California New Car Purchase Rate Drops

The state of California is notable for car manufacturers and companies like EBC Brakes, as it’s the largest automotive market in all of the US’s 50 states, with millions of new cars being bought every year.

The first half of 2019, however, saw the sale of new vehicles in the state drop by 5.6%, which puts the state on track for its annual sales to not hit 2 million, should current conditions not improve, which will be the first time it’d happen since 2014, as explained by the California New Dealers Association.

Association Chairman Ted Nicholas says that this isn’t surprising, given that the past few years have seen an increased number of sales, which means that it’s only natural for the market to go level itself off.

Notably, the state’s drop in new vehicle sales is 1.5% bigger than the rest of the US from the same time period, which is attributed to the state’s new car sales amounting to a larger percent of the overall sales in the state. California saw the sales of new cars, including sedans and compacts, dropping by 10.8% during the year’s first half across its territory, while the sale of new crossover utility vehicles, pickups, SUV’s, and other light trucks dropped by 1.1%

Californians are known for their affinity with cars and trucks, which is why auto manufacturers and companies like EBC Brakes keep an eye on the state. But in recent years, the used car market is seeing increased activity, with the sale of preowned models in the state going up by more than 5% in the first half of 2019.

As for green automotive technology, the state also saw an increase in the electric and hybrid vehicle sales, with the trade group saying that EVs and hybrids account for 13% of all sold new models in California. On top of that, the CNCDA expect that the sale of fully electric vehicles in the state will go past 100,000 before the end of 2019.

A huge factor in the popular of EVs in California is the Tesla Model 3, built in Fremont, not far from San Francisco. Recent data shows that 33,005 Model 3s were bought by Californians, accounting for 1 in every 4 sales of the model in the first half of 2019.