In California, sales of new cars drop more than 5%

If you bought a new car in California this year, you were among a smaller group of car buyers than a year ago.

According to a new report from the California New Car Dealers Association (CNCDA) trade group, new-vehicle sales across the state during the first half of this year fell by 5.6% from the same period in 2018. The group said that light truck sales slipped by 1.1%, while sales of new cars plunged by 10.8% during the first six months of 2019.

The CNCDA also said California was on track for new-vehicle sales to fall 4.6% for the entire year, and that total new-vehicle sales are expected to drop below 2 million units by the end of 2019.

However, CNCDA Chairman Ted Nicholas said that the sales decline isn’t completely unexpected, and that sales continue to remain above historical levels for the new-car industry.

“It is not a huge surprise that after years of increased sales, we are seeing the market level off, reflecting the broader economic and political climates,” Nicholas said.

With regards to specific areas of California, the CNCDA said that new vehicle sales in Northern California dropped by 5.4%, and such sales declined by 5.9% in Southern California from the first six months of 2018.

The CNCDA said that while overall new-vehicle sales are waning, sales of new electric and hybrid cars continue to increase — gaining more overall market share among California’s new-car buyers.

According to the CNCDA,

sales of new electric and hybrid vehicles are expected to surpass 100,000 units this year. Electric cars are expected to account

for 5.6 percent of California’s new-vehicle sales this year, and hybrid vehicles are expected to make up 5.2 percent of all new vehicles sold in the state by the end of 2019. Contact Rex Crum at 408-278-3415.