Texas overtakes California as America’s top car market by sales and spending

Texas has officially overtaken California as the largest new-vehicle retail market in the U.S., according to a new JD Power report.

While California’s share of U.S. light-vehicle sales has slipped from 12.5% in 2019 to 11.4% this year, Texas has climbed from 9.3% to 10.8% over the same period. The gap between the two states is now less than one percentage point.

Texas already leads the nation in consumer spending on new vehicles, driven by strong demand for premium pickup trucks.

The trend underscores the Lone Star State’s growing influence in shaping U.S. automotive trends and industry strategy.

Toyota and Tesla’s decisions to base their U.S. headquarters in Texas have further cemented its role as a key hub for automotive decision-making.

Automakers are increasingly tailoring their offerings to Texas buyers, who favor high-margin trucks and SUVs over smaller, more affordable models.

The shift reflects broader changes in American car-buying habits, with Texas emerging as the new bellwether for the industry’s future direction.