California’s vehicle market is shaped by consumer choice — not mandates, not manufacturers.
Despite years of top-down pressure to electrify, Californians decide what type of vehicle works best for their daily lives. CNCDA’s most recent Auto Outlook Report shows a growing preference for hybrids and traditional engines over all-electric vehicles. That shift is not a rejection of clean and green technology, but a clear response to infrastructure gaps, range anxiety, limited affordability and flexibility concerns driving customers’ buying decisions.
Franchised dealers remain the most valuable connection between automakers and Californians. When someone walks into a dealership, they’re making one of the most significant financial decisions of their life. They expect real support, honest guidance and a relationship that lasts beyond their purchase. Our members provide trust, continuity and choice. If the state wants long-term EV adoption, it must work with our dealers who know how to serve people, not just sell units. Franchised dealers meet Californians where they are.
Dealers also serve as the essential bridge between manufacturers and customers. It’s a bridge that the OEMs have repeatedly shown they cannot build or maintain on their own. Automakers excel at designing and producing vehicles, but struggle to meet people where they live and solve problems one-on-one. That’s where our dealers shine: on the ground, in the community and with the people who rely on them.
Direct-to-consumer brands continue to fall short, and the results are showing. Time and again, these direct-to-consumer automakers generate buzz but fall short on service, support and trust. Buyers are smart enough to know that flashy tech and online order forms don’t replace dealer relationships built to serve over the long haul. Brands attempting to bypass the franchise system are now facing mounting customer dissatisfaction, declining sales and poor follow-through — not to mention the mounting pressure from CNCDA as we review the legality of these direct sales attempts. The strategic passage of our 2023 franchise bill, AB 473, makes it possible for our association to challenge these manufacturers today.
CNCDA is the reason your dealer protections exist and why your bottom line is stronger today. CNCDA is fighting to ensure our members aren’t boxed out by manufacturer overreach or unrealistic regulatory requirements. We’re leading the charge on SB 791 to modernize the outdated $85 document processing cap, giving dealers the ability to recover state-mandated compliance costs. We’re enforcing the protections we wrote into AB 473 to ensure manufacturers can’t undercut their dealer partners. And we’re pushing back on overreaching regulations (like ACC2) that ignore market realities, and frankly, the everyday, hard-working people of the Golden State.
With your continued membership and support, CNCDA will fight the good fight in Sacramento to ensure policymakers remember who truly puts Californians first: their local franchised dealers.
