percent), and Chevy (at 11.2 percent) as the top-selling brands in 2023.  

The brands showing the most significant positive change in 2023 registration numbers in California were Rivian (142.7 percent), Buick (57.3 percent), Infinity (34.7 percent), Honda (33.4 percent), and Audi (31.5 percent).

Regional Variances

Car and light truck retail registrations from Northern and Southern California markets are up from last year. The Northern market captured an additional 10.1 percent of the statewide total year over year, with the Southern portion of the state showing an 8.8 percent increase from 2022.

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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 CA’s new vehicle market, includes annual trends, a two-year perspective, vehicle powertrain dashboard, segment watch, the top models in each segment, brand scoreboards, regional comparisons, and more. Access the complete report at www.cncda.org.

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.

California New Car Dealers Association Releases Third Quarter 2023 Auto Outlook

Contact: Autumn Heacox, Communications & Marketing Director: aheacox@cncda.org, (916) 441-2599 x105

California 3Q 2023 Auto Market Recap: Registrations Continue to Rise
New EV Models Contribute to 14.3 % Sales Increase YTD

Click on the image to view the report.

SACRAMENTO, CA, November 1, 2023 – The third quarter 2023 Auto Outlook report, published today by the California New Car Dealers Association (CNCDA), reveals a 14.3 percent increase in California’s new vehicle registrations compared to the first nine months of 2022. Forecasts from the Auto Outlook report show that California will end the year at 1.8 million new vehicle registrations and is predicted to reach 1.88 million in 2024. CNCDA’s historical Auto Outlook data is sourced from Experian Automotive. Click here to access the full report.

Pent-up demand remains high since the pandemic and is estimated to continue to support new vehicle sales for years to come. However, high interest rates leading to weakening affordability, depleted pandemic-built household savings, and the potential UAW strike after effects will be major factors in impeding the state’s new vehicle sales. That said, California’s Q3 2023 new car registration numbers are a full percentage point better than the national results, which yielded only a 13.3 percent improvement vs 2022.

A promising sign: the pace of new car sales showed a significant acceleration in Q3 with an increase of 21.1 percent YOY, versus last year’s Q3 numbers which showed a decline of 14.1 percent.

New to this Auto Outlook report: a more robust breakdown of the state’s new battery electric vehicles (BEV) and plug-in hybrid (PHEV) sales and market health breakdown. The report now includes YTD and quarterly electric, hybrid, and PHEV sales numbers. Key figures: the state’s BEV market share increased to 21.5 percent during the first nine months of 2023. California’s total new BEV market share sales increased by half a percent from the first six months of this year.

While ICE-powered vehicles account for 64.6 percent of the state’s new vehicle sales share, sales were down from 71.6 percent in 2022. Sales of BEVs, PHEVs, hybrids, and fuel cell sales in the state accounted for a 35.4 percent share YTD (as compared with 11.6 percent in 2018).

“Meeting our customers’ needs, whether it’s continued demand for ICE vehicles, hybrids, or new EV options, is our top priority, and we are looking to expand our vehicle offerings.” says Tony Toohey, CNCDA Chairman and Owner of Auburn Toyota “As a local new car dealer, we want to offer our customers and community the variety of vehicle options they want at price points that meet their individual circumstances,” says Toohey.

Hybrids and Electric Vehicles
California leads the way in the shift towards new auto technologies, leading BEV registrations nationwide, with almost 35 percent of all sales. The report also shows a 103 percent increase in BEV vehicle sales this year from franchised dealers. Direct-to-consumer sellers (i.e., Tesla, etc.) showed a 42 percent increase in sales YOY.

California’s BEV market share remains at just over 21 percent in the first nine months of 2023. This is a significant difference from the nation’s BEV market share, which reaches only 7.4 percent of sales, YTD.
The Q3 report lists California’s top-performing BEV and PHEV makes and models. The top three selling BEV and PHEV models: Tesla Model Y, Tesla Model 3, and the Chevy Bolt. Fourth place was captured by the Jeep Wrangler (the best-selling PHEV on the list).

