The latest new vehicle sales data from California New Car Dealers Association indicates that sales once again exceeded 2 million units for the year. Although slowing 2.2% 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 13.1% of total sales and use tax in the most recent data for the first three quarters of 2017.
• Light truck market share in the quarter was 57.3%, up from 54.0% in Q4 2017, as consumers continue to show a growing preference for this type of vehicle.
• Consumer shifts to light trucks for the US outside California continued to be more pronounced, accounting for 70.6% of new light vehicle sales in this quarter and 68.8% for the year overall. The potential for California’s ZEV policies to be replicated beyond its borders remains low as the market segment targeted by most PEV models—cars—continues to contract as a result of consumer preferences.
• The trend towards light trucks continues in spite of higher fuel prices. The average California price for regular gas in Q4 2018 was $3.70 a gallon, 19.5% higher than the prior year’s $3.13.
