May 22, 2019
The latest new vehicle sales data from California New Car Dealers Association indicates that sales are now projected to be above 1.9 million units for the year. Although slowing 4% from the prior year, this indicator reflects the level of overall consumer confidence and continuing strength of the recovery. New vehicle sales are also a critical indicator of state and local revenues, with Motor Vehicle and Parts Dealers (NAICS 441) producing 13% of total taxable sales in the most recent data for the first quarter in 2018.
• Light truck market share in the quarter was down marginally to 56.1%, compared to 57.3% in Q4 2018 and 53.6% in Q1 2018.
• Consumer shifts to light trucks for the US outside California similarly showed only a marginal change, accounting for 69.9% of new light vehicle sales. The potential for California’s ZEV policies to be replicated beyond its borders remains low as the market segment targeted by most Plug-in Electric Vehicle (PEV) models—cars—continues to remain low as a result of consumer preferences.
• The average California price for regular gas in Q1 2019 was $3.34 a gallon, the same as the year prior.