15. April 2026

California Leads the Way in New Light Vehicle Sales

In May of 2025, a Congressional Review Act removed the authority of the California Air Resources Board to enforce a mandate that 35% of all vehicle sales in the state be zero-emission vehicles in the 2026 model year. President Trump signed it into law in June.
In 2025, there were 1.81 million new light vehicle registrations in California, up 3.3% compared to the previous year, according to the California New Car Dealers Association. That made it the largest market in the U.S by sales.
According to Kerrigan Advisors’ The Blue Sky Report 2025 Annual Report, the state is also the largest auto retail market in the U.S. by revenue at $157 billion, 12% of the national market share.

“California is the largest market in the country by a significant factor,” Kerrigan said.... "the car-culture state represents the largest auto retail market in the U.S. with concentrated high-income populations who represent the largest retail spend (particularly in luxury) of any market in the U.S.,” the report said.