While Tesla continues to be the BEV market share leader in California, new numbers show their lead diminishing as traditional automakers roll out new electric vehicle models. Tesla showed a significant decline in sales at an 8.9 percent loss in share (when comparing YTD ’22 to ’23 numbers). Mercedes and BMW show the highest increases of BEV sales in California, picking up 2.6 and 2.5 percent of the share, respectively.

The Q3 market share leaders for exclusively PHEV makes were Jeep (capturing 29.8 percent), Toyota (at 17.6 percent) followed by BMW (at 12.8 percent).

So far this year, Northern Californians remain the larger adopters of BEVs, capturing 25.7 percent of the market share, while Southern CA BEV sales reported 21.1 percent of registrations.

Model Segment Rankings
California’s best-selling models for the first nine months in the primary segments remain the same as last quarter (and have increased/decreased their individual segment share by the following percents): Honda Civic (-.2), Toyota Camry (-.5), Tesla Model 3 (+2.4), Toyota Tacoma (-1.5), Ford F-Series (+.2), Toyota RAV4 (+.4), Toyota Highlander (-1.2), and the Tesla Model Y (-1.4).

Brand Market Share and Summary
Toyota remains California’s market share leader, holding 15 percent amongst all vehicle brands, followed by Tesla at 13.5 percent, Honda at 9.5 percent, Ford at 7.8 percent, and Chevrolet at 6.8 percent. Registration numbers increased by over 20 percent for Rivian, Buick, Tesla, Honda, Audi, Acura, Volvo, Chevrolet, Cadillac, Hyundai, Genesis, and Land Rover.

The state’s registration numbers do not mirror the rest of the U.S., which reports Toyota and Ford as the top-selling brands at 12.2 and 12 percent (respectively), followed closely by Chevrolet at 11.3 percent.

Brands showing the most significant positive change in registration numbers for Q3 ’23 compared to Q3 ’22 were: Rivian (176.8 percent), Buick (44.6 percent), Tesla (38.5 percent, and Honda (34.7 percent). Brands underperforming from last year: Dodge (-24.6 percent), Ram (- 15.8 percent), and Jeep (-6.7 percent).

Market Share Trends by Segment
SUV sales account for 53 percent of the California market in the first nine months of 2023, with non-luxury vehicles holding the majority share at 34 percent. This segment lost a point when compared to YTD 2022 numbers, while Luxury SUVs gained two points from last year at this time.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends, please acknowledge the Data Source: Experian Automotive.

The report provides comprehensive information on CA’s new vehicle market, includes annual trends, a two-year perspective, vehicle powertrain dashboard, segment watch, the top models in each segment, brand scoreboards, regional comparisons, and more. Access the complete report at: www.cncda.org.

About CNCDA
For 99 years, the California New Car Dealers Association has represented California’s franchised new car and truck dealers and their interests. 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 new car and truck dealers—with over 1,200 members—CNCDA provides legal compliance and legislative, regulatory, and legal advocacy.

California New Car Dealers Association Releases Second Quarter 2023 Auto Outlook

Contact: Autumn Heacox, Communications & Marketing Director: aheacox@cncda.org, (916) 441-2599 x105

CA 2Q 2023 Auto Market Recap: Registrations Surge Higher Than Expected
Sold Vehicles Up 16.8% From
Last Year

Click on the image to view the report.

SACRAMENTO, CA, July 19, 2023 – The California New Car Dealers Association (CNCDA) releases its second quarter 2023 California Auto Outlook report today, showing an 11.6 percent increase in new vehicle registrations in the first six months of 2023 when compared to the same time last year. 2023 projections indicate registrations will reach 1.8 million units, as forecasted by Auto Outlook. This is an increase from the predicted 1.78 million from 1Q 2022, thus surpassing 2020-2022 reported figures (approaching 2019 numbers). CNCDA’s quarterly Auto Outlook Report data is provided and verified by Experian Automotive.

Continued pent-up demand is estimated at 700,000 units, approximately 40% of annual registrations. This “stored potential” is expected to offset any sales drag from softening vehicle affordability. This recovery in CA’s vehicle market has enough momentum to track even higher, with new vehicle sales predicted to grow almost certainly into 2024.

