In today’s episode of Inside Automotive, Matthew Groves, CEO of the Colorado Automobile Dealers Association (CADA), breaks down the latest Colorado Auto Outlook, discussing the state’s market performance and what lies ahead for dealers.
Groves highlights that Colorado’s new vehicle sales are on track to reach 215,000 units, aligning with pre-pandemic levels last seen in 2017. Despite concerns about interest rates and economic conditions, he notes that dealers have adapted well, maintaining steady growth. However, profitability has dipped slightly due to state-driven purchase incentives, particularly for electric vehicles (EVs).
Colorado has emerged as a leader in EV adoption, thanks to one of the nation’s most aggressive state incentive programs. Groves credits a combination of state tax credits, the Vehicle Exchange Colorado (VXC) Program, and partnerships with Excel for driving EV sales. As a result, EVs accounted for 31.4% of the market in Q4 2024—a record high for the state.
Beyond incentives, Groves highlights that many Colorado residents are environmentally conscious, with past wildfires reinforcing concerns about air quality and emissions. While EV adoption is strongest in urban areas like the Front Range, rural adoption remains slower but is expected to grow.
Groves acknowledges ongoing debates about the future of EV subsidies but maintains that as long as the state prioritizes electrification, dealers will continue selling EVs. Some dealerships have also seen EV sales spill into neighboring states like New Mexico and Wyoming, although the primary market remains within Colorado.
Looking ahead to 2025, CADA will focus on legislative priorities, including protecting dealers from direct-to-consumer sales models that could undermine traditional franchised dealerships. Additionally, affordability remains a concern, with rising new car prices and tariffs potentially impacting consumer purchasing power.
Despite these challenges, Groves remains optimistic about Colorado’s automotive future, emphasizing the resilience of dealers and their ability to adapt to shifting market dynamics.
"We're concerned about the manufacturers trying to compete against our own dealers. We're going to take a stab at it this year and see if we can get something through the legislature that will put an end to that." – Matthew Groves
