Texas About To Overtake California As Top Market For New Car Sales

Texas may soon overtake California as the top market for new car and truck sales. The market research firm JD Power found that California’s total market share of new vehicle sales fell to 11.4 percent in the first quarter of 2026, while demand in Texas rose to 10.8 percent of the market.

The shift reflects Texas’ population growth and California’s decline, plus the relocation of both Toyota’s and Tesla’s headquarters from California to Texas. If Texas takes the top spot in new car sales, its drivers will influence automotive trends nationwide.