California auto sales down 5.5% in 2019
Long term slump likely to worsen
California’s new light vehicles market declined 5.5% in 2019 says the California New Car Dealers Association in a report released in late February. This is the 11th consecutive year over year decline. In the fourth quarter the drop accelerated to 7% says the market report.
The drop saw automobile sales decline by 12.2% in California while small truck registrations were unchanged. Passenger car registrations in the state have sputtered one third between 2015 to 2019. Light trucks now outsell cars in the state with 962,435 registrations vs 700,916 new car sales in 2019.
With the slowdown accelerating in early 2020, in part due to fear of the corona virus, Moodys just predicted a further decline this quarter both worldwide and in the US.
The rating agency says “The new forecast projects sales declines of 2.9% in China, 4% in Western Europe and 1.2% for the U.S. Moody’s new forecast assumes the outbreak is contained by the end of the first quarter, “allowing for the resumption of normal economic activity in second quarter,” according to Moody’s.
Moody’s, which forecasts global GDP growth of 2.4% in 2020, said its outlook for the automotive industry “remains negative.” Global vehicle sales dropped 4.6% in 2019, according to the firm.”
Hybrid/electric up
Meanwhile back in California, the dealers report that the hybrid electric market share in 2019 was 13.2% of all vehicles.It was 12% in 2018. Over 100,000 hybrids were registered in 2019 and 99,000 electric vehicles – both higher than 2018. Plug-in hybrids fell from 63,000 in 2018 to 46,000. The share of electric vehicles sold in 2019 was 5.3% vs 4.7% in 2018.
If consumers are choosing fewer new vehicles they are buying 2.5% more used vesicles says the report.Honda Civic was the top seller in the category of 6 year old vehicles.But Toyota was the top brand overall.
caption: 2020 estimate by California New Car Dealers was made before corona virus impact