California expected to sell more than two million vehicles this year

As car sales decline throughout the nation, California still on track to stay above national trend

Sacramento, Calif.—California’s new motor vehicle sales are projected to remain stable through the year, with more than two million units expected to be sold in 2017. While the nation experiences an overall decline in sales, California continues to stay above the national decline, selling more than one million new cars through the second quarter.

“As national sales go down, California also sees a slight decline for the first time in years, which is to be expected. As the economy is flattening out after recovering from the Great Recession, our industry is doing the same but California continues to outperform the rest of the country,” said California New Car Dealers Association chairperson, Cheryl Bedford, of Sunset Auto Center in Lompoc. “However, California car buyers have purchased more plug-in hybrids and electric vehicles year to date, increasing market share to 2.1 percent and 2.5 percent.”

For the first time in recent history, light truck sales have surpassed car sales statewide, making up slightly more than 50 percent of the market share in California. However, the national market share of light truck sales is 63 percent, demonstrating distinct market differences among California and the rest of the nation.

Light vehicle sales among northern and southern regions of the state also varied in the second quarter, with a 2.5-percent increase from last year in Northern California and a 2.3-percent decrease in Southern California. The San Francisco Bay Area in particular experienced a 1.9-percent increase, demonstrating the consistent healthy economy of the region.

While California and the nation continue to move forward on climate change policies specific to greenhouse gas emissions, it’s important to note that used vehicles more than 10 years old experienced a notable increase of more than 3 percent from 2016, climbing to 53.3 percent, demonstrating that consumers are holding onto older cars longer.chised new car dealers sold more than 2.5 million new and used cars and trucks.

Parts & People

Parts & People is published monthly by Automotive Counseling and Publishing Company, Inc., a Colorado corporation, P.O. Box 18731 Denver, CO 80203, 303-765-4664. President-Lance Buchner. Founded by Lance Buchner and Dave Lucia.