California 1Q new car sales surge on concern over tariffs

April 15,2025


Tesla sales fall 15%

The California New Car Dealers Assn released their first quarter 2025 report saying new light vehicle registrations increased 8.3% in the first quarter versus 4.6% in the US.

The potential overhaul of US trade policy added significant unknowns to the new vehicle sales outlook, says the reportas sales surged in the months of March and April. It was a strong start in anticipation of trade impacts as shoppers stepped up the pace of purchases apparently concerned over the prospect that tariffs would raise prices soon.

Registrations in the first quarter numbered 463,000 compared to 427,000 in the first quarter of 2024. Light trucks were particularly popular during this time – up 11% over last year. Sales of Asian cars climbed 27.5% while all domestic made cars were up 1.6%.

Tesla loses ground

In other news, Tesla lost ground in the state’s EV market with registrations in the first quarter falling 15% versus the year earlier. All other electric car makes increased by 35%. Tesla’s share of the state electric vehicle market fell from 55.5% in the first quarter compared to 43.9%. in the same period last year. The product lineup was less popular apparently as a backlash against Elon Musk political initiatives that are likely factors for the decline inTesla’s market share ,says the report.

Despite that news, Tesla Model Y retained the top spot as the best selling vehicle in California while F-Ford series full size trucks retained top spot in the full size pick up race. In passenger cars, Tesla Model 3 was tops, followed closely by Toyota Camry and Honda Civic.

The report also discussed electric and hybrid vehicles market share in the state versus internal combustion engine sales. The combined share for all types of alternative electric vehicles was 42.4%in the first quarter up from just 11.6 % in the same period in 2018. Gasoline powered sales amount to 55.4% of all sales in the state so far this year.

Regionally Northern California retail market improved 6.4% in the first quarter compared to 4.1% in Southern California. In the used car market there was a 2.3% increase in the first quarter as sales of Toyota cars dominated the numbers.

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