2Q 2023 is particularly noteworthy because it’s the third consecutive quarterly increase in registrations within the state since 2Q 2021, and it’s a significant bump: up 16.8 percent from 2Q 2022. For reference, last quarter’s numbers posted a 6.5 percent increase. When comparing YTD registration numbers from 2022 to 2023, registrations report at 905,752 vs 811,318 (11.6 percent increase).

“It’s a great time to purchase a new vehicle,” says Tony Toohey, CNCDA Chairman and Owner of Auburn Toyota. “We currently have rising inventories on the horizon, and we are happy to provide information to our customers about newly released traditional and electric vehicle models from our manufacturing partners,” says Toohey.

Hybrids and Electric Vehicles

The state’s BEV (battery electric vehicle) market share has exceeded 21 percent in the first half of 2023, well above the 16.4 percent reported for all of 2022. Hybrid units sold (including and excluding plug in) have tracked similar increases of .6 percent YTD each.

New registrations for BEVs sold at franchised dealerships experienced a significant growth of 125 percent in the first half of this year. As a result, franchised dealerships’ market share in the state’s new retail BEV market rose from 23.2 percent in the first half of 2022 to 32.8 percent so far this year. Registrations for BEVs sold by direct sellers saw a 40 percent increase from this time last year.

2Q 2023 showed that Northern Californians are more willing to adopt BEVs, as those vehicles captured 25.9 percent of the market share, while Southern CA BEV sales reported 20.9% of registrations.

Market Share Trends by Segment

The luxury SUV market share grew by three percent in 2023, hitting 20% of total units sold in the state YTD. The segment captured a one percent share from the non-luxury SUVs, pickups and vans, and the non-lux midsize and large car segments, respectively.

Model Segment Rankings

Toyota remained a brand leader, providing four of the eight best-selling vehicles in the primary segments for 2Q 2023. Toyota’s Camry, Tacoma, RAV4, and Highlander topped the Mid-Size and Large Cars, Comp./Mid Size Pickup, Compact SUV, and 3 Row Mid-Size SUV spots. The Honda Civic was the best-selling Small Car, the Tesla Model 3 topped the Near Luxury Car, the Ford F-Series was the best-selling Full Size Pickup, and the Tesla Model Y was the top Luxury Compact SUV.

Brand Market Share and Summary

Toyota also held the top of California’s market share at 14.7 percent amongst all vehicle brands, followed by Tesla at 13.6 percent, Honda at 9.3 percent, Ford at 8.1 percent, and Chevrolet at 6.9 percent. As the Golden State continues to pave its own way, CA’s numbers differ notably from the rest of the U.S., which reports Ford as the top-selling brand at 12.2 percent, followed closely by Toyota at 12 percent, then by Chevrolet at 11.1 percent.  

New this quarter, Experian Automotive has provided detailed sales data for a previously named “Other” category in registrations by brand, which included smaller startup brands. YTD, the following brands saw more than a 22 percent increase in units sold: Rivian, Polestar, Genesis, Tesla, Chevrolet, Cadillac, Audi, and Hyundai.

Regional Variances

All registrations from cars and light trucks between Northern and Southern CA markets were up. The SF Bay Area regional market captured 14.1 percent of the statewide total, followed by LA and Orange Counties at 8.9 percent, then by San Diego County at 5.4 percent.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian Automotive.

The report provides comprehensive information on CA’s new vehicle market, including annual trends, a two-year perspective, segment watch, the top five models in each segment, brand scoreboards, regional comparisons, and more. Access the complete report at: www.cncda.org.

About CNCDA

For 99 years, California New Car Dealers Association has represented the interests of 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, service, and repairs. In 2022, CA’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 new car and truck dealers—with over 1,200 members—CNCDA provides legal compliance and legislative, regulatory, and legal advocacy.

California New Car Dealers Association Releases First Quarter 2023 Auto Outlook

Contact: Autumn Heacox, Communications & Marketing Director: aheacox@cncda.org, (916) 441-2599 x105

CA 1Q 2023 Auto Market Recap: New Sales Show Positive Numbers;
EV, Overall 2023 Registrations Expected to Grow

Click on the image to view the report.

May 15, 2023, SACRAMENTO – The California New Car Dealers Association released its first quarter 2023 California Auto Outlook report today, showing significant improvement in new vehicle registrations compared to 1Q 2022 numbers.

