CNCDA: California New-Vehicle Sales Cool in 2016
The California new-vehicle market leveled off in 2016, with new light vehicle registrations increasing by less than 2% during the final three quarters of last year, according to the California New Cars Dealers Association (CNCDA).
SACRAMENTO, Calif. — The California new-vehicle market leveled off in 2016, with new light vehicle registrations increasing by less than 2% during the final three quarters of last year, according to the California New Cars Dealers Association (CNCDA).
Including both retail and fleet sales, California new-vehicle registrations increased 1.6% from 2015 to 2.086 million units, with car sales leading the way with a 57.7% share of the market last year. The share of light truck sales, however, grew 4.6% to 46.9%.
“It’s becoming evident that the robust growth that occurred between 2010 and 2016 is coming to an end,” the association noted in its monthly California Auto Outlook newsletter. “Between 2010 and 2016, the state’s new-vehicle market improved for seven consecutive years and doubled in size, with new-vehicle registrations increasing from 1.04 million units in 2009 to 2.09 million in 2016.”
The slow growth pattern in 2016 was expected and was evidence that the new-vehicle marked was stabilizing, the CNCDA noted. New-vehicle registrations in the state should remain right around the two million-unit mark this year, which is strong on a historical basis, the CNCDA added.
Retail new-vehicle registrations in 2016 were up 1.8% from a year prior, while fleet registrations were up marginally. Retail car registrations declined 7% from the year prior, while light trucks surged 13.9%.
Additionally, new-vehicle registrations in Southern California were up 2.1% from 2015, while Northern California registrations were up 1.6%.
The states used-vehicle market was basically flat last year, the association noted, with registrations declining by less than 1% to 3.53%. The association’s data also showed that the gap between the state’s new and six-year-old used-vehicle markets widened toward the end of 2016.
Additionally, registrations for vehicles in the four- to six-year-old category increased 8.1% in 2016. The seven- to 10-year-old market fell 15.1%, according to the association.
“Toyota was the used-vehicle market share leader in 2016,” the CNCDA stated in its report, adding that Honda’s share in the two-year-old or newer market was 6.6% compared to 10.7% for three- to five-year-old vehicles.
“Honda Civic was the top seller in the state used-vehicle market (only includes vehicles six years older or newer),” the associated stated. “Civic was also the best-selling new vehicle.”
Originally posted on F&I and Showroom
More Dealer Ops

Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
