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California dealers are responsible for gaining BEV sales in Q1

Direct EV sales were often pictured as the future of the automotive industry, compared to sales by franchised dealerships. 

The latest EV report regarding car sales in California surrounds data on sales by franchised and direct dealers. 

Direct EV sales were often pictured as the future of the automotive industry, compared to sales by franchised dealerships. 

However, California’s New Car Dealers Association (CNCDA) report for Q1 2023 based on Experian Automotive’s numbers shows that dealers’ BEV sales expand quicker than direct sellers and gain market share.

As opposed to fewer than one-fifth in Q1 2022, dealers sold approximately one-third of all new BEVs registered in California in the first quarter of 2023. Comparatively, the volume climbed by 140%.

  • Franchised dealerships saw a 32.9% share vs. 19% a year prior. 
    • Registrations increased by 140% year-over-year.
  • Direct Sellers saw a 67.1% share vs. 81.0% in 2022. 
    • Registrations increased by 15% year-over-year

According to the study, Tesla registered 53,141 more vehicles than the previous year, an increase of 10.6%. Yet, the substantially slower growth rate explains how  Lucid and Rivian are minor players. To attain a higher growth rate more easily, dealers also expand their sales from a smaller base.

Dealers are embracing BEVs as more well-known companies start offering all EVs. The irony is that they are demonstrating their expertise, yet in the past many people blamed dealers for the failure of BEV sales.

Ultimately, it suggests that franchised dealerships are attempting to regain market share in the BEV sector, which until recently was dominated by direct sales.  

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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