Electric & hybrid sales gain market share
-December 16,2021-
SACRAMENTO, CA – While demand for vehicles continues to increase to pre-pandemic levels, supply bottlenecks are preventing a full recovery says the California new Car Dealer Associations Third Quarter report.
Earlier estimates hoped for a slightly stronger recovery, with new vehicle sales expected to approach 2 million for the year. The ongoing microchip issue has led to a more bearish outlook, trimming expectations closer to 1.85 million for this year. Despite the slightly leaner estimation, sales are still expected to surpass 2020 numbers by nearly 13 percent.
“The impacts of the ongoing microchip shortage certainly can’t be ignored, but California’s new car dealers are working tirelessly to ensure that the needs of our motoring public are met,” said California New Car Dealers Association Chairperson, Mark Normandin, owner of Normandin Chrysler Jeep Dodge Ram FIAT. “Despite this challenge, with patience from consumers, the nature of California’s competitive automotive marketplace has allowed our industry to continue providing the vehicles sought by buyers, with the same quality of service they have come to expect.”
Major Trends at a Glance
Truck of the Year by Motor Trend. Company based in Irvine.
Electric vehicles continued their strong emergence, as consumer demand increases alongside new models entering the market. This week’s LA Auto Show highlighted this growing market, with automakers unveiling an assortment of new electric vehicles in their model lineups.
Hybrid and electric sales have expanded to nearly 22 percent of the market share.
Manufacturers are racing to establish themselves with their consumer bases, as more buyers look towards electrification. This comes as EVs increased their market share in Q3 to 8.3 percent, a full 2 percent over 2020.
Along with EVs, hybrids also showed a strong presence continuing their longtime growth, now commanding 10.3 percent of the market, and plug-in hybrids joined the trend, increasing to 3.3 percent in total sales. Altogether, hybrid and electric sales have expanded to nearly 22 percent of the market share.
The LA Auto Show unveilings also mimicked another growing trend among consumers, the continued desire for SUVs. In the first three quarters of 2021, nonluxury SUVs made of 34 percent of all new vehicle sales, with pickups and vans a distant second at 17 percent.
Despite sales bottlenecks, the new vehicle market continued its strong recovery from last year. As consumer demand remains low for many products, car buyers are returning to dealerships eagerly
searching for their next vehicle. Yet, while demand shows a major comeback, the reality of the COVID pandemic remains, with exterior factors continuing to impact global supply chains.