Antelope Valley Volkswagen is hosting a Thanksgiving Drive
Diablo Subaru of Walnut Creek hosted pet adoption event via “Subaru Loves Pets Campaign”
Marin Subaru donating proceeds from car sales this month to local charities
Modesto Subaru has opened and sponsored an Ice Rink for their community
Hatfield Buick GMC is hosting a toy drive starting this month
Hello Mazda Thanksgiving Meal Drive
SACRAMENTO, CA – The California New Car Dealers Association would like to express our heartfelt appreciation to all who attended the 2023 Annual Convention. We appreciate all the members who came to celebrate, reconnect, and gave their time for professional development and inspiration. We hope you join us again next September on the BIG island at the Four Seasons Hualalai.
Additionally, we want to 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!
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
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.
Cummings Automotive Group – Believe Walk (Breast Cancer Awareness)
Dublin Honda – Project Courage
Future Ford of Sacramento worked with Ford Motors to donate meals
Premier Subaru of Fremont sponsoring Hers BCF Walk-a-thon
FOR IMMEDIATE RELEASE
(New York, NY, October 18, 2023) The nomination of Steve Pleau, CEO and dealer principal at Future Ford Lincoln of Roseville in Roseville, California, for the 2024 TIME Dealer of the Year award was announced today by TIME.
Pleau is one of a select group of 49 dealer nominees from across the country who will be honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on February 3, 2024.
The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Pleau was chosen to represent the California New Car Dealers Association in the national competition – one of only 49 auto dealers nominated for the 55th annual award from more than 16,000 nationwide. Additionally, Steve will act as the association’s nominee as we celebrate 100 years of protecting and promoting our members’ interests.
“What truly fills me with pride is witnessing our employees’ growth and progression within the organization,” nominee Pleau said. “Knowing that I’ve played a role in their development and career advancement is immensely satisfying.”
A 1969 graduate of California State University, Sacramento, where he earned a B.S. in Business Administration, Pleau always knew he wanted to be a car dealer. His father, Gene Pleau, acquired a Ford dealership in Sacramento in 1963 and Pleau was introduced to the industry at a young age.
During his teenage years and early twenties, he was washing cars, maintaining the lot, managing parts inventory, and assisting in the service department. When he later transitioned into a sales associate role, he realized he had a knack for selling and forging relationships with customers.
“It was during those formative years that I knew I wanted to be a part of this fiercely competitive yet immensely rewarding industry, following in my father’s footsteps,” Pleau said. “My dad’s dedication and hard work paved the way for our family’s automotive legacy.”
After college, Pleau, who also served in the California National Guard from 1968 to 1974, started his career at the dealership full-time. He rose to General Sales Manager and in 1981, took a leap of faith and opened his own store, Future Ford of Roseville.
“Armed with an extensive skillset, in-depth knowledge of the Ford product line, and a profound understanding of the value of treating customers and employees like family, I embarked on this entrepreneurial endeavor,” he said. “I owe much of my career growth to my father’s invaluable mentorship and the many roles I undertook in all departments at his dealership, which laid a solid foundation.”
Pleau began to grow his footprint and acquire dealerships in northern and central California. Today, the Future Automotive Group encompasses 14 new-car dealerships with 23 franchises and three commercial fleet service centers, employing more than 1,300 Californians. His son, Geoff, is the next generation to carry on the family legacy.
One of Pleau’s proudest moments came in 2018 when he was inducted into the Ford Dealer Hall of Fame, becoming the sixth inductee to receive this prestigious honor from Ford Motor Company.
“This recognition stands as a highlight of my career, symbolizing the culmination of years of hard work, dedication, and a genuine passion for the automotive industry,” he said. “I share it with my team of hardworking, competent colleagues who have provided me with invaluable support and inspiration over the years.”
In the area of community and civic service, Pleau focuses on activities that have a significant impact locally. He believes it is a privilege and duty to give back to the communities that his dealerships serve and that have been integral to his success.
He is currently on the board of the Greater Sacramento Economic Council, a public-private partnership that promotes economic development, job creation, sustainability, equity, and competitiveness in the region.
“Whether a company is looking to relocate, expand, or build, our experts are ready to assist them by navigating and identifying solutions to meet their business goals,” Pleau said. “As a founding board member, I have spent countless hours helping businesses and supporting the local economy.”
Future Automotive Group also encourages its employees to be good corporate citizens and to give back to the organizations and causes that mean the most to them. The company supports time off for community service and donates to many charities and nonprofits, fostering their social responsibility.
In addition, Pleau’s dealerships and his customers join him in supporting Shriners Children’s Northern California through a bi-annual toy drive; local food banks by holding canned food drives; the American Cancer Society’s Making Strides Against Breast Cancer of Sacramento by organizing events and fundraising activities, and by wearing pink during October, Breast Cancer Awareness Month.
“I am also actively involved in supporting public and private schools, as well as their athletic programs,” he said. “On a personal level, my wife and I recently donated $1 million to the University Foundation at Sacramento State, our alma mater, to help build a new health and wellness facility.”
Pleau added, “By giving back and investing in the betterment of our society, I aim to ensure that future generations can enjoy the same opportunities that have enabled me and my dealerships to flourish over the years.”
Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities and the winner will receive $10,000 to give to charity, donated by Ally.
In its 13th year as exclusive sponsor, Ally also will recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees will be recognized on AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees.
