SACRAMENTO—The California New Car Dealers Association (CNCDA) announced that second quarter sales dramatically slowed due to production shortages linked to the March 11 Japanese earthquake. The association also attributed the drop to the anticipated lowering of the state sales tax rate on July 1.    

The CNDCA’s report also indicated that new-vehicle registrations increased 19.8 percent in California during the first half of the 2011 compared with the same period last year. 

“Just when we thought we were out of the woods from the recession, the Japanese earthquake and tsunami threw us another curveball,” said Steve Snyder, CNCDA Chairman. “Once Japanese auto manufacturers and part suppliers ramp up production, the second half of the year should be very good.”

The CNCDA’s California Auto Outlook Second Quarter 2011 Market Report features a segment watch that includes the Top 5 models in each segment, a market perspective comparing California nationally, brand scoreboards, a regional recap and other items. The complete report is available at www.cncda.org.