Wildfires in the Los Angeles and San Diego areas, a state-wide vehicle registration fee hike and a gubernatorial recall election contributed to sluggish new light-vehicle retail sales in California in October, according to Power Information Network (PIN) LLC, an affiliate of JD Power and Associates. The information is based on new-vehicle retail sales transactions for the entire month of October.
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Total automotive retail sales in California declined 33.1% from September to October, compared with a decline of 10.7% during the same period in 2002.
The Department of Motor Vehicles began charging California drivers who registered their vehicle on or after Oct. 1 up to three times the amount of the previous fees. The fee amounts to up to 2% of the vehicle’s value. An executive order was signed by Governor Gray Davis in June in an effort to help the revenue-depleted state.
“New-vehicle retail sales in California definitely took a large hit in October,” said Tom Libby, director of industry analysis for PIN. “Registration fees likely had consumers hesitating to buy a new vehicle. The wildfires and recall election also contributed to slower-than-expected sales in Southern California.”
Retail sales for the other 49 states also dropped, but far less than the drop in California. Industry-level retail sales outside of California dropped 14.6% from September to October, compared with an 8.7% decline in 2002.
Among vehicle segments, the luxury vehicle market took the largest hit in California. Luxury vehicle retail sales in California declined 31.8% from September to October, compared with a decline of only 9% over the same period in 2002. Luxury vehicle retail sales in the other 49 states dropped 4% from September to October, compared with a 5% dip in 2002.
Sales volume changes are based on sales volume per selling day within each month. October had 27 selling days – three more than in September.