“At TIME, we are proud to uphold the decades-long tradition of honoring automotive dealers who make a positive impact and show dedication to their communities through our TIME Dealer of the Year award,” said TIME CEO Jessica Sibley. “We are excited to keep this tradition of applauding these community contributions together with our partners at Ally.” Doug Timmerman, president of dealer financial services, Ally, said, “Auto dealers nominated for the TIME Dealer of the Year award have demonstrated an unwavering commitment to not only the industry but to their respective communities through volunteerism, sponsorships, and supporting charitable causes, no matter the market climate. Whether their clients are purchasing a first car or upgrading for a growing family, these selected dealers have successfully extended their relationships beyond the showroom and have been steadfast in driving their communities forward.”
Pleau was nominated for the TIME Dealer of the Year award by Brian Maas, president of the California New Car Dealers Association.
Pleau and his late wife, Vicki, have two children and five grandchildren.
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About TIME
TIME is the 100-year-old global media brand that reaches a combined audience of over 120 million around the world through its iconic magazine and digital platforms. With unparalleled access to the world’s most influential people, the trust of consumers and partners globally, and an unrivaled power to convene, TIME’s mission is to tell the essential stories of the people and ideas that shape and improve the world. Today, TIME also includes the Emmy Award®-winning film and television division TIME Studios; a significantly expanded live events business built on the powerful TIME100 and Person of the Year franchises and custom experiences; TIME for Kids, which provides trusted news with a focus on news literacy for kids and valuable resources for teachers and families; the award-winning branded content studio Red Border Studios; an industry-leading web3 division; the website-building platform TIME Sites; the sustainability and climate action platform TIME CO2; the new e-commerce and content platform TIME Stamped, and more.
About Ally Financial
Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and an industry-leading auto financing business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The company serves more than 11 million customers through a full range of online banking services (including deposits, mortgage, point-of-sale personal lending, and credit card products) and securities brokerage and investment advisory services. The company also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies, as well as auto financing and insurance offerings. For more information, please visit www.ally.com and follow @allyfinancial. For more information and disclosures about Ally, visit https://www.ally.com/#disclosures. For further images and news on Ally, please visit http://media.ally.com.
About the NADA Show
The annual NADA Show brings together more than 20,000 franchised dealers and their employees, industry leaders, manufacturers and exhibitors to learn about the latest auto industry tools, trends, products and technologies.
About CNCDA
For 100 years, the California New Car Dealers Association has protected and promoted 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 repair. Our members sold more than 3 million new cars and trucks in 2022 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.
CNCDA’S FRANCHISE BILL (AB 473) SIGNED BY GOVERNOR NEWSOM
(10.08.23, Sacramento)- Yesterday, California’s Governor officially signed the California New Car Dealer Association’s 2023 Franchise Bill (AB 473), signaling a massive win for franchised new car dealers in the state.
Authored and championed by Assemblymember Cecilia Aguiar-Curry (D-Winters), the bill takes effect January 1, 2024. It will strengthen CA’s franchise laws, creating a fairer and more balanced environment for dealers. It emphasizes accountability and transparency, benefiting all franchised dealer members.
You can read the full request for signature request sent to Governor Newsom outlining details of the bill here. Additionally, we are encouraging all members to attend one of our 2023 New Laws Seminars to learn how to implement these new provisions at your dealership.
AB 473 includes several fundamental tenets:
CNCDA sincerely appreciates all the dealers who supported, called, emailed, and helped us get this across the finish line for a victory on behalf of all franchised dealers statewide. AB 473 passed because of your advocacy and the efforts of CNCDA staff and many others. We also thank Assemblymember Cecilia Aguiar-Curry, whose tremendous support helped lead to the bill’s passage. WE THANK YOU!
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Fairfield Chevrolet – Worked with local Staples to donate School Supplies to Cleo Gordon Elementary
Lithia Subaru of Fresno helps build beds for the Sleep in Heavenly Peace organization
Premier Chevrolet Seaside volunteering regularly with Food Bank for Monterey County
Tustin Toyota hosts a dog adoption event
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
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.
CNCDA is seeking input from dealers for this year’s TIME Dealer of the year candidates. We kindly ask for your nomination of the deserving California-based dealer who exemplifies the qualifications below and should receive this distinguished industry accolade.
Nomination Rules
The deadline to complete and return the nomination form is Monday, July 24, 2023. Email to mmartinez@cncda.org.
All nominations are confidential. Only the nominee chosen will be contacted by CNCDA.
Past Nominees Include:
Tim Hutcherson, Downey Nissan 2023
Terry Gilmore, Paradise Chevrolet Cadillac 2022
David Conant, Norm Reeves Honda Superstore 2021
Paul Rusnak, Rusnak Auto Group 2020
Todd Blue, IndiGO Auto Group 2019
Bill Hatfield, Hatfield Buick GMC 2018
Inder Dosanjh, Chrysler Dodge Jeep Ram Fiat VW Infiniti 2017
John Symes, Symes Automotive Group 2016
R.J. Romero, Empire Nissan 2015
Doug Fuller, Fuller Ford Honda Kia 2014
Rick Niello, The Niello Group 2013
Fritz Hitchcock, Hitchcock Automotive Resources 2012
Walter Kienle, Walter’s Automotive Group 2011
Henry Hansel, Hansel Ford 2010
Ed Fitzpatrick, Valley Lexus 2009
Tim Smith—National Winner, Bob Smith BMW 2008
Bob Hemborg, Hemborg Ford 2007
Chuck Haddad, Haddad Dodge 2006
Dave Wilson, Wilson Automotive 2005
Cal Worthington, Worthington Ford 2004
Harold Meek, Three Way Chevrolet 2003
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
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.
