Market to approach 1.9 million units in 2021, an increase of 12 percent from this year, and other key takeaways from Wednesday’s third-quarter California Auto Outlook report
Sacramento, Calif.—The California New Car Dealers Association (CNCDA) released its Auto Outlook: 2020 Q3 report on Wednesday that notes the state’s new vehicle sales are on the rebound for next year. Below are a few additional key takeaways from the report:
• Wildfires and a slowly recovering labor market contributed to the nearly 20 percent decline in the third quarter. However, the market could post a small increase in the fourth quarter.
• New vehicle registrations in California are expected to decline to 1.67 million units in 2020, down 20 percent from last year.
• Latest projections are for the market to approach 1.9 million units in 2021, an increase of 12 percent percent from this year.
• Used vehicle market outperforms new vehicle market during 2020
• Honda Civic and Toyota RAV4 are top sellers in California.
• Toyota, Honda, and Ford are top-three selling brands in the state.
• Toyota, Honda, Ford, Chevrolet, and Nissan were market share leaders in California.
• Accumulating pent up demand and low interest rates will support the market next year, while expected slow improvement in employment should prevent a sharp rebound.
• California new light vehicle market declined 24.6 percent during the first nine months of this year versus a year earlier. The U.S. market fell 18.4 percent.
• Retail vehicle sales in the state have held up better in 2020. New retail registrations fell 19.5 so far this year.
• Light truck registrations in the state declined 17.3 percent versus the 34.4 percent drop for passenger cars.
• Hybrid and electric vehicle market share have moved higher during 2020 (market share – YTD ‘20 thru September:14.3 percent).