Overall, 2023 projections indicate that registrations are expected to increase roughly 6.9 percent more than last year (just shy of 2021 sales numbers), despite increasing economic uncertainty in the state and nationwide. CNCDA’s quarterly Auto Outlook data is sourced from Experian Automotive.

Report highlights reflect that pent-up demand (due to supply chain and inventory shortages) kept new car sales somewhat insulated from economic dips felt in other sectors. As noted in our previous report, 4Q 2022 was a bright spot last year, and 1Q 2023 is proving to continue this upward sales trend, with a 5.8 percent increase (450,000 registrations) YTD versus 1Q 2022, at 425,216 registrations posted. Much of this increase is directly attributed to the recent large volume of fleet sales in California.

Additionally, as franchised dealers roll out new electric vehicle models from their respective original equipment manufacturers (OEMs), Californians’ appetite for Zero Emission Vehicles (ZEVs) continues to grow. The new electric and hybrid/ electric vehicle market share sales grew staggeringly last quarter, posting the highest percentages California has ever seen at 34.2 percent of the market share in 1Q 2023 (up from 31.1 percent in all of 2022).

The recent increase in ZEV market share is likely due to more 2023 ZEV models available and Californians’ willingness to shift to and adopt electric and hybrid vehicles. Unsurprisingly, CA again places first for ZEV sales at 24.2 percent, while the next closest state is OR, coming in at roughly 17 percent for ZEV retail vehicle registrations last quarter.

However, as franchised dealers continue to offer more electric and hybrid options to CA’s motoring public, their market share is steadily rising. Last quarter franchised new car dealers showed a noteworthy 140 percent increase in ZEV sales YTD, while direct-to-consumer EV sellers (such as Tesla) were up only 15 percent YTD in CA.

“It’s an exciting time for franchised new car dealers in California. We are getting new inventory, and the latest ZEV models are rolling out from the mainstay manufacturers. It’s exciting to offer the types of cars our customers have been asking for,” said CNCDA Chairman Tony Toohey, owner of Auburn Toyota. “Each new car dealership in California has roughly 95 employees, so when a consumer buys from a dealer, they directly support the livelihoods of hard-working people and their families. This is why we value our returning customers tremendously.”

Brand Market Share

Toyota held the top of California’s market share last quarter at 15.3 percent amongst all vehicle brands, followed by Tesla at 11.8 percent, Ford at 8.9 percent, Honda at 8.7 percent, and Chevrolet at 7.7 percent.

Interestingly, Chevrolet had an outstanding first quarter of 2023, with a 47.1 percent increase in registrations. Followed by Genesis at 41.8 percent, Buick at 39.7 percent increase, Audi with a 38 percent increase, and the fifth-place spot was taken by Porsche, posting a 31.6 percent increase.

On the other hand, Californian’s love affair with Tesla may have already reached a plateau. The report reveals that the company posted only a 10.6 percent increase for 1Q 2023 compared to registrations for the same time last year. With more OEMs offering newer ZEVs this year and next, Tesla registrations in CA may continue to stall or even decline.

Fleet and Retail Market Share

Notably, the increase in California’s YTD registrations was primarily due to fleet car sales which were up 47.0 percent. Fleet light trucks were up 35.3 percent, and retail light trucks were up 2.2 percent. The only decline was in retail car sales, down by 1.7 percent compared to 2022 YTD.

Regional Variances

SF Bay Area’s new vehicle market showed very promising signs of growth. For the first time in a year, the region showed positive sales, reporting an impressive 9.8 percent increase from this time last year. The Southern California overall market is nearly identical to last year’s sales, posting a .1 percent increase. Northern California registrations only rose 2.6 percent YTD.

The complete report can be accessed on CNCDA’s website.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian Automotive.

The report provides comprehensive information on the state’s new vehicle market and includes annual trends, a two-year perspective, segment watch, the top five models in each segment, brand scoreboards, regional comparisons, and more. Access the complete report at: www.cncda.org.

