California new light vehicle registrations increased 6.6 percent during the first six months of this year versus a year ago.But auto dealers expect a different story for the rest of 2025 – projected to decline by about nine percent from the year earlier.
California New Car Dealers Assn says there is” heightened uncertainty” with the new vehicle sales outlook.With increased tariffs likely, this could lead to rising vehicle prices and
at least in the short run, increasing inflation, lower economic growth, and stagnant household disposable income, all negatives for new vehicle sales, they say.
Other reports this week say tariffs on imported cars and auto parts cost General Motors $1.1 billion in the second quarter, the nation’s largest automaker said Tuesday.That
was largely responsible for a 21% drop in net income for the period. The company said it expects tariffs to cost it between $4 billion to $5 billion by year’s end.Imported vehicles to the United States since April 3 now come with a 25% tariff.
Hybrids post big gains; ZEV share continues to slide
Drilling down to the latest numbers in the California autos report, hybrid vehicle registrations in the state increased 54 percent in the first half of this year and accounted for 19.2 percent of the market. ZEV(Zero Emission Vehicles) share in 2Q ‘25 fell to 8.2 percent, but is likely to increase in 3Q as consumers purchase vehicles before federal government incentives expire at the end of September.
Car dealer’s latest report says gasoline powered vehicles accounted for 55.3 percent of state new vehicleregistrations during the first six months of this year.
Internal Combustion Engine market share (including gasoline and diesel vehicles) was 57.5 so far this year,down from 61.7 percent in the first half of 2024 and 88.4 percent in 2018.Combined share for BEVs, PHEVs, hybrids,and fuel cell vehicles was 42.5 percent in the first half of 2025, up from just 11.6 percent in 2018.
Top selling vehicles in the first half year include Honda in small cars, Toyota Camry in the midsize category, Tesla Model Three in the near luxury category and Ford F series in full-size pick-ups. Tesla Model Y and Toyota RAV4 were top sellers.
Top sellers
Tesla as a brand year to date was down 18% in the state through the midyear compared to the same period in 2024. Buick registrations jumped 131% in the first half of the year- tops in the state. But Dodge fell the most – down 59%. Toyota by brand was the top performer in market share with 17.4% followed by Honda with 11% and Tesla with 8.8%.Toyota by brand was the top seller,followed by Honda with 11% and Tesla with 8.8%. Toyota was the most popular car in the used car market.
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