Pub. 1 2019-2020 Issue 3

28 California Auto Outlook Comprehensive information on the California vehicle market Volume 15, Number 2 Released May 2019 Covering First Quarter 2019 TM Publication Sponsored By: New Vehicle Registrations Should Exceed 1.9 Million Units in 2019 , Despite Mild Decline Historical data source: IHS California Annual New Light Vehicle Registrations — 2008 thru 2019 Source: IHS ANNUAL TRENDS New vehicle registrations in Cal- ifornia exceeded 2 million units between 2015 and 2018. The state’s new vehicle market is predicted to decline 4 percent from 2018 to 2019, which would be the third consecutive annual decline. Although the market is shifting lower, new vehicle registrations are well above average, based on historical standards. California and U.S. Total New Light Vehicle Registrations — YTD thru March TWO YEAR PERSPECTIVE California U.S. YTD '18 YTD '19 Change YTD '18 YTD '19 Change Registrations TOTAL 489,814 463,835 -5.3% 4,119,158 3,999,418 -2.9% Car 227,235 203,846 -10.3% 1,344,674 1,202,397 -10.6% Light Truck 262,579 259,989 -1.0% 2,774,484 2,797,021 0.8% Domestic 143,208 143,650 0.3% 1,818,393 1,783,292 -1.9% European 73,470 70,023 -4.7% 373,452 367,802 -1.5% Japanese 240,697 219,150 -9.0% 1,636,193 1,545,254 -5.6% Korean 32,439 31,012 -4.4% 291,120 303,070 4.1% Market Share Car 46.4 43.9 -2.5 32.6 30.1 -2.5 Light Truck 53.6 56.1 2.5 67.4 69.9 2.5 Domestic 29.2 31.0 1.8 44.1 44.6 0.5 European 15.0 15.1 0.1 9.1 9.2 0.1 Japanese 49.1 47.2 -1.9 39.7 38.6 -1.1 Korean 6.6 6.7 0.1 7.1 7.6 0.5 California new light vehicle market declined 5.3 percent during the first three months of this year, while the U.S. market fell 2.9 percent. Light truck registrations in the state slipped one percent, while passenger cars fell 10.3 percent. Passenger car market share in California was 43.9 percent vs. 30.1 percent in the Nation. QUARTERLY RESULTS 1.40 1.04 1.11 1.22 1.53 1.71 1.85 2.05 2.09 2.05 2.00 1.92 0.0 0.5 1.0 1.5 2.0 2.5 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19* New vehicle regs. (millions) Years California Quarterly New Light Vehicle Registrations Percent Change vs. Year Earlier The California new vehicle market recorded its eighth con- secutive year-over-year decline in the First Quarter of 2019. As shown on the graph, the market is posting mild declines, following several years of big increases. -4.3% -2.8% -1.2% -3.4% -1.1% -3.5% -0.9% -5.3% -20.0% -10.0% 0.0% 10.0% 20.0% 2Q '17 vs. 2Q '16 3Q '17 vs. 3Q '16 4Q '17 vs. 4Q '16 1Q '18 vs. 1Q '17 2Q '18 vs. 2Q '17 3Q '18 vs. 3Q '17 4Q '18 vs. 4Q '17 1Q '19 vs. 1Q '18 % change vs. year earlier *2019 forecast by Auto Outlook. Source: IHS