About CNCDA

For 99 years, California New Car Dealers Association has represented the interests of 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, but also provide customers with automotive products, parts, service, and repairs. CA’s franchised new car dealers sold more than 1.6 million new cars and trucks in 2022 and employed more than 136,000 Californians.

In 2022, new car dealers significantly contributed to CA’s economy, paying $8.46 billion in sales tax and giving $62.84 million in donations to charitable and civic organizations. As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA provides legal compliance and legislative, regulatory, and legal advocacy.

California New Car Dealers Association Releases Fourth Quarter 2022 Auto Outlook

Contact: Autumn Heacox, Communications & Marketing Director: aheacox@cncda.org, (916) 441-2599 x105

CA 2022 Year-End Auto Market Recap: Supply Chain Issues, EV Sales Spike, and More…
2023 Outlook Predicts New Vehicle Registrations to Increase

Click on the Image Above to View the Report

SACRAMENTO, CA, February 7, 2023 – The California New Car Dealers Association released its fourth quarter 2022 California Auto Outlook report today. The report outlines 2022 vehicle registration data and estimates projected 2023 sales in California’s auto market.

The major takeaways: Supply chain issues persisted throughout the year resulting in vehicle production cutbacks in numbers higher than anticipated. While vehicle registrations were lower than in 2021, they didn’t drop to 2020 pandemic-year levels. The fourth quarter was a bright spot in 2022, seeing a 13.6 percent increase in new light vehicle registrations versus the same period in 2021.

Predictions for 2023 include increased new vehicle registrations to 5.5 percent, approaching 1.76 million. Additionally, due to pent-up demand and low vehicle inventory availability since the pandemic, an estimated 43 percent of sales have been delayed. This along with transaction prices lowering to match supply levels should result in increased registrations for 2023. However, inflation, lingering supply chain issues, and increasing interest rates are expected to tamper these numbers. 

A positive in California’s 2022 new vehicle market: sales of electric vehicles, with an estimated increase in market share of 17.1 percent. While vehicle pricing was a major concern in 2022, sales of pure EVs increased by over 50 percent from 2021. California is clearly doing its part to increase EV sales.

Notably, the hybrid market share also continues to steadily grow, despite overall declining sales.

Finally, while Tesla had the top two selling vehicles last year, Toyota retained its crown as the market share leader for vehicle brands in the Golden State.

Year-to-date, new vehicle sales in California dipped further than nationwide numbers, at 10.2 percent. Comparatively, nationwide sales dropped 7.9 percent in 2022.

Year over year, luxury & sports cars and the luxury car market shares increased by 3 percent, taking these points from the small car market in California. Overall, for 2022, the California hybrid/ EV market share held at 31.1 percent.

“With ZEV product announcements every day, we’re seeing the latest and greatest in technology and innovation in new car makes and models by the major automakers. As dealers, we are eagerly waiting to receive these cars and get them into the hands of our longstanding customers. California drivers want these cars now,” said California New Car Dealers Association Chairman, Tony Toohey, Owner of Auburn Toyota.

“Dealers know the hybrid/ EV demand in California is increasing and we are ready to help our manufacturers roll out these vehicles to meet the consumers’ needs,” said Toohey.

Brand Market Share

Toyota remained at the top of California’s market share in 2022 at 17.3 percent, followed by Tesla at 11.2 percent, Ford at 8.4 percent, Honda at 7.9 percent, and Chevrolet at 6.8 percent.

Interestingly, Californian’s appetite for Tesla vehicles is much larger than the nationwide average, which accounts for only 3.5 percent of the brand market share. Tesla, Genesis, Cadillac, Mercedes, and Kia saw increased new vehicle registrations in California year over year, while all other brands saw declines.

Fleet and Retail Market Share

The California fleet market in 2022 fared better than the retail market, with fleet car sales down only 15.1 percent (compared with retail sales down 16.1 percent). While retail light truck sales were down 9.1 percent, fleet light trucks gained 9.3 percentage points.

Primary Segment Leaders and Model Rankings

Leading luxury car and light truck brands in the Golden State included Tesla, Mercedes, and BMW. Non-luxury car brand leaders were Toyota, Honda, and Nissan in 2022. The leading non-luxury light truck brands were Toyota, Ford, and Chevrolet.

