The California New Car Dealers Association (CNCDA) has reported an unexpected 11.6% year-over-year increase in new vehicle registrations for the second quarter of 2023. The association projects that registrations will hit 1.8 million units by the end of the year, surpassing initial predictions for the first quarter of 2022.
CNCDA Chairman, Tony Toohey, highlighted the strong market conditions, stating, “It’s a great time to purchase a new vehicle. We currently have rising inventories on the horizon and are happy to provide information to our customers about newly released traditional and electric vehicle models.”
In terms of electric vehicles, California’s battery electric vehicle (BEV) market share exceeded 21% in the first half of 2023, a significant increase from 16.4% reported for all of 2022. BEVs registered through franchised dealerships saw a growth of 125% in the first half of this year, raising their market share to 32.8%.
Among the industry players, Tesla made a substantial impact, securing the second-highest market share in California at 13.6%, trailing only slightly behind Toyota at 14.7%.
Year-to-date registrations from June 2022 to June 2023, Tesla saw its brand registrations jump 36.7%, behind Genesis, Polestar and Rivian at the top.
Furthermore, Tesla’s Model 3 and Model Y topped the charts in their respective categories. The Model 3 was the best-selling vehicle in the ‘Near Luxury Car’ category, while the Model Y dominated the ‘Luxury Compact SUV’ category.
The Model 3 was the top-selling passenger car at 41,718 registrations, beating the Toyota Camry in second place at 27,169 registrations, while taking 14.9% marketshare in the category. The Model Y was the top-selling light truck with 74,765 registrations, outselling the Toyota RAV4 with 26,032 registrations, taking 11.9% in the category.
While Tesla’s robust market share in California is significant, it diverges from the trends in the rest of the U.S., where Ford leads the market with a 12.2% share, closely followed by Toyota with 12%.
Across California, all regions reported increased registrations for cars and light trucks. The San Francisco Bay Area led with 14.1% of the statewide total, followed by Los Angeles and Orange Counties at 8.9%, and San Diego County at 5.4%.
These positive figures showcase the strong demand for vehicles in California, pointing towards a promising growth trajectory for the auto market into 2024.