The Tesla Model Y was the top-selling light truck in 2022, with 87,257 registrations (7.6 percent of the market share). Second place: the Toyota RAV4, with 59,794 units sold. The Ford F-Series placed third and was the top-selling full-size pickup truck at 40,232 registrations. The top-selling compact/mid-size pickup truck in California was the Toyota Tacoma, holding 46.2 percent of the share.

The top-selling passenger car model in the state is the Tesla Model 3 with 78,934 registrations, the Toyota Camry came in second with 55,967 registrations (capturing 10.2 percent), followed by the Toyota Corolla at 39,865 registrations.

Regional Variances

The Southern California car market fell 17.1 percent as compared to Northern California dipping 13.9 percent. As with previous quarters, the San Francisco Bay regional market was the most insulated from a decline in sales, falling only 7.2 percent in 2022.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

The report provides comprehensive information on the state’s new vehicle market. The report includes annual trends, a two-year perspective, segment watch, the top five models in each segment, brand scoreboards, regional comparisons, and more. The complete report can be accessed on CNCDA’s website at: www.cncda.org

About CNCDA

For 99 years, the 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, services, and repairs. Our members sold more than 2 million new cars and trucks in 2019 and employed more than 140,000 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.

California New Car Dealers Association Releases Third Quarter Auto Outlook

Contact: Autumn Heacox, Communications and Marketing Director: aheacox@cncda.org, (916) 441-2599

Economic Uncertainty Results in Reduced New Car Sales Statewide
Toyota Holds California Market Share Lead as EV Sales Continue to Rise

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Nov. 7, 2022 (SACRAMENTO)
– Franchised new car dealers in California are trying to catch up with high demand despite a decline in new car sales in the third quarter of 2022.  Click here to view the full report.

The weakened economy, supply chain issues, labor availability, and chip shortages all lead us to predict that new vehicle registrations in 2022 will only hit 1.68 million by the end of the year (lower than we anticipated last quarter).

Year-to-date, new vehicle sales in the United States dropped 13 percent as compared with 2021. Comparatively, California’s decline in sales slipped 16.1 percent when compared to the first nine months of 2021. While Q3 posted a statewide double-digit light vehicle registration decline for the fourth quarter in a row, that streak is expected to end as we reach the end of 2022 and anticipate an increase in these registrations.

Year over year, SUVs (both luxury and non-luxury) have increased market share by three percent, increasing from 48 percent in Q3 2021 to 51 percent in Q3 2022. The estimated electric vehicle (EV) market share hit 15.8 percent. Overall, this year the hybrid/ EV market share is at 29.9 percent.

“As California’s economy remains uncertain, statewide franchised new car dealers are encouraged by the continued strong consumer demand for vehicles of all makes and models,” said California New Car Dealers Association Chairman, John Oh, General Manager, Lexus of Westminster.

“Our dealers are anxiously awaiting an inventory influx of both internal combustion engine and electric vehicles from our manufacturers. We have long-standing relationships with our loyal customers and we’re ready and willing to help get them the vehicles they desire today. We simply need our manufacturers to make and send us more cars,” said Oh.

Brand Market Share

Toyota remains a vital mainstay in California, continuing to capture the largest segment of new car sales market share at 17.4 percent, followed by Tesla, then Ford rounding out the top three brands in California. Both Tesla and Genesis increased new vehicle registrations for Q3, while all other brands saw declines. Hybrids excluding plug-in registrations also rose year-to-date up to 11.2 percent; however, plug-in hybrid registrations declined slightly from last year, only reaching 2.9 percent of registrations so far this year.

Segment Market Share

Interestingly, midsize vehicles are performing much better than the overall market only down 13.2 percent while the industry average sits at 21.6 percent lower than last year. Two-row SUVs have been gaining market share in their segment, up 3.3 percent from 2019.  Light trucks accounted for 68.3 percent of the California new vehicle market compared to 78.9 percent in the Nation.

Model and Brand Rankings

The Tesla Model Y remains the top-selling light truck in the California market with 61,544 registrations this year. In second place: the Toyota RAV4 with 44,738 units sold.  The top-selling passenger car model YTD in the state is the Tesla Model 3 with 56,851 registrations and the Toyota Camry came in second with 40,350 registrations capturing 10.2 percent of the market share. As with last quarter, the state’s top-selling mainstays were impacted by inventory shortages.

Regional Variances

Both Northern and Southern California performed similarly in terms of the percentage of change year to date, with percentage declines of 16.2 and 16.8, respectively. As with last quarter, the San Francisco Bay market was least affected by the decline in sales, but only marginally showing a percentage drop of 13.3 while LA and Orange counties declined by 17.9 percent and San Diego dropped by 14.5 percent.

The California Auto Outlook Third Quarter 2022 Market Report provides comprehensive information on the state’s new vehicle market. The report includes annual trends, two-year perspective, segment watch, including the top five models in each segment, brand scoreboards, regional comparisons, and more. The complete report can be accessed here.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

About CNCDA

For more than 95 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 2 million new cars and trucks in 2019 and employed more than 140,000 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. 

California New Car Dealers Association Releases Second Quarter Auto Outlook

Contact: Autumn Heacox, Communications and Marketing Director: aheacox@cncda.org

Economic Turmoil Allows Car Dealers to Replenish Supply, Fulfill Needs
Californian’s Desire for Electric Vehicles Drives Demand

SACRAMENTO, CA – As expected the high pent-up demand for both new and used vehicles is holding strong and will provide a boost in California’s vehicle market despite a weakening economy.   

While the current economic impact of low unemployment and high inflation is felt across nearly every industry in the nation, the demand for both new and used vehicles remains strong in the State. While lower economic growth and weakening consumer affordability is hitting most industries hard, new vehicles registrations in California are expected to only soften a bit in the coming months as we expect about 1.8 million new vehicles to be sold in the state during 2022, down slightly from 2021 but better than the 1.64 million in 2020.

Although vehicle sales in the United States dropped 18.3 percent, California’s decline in sales only fell 17.9 percent for 2022. Interestingly, in California, domestic car registrations only fell 6.3 percent as compared to an 11 percent decline nationwide. Similarly, California’s light truck registrations also fell by less than U.S. numbers (14.6 percent vs 15.9 percent) while increasing in market share by 2.7 points year-to- date.

“As the vehicle market continues to navigate high demand, chip shortages, supply chain issues and production problems, the current economy could allow dealerships to help replenish their inventories as manufacturing of new vehicles is able to catch-up with demand, California New Car Dealers Association Chairman, John Oh, General Manager of Lexus of Westminster. “We are thankful California isn’t being hit as deeply as other regions in the nation across all vehicle registration sectors. Additionally, we are seeing some increased interest in the electric vehicle market that are very promising.”

Brand Market Share

While most brand registrations saw declines, both Tesla and Genesis were able to capture the windfall, indicating that California consumers are increasingly interested in purchasing alternative powered vehicles. Electric vehicle sales reached the highest numbers reported in the last five years, hitting 15.1 percent year-to-date—a sharp increase from last year’s 9.5% total.  Tesla registrations increased by 82.2 percent and Genesis saw an increase of 53 percent. Kia, Mercedes, BMW, Ford, and Subaru saw less than 15 percent declines. Toyota continues to lead both the non-luxury car and light truck brand market share by 34.5% and 21.1%, respectively.

Segment Market Share

Larger, family-friendly vehicles continue their reign as those most sought by consumers, bringing their market share to 35 percent, down one percent from last year. Small cars saw a larger decline, hitting 11 percent, down from 16 percent last year. Luxury SUVs saw a two percent increase from last year, making up 17 percent of sales, with non-luxury mid and large sized cars remaining relatively stagnant at 9 percent, and the luxury and sports car segment increasing to 11 percent.  

Model and Brand Rankings

The Tesla Model Y reigns as the top selling car in the California market with 42,320 registrations so far this year. In second place: the Tesla Model 3 with 38,993 units sold, further indicating the statewide demand for EVs. New registrations of the Honda Civic, Toyota Camry and Corolla, the state’s top-selling mainstays, were impacted by inventory shortages but still remained at the top of their segment categories.

Regional Variances

The San Francisco Bay market seems to be the least affected by the decline in sales, posing the smallest statewide percentage drop at 12.9 percent. Overall statewide sales in the first two quarters of 2022 dropped 16.4 percent lower than in 2021. Northern California was slightly more insulated with a 15.9 percent drop to Southern California’s 16.6 percent.

The California Auto Outlook Second Quarter 2022 Market Report provides comprehensive information on the state’s new vehicle market. The report includes annual trends, two-year perspective, segment watch, including the top five models in each segment, brand scoreboards, regional comparisons, and more. The complete Q2 2022 report can be accessed here.

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California Auto Outlook Quarterly is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

About CNCDA

For more than 95 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 2 million new cars and trucks in 2019 and employed more than 140,000 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. 

California New Car Dealers Association Releases First Quarter Auto Outlook

California New Car Dealers Assn. releases “California Auto Outlook” for first quarter of 2022, findings include that total new vehicle registrations dropped 13.8% compared to first quarter of 2021 — 493,160 total registrations in 2021 compared to 425,216 in 2022; also reports “electric vehicles, hybrids and plug-in hybrids have captured a record-high 28.3% market share in California – up 5% from last year” with the Tesla Model Y being the top seller with 21,812 registrations.
Contact: Emma Manoukian, emanoukian@bcfpublicaffairs.com.

The full Q1 California Auto Outlook, containing a detailed breakdown of auto sales, including brand comparisons, segment totals, and more, can be found by clicking here.

California New Car Dealers Association Releases Third Quarter Auto Outlook

Supply Restrictions Limit New Vehicle Sales

Electric Vehicles Continue a Strong Rise in Sales, Mirrored by Expanding Options

SACRAMENTO, CA – While demand for vehicles continues to increase to pre-pandemic levels, supply bottlenecks are preventing a full recovery. Earlier estimates hoped for a slightly stronger recovery, with new vehicle sales expected to approach 2 million for the year. The ongoing microchip issue has led to a more bearish outlook, trimming expectations closer to 1.85 million for the year. Despite the slightly leaner estimation, sales are still expected to surpass 2020 numbers by nearly 13 percent.

“The impacts of the ongoing microchip shortage certainly can’t be ignored, but California’s new car dealers are working tirelessly to ensure that the needs of our motoring public are met,” said California New Car Dealers Association Chairperson, Mark Normandin, owner of Normandin Chrysler Jeep Dodge Ram FIAT. “Despite this challenge, with patience from consumers, the nature of California’s competitive automotive marketplace has allowed our industry to continue providing the vehicles sought by buyers, with the same quality of service they have come to expect.”

Major Trends at a Glance

Electric vehicles continued their strong emergence, as consumer demand increases alongside new models entering the market. This week’s LA Auto Show highlighted this growing market, with automakers unveiling an assortment of new electric vehicles in their model lineups. Manufacturers are racing to establish themselves with their consumer bases, as more buyers look towards electrification. This comes as EVs increased their market share in Q3 to 8.3 percent, a full 2 percent over 2020.

Along with EVs, hybrids also showed a strong presence continuing their longtime growth, now commanding 10.3 percent of the market, and plug-in hybrids joined the trend, increasing to 3.3 percent in total sales. Altogether, hybrid and electric sales have expanded to nearly 22 percent of the market share.

The LA Auto Show unveilings also mimicked another growing trend among consumers, the continued desire for SUVs. In the first three quarters of 2021, nonluxury SUVs made of 34 percent of all new vehicle sales, with pickups and vans a distant second at 17 percent.

Despite sales bottlenecks, the new vehicle market continued its strong recovery from last year. As consumer demand remains low for many products, car buyers are returning to dealerships eagerly searching for their next vehicle. Yet, while demand shows a major comeback, the reality of the COVID pandemic remains, with exterior factors continuing to impact global supply chains.

The full Q3 California Auto Outlook can be found by clicking here.

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

About CNCDA

For more than 95 years, CNCDA 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 2 million new cars and trucks in 2019 and employed more than 140,000 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 1,100 members—CNCDA serves its members by providing legal compliance and legislative, regulatory, and legal advocacy. 

Auto Outlook: 2021 Q1

State New Light Vehicle Registrations Predicted to Increase by 10 Percent in 2021

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