All posts by Marty Miller
A closer look at the data shows GM’s losses might not be particularly significant, despite the announcement of discontinued models.
Trivia question: Millennials don’t purchase new vehicles. True or False?
Benjamin Franklin famously said that nothing in life is certain except death and taxes. While that may be true, I think we can add another item to the list — traffic. An unfortunate part of many people’s day, traffic is an inevitable consequence when moving from point A to point B, especially when you consider the sheer volume of vehicles on the road. According to the latest research from Experian, the number of vehicles in operation (VIO) has jumped 5.7 million, going from 265.3 million in Q3 2016 to 271 million in Q3 2017. In fact, more than 17 million new vehicles hit the road in the United States, with just 11.4 million exiting operation. Numbers of that size can be hard to process, so let’s focus on something more relatable. When you’re stuck in traffic, what types of vehicles are inching along at a snail’s pace with you? No matter which state you live in, chances are you’ll see lots of full-size pickup trucks. Why? The top vehicle segment in 42 out of the 50 states is full-size pickups. The only exceptions are Hawaii — which has small pickup trucks as the number one segment — and Rhode Island, New York, New Jersey, Connecticut, Massachusetts, California and Maryland, which prefer midrange standard cars. If you think about it, these exceptions make sense. Residents of the East Coast commuter states and California probably prefer smaller vehicles because they’re more fuel efficient and it’s easier to find parking. But if you talk to a pickup truck owner, you’ll almost certainly hear why trucks are the best vehicle to own. Not surprisingly, full-size pickups aren’t just the top segment in most states; they also make up the largest vehicle segment currently on the road, at 15.3 percent. In terms of top models for full-size pickups, the Ford F-150 and Chevy Silverado 1500 are the top two best-selling trucks nationwide. Overall, Ford and GM still hold the largest market share across all makes and models. Toyota showed the greatest market share growth, going from 12.5 percent in 2016 to 13.6 percent in Q3 2017. For more information about Experian’s most recent VIO data, watch our latest webinar.
Latest results from Experian\'s Market Trends report shows that 17.3 million new vehicles have been added to the U.S. Market of light-duty vehicles on the road.
Experian’s latest Market Trends and Loyalty report shows that for the first time in history, cars with four-cylinder engines have outpaced any other light-duty vehicle type on the road. That’s because the auto industry has been hard at work the past two decades improving both power and fuel efficiency of its engines. Auto manufacturers have been given aggressive fuel efficiency targets (54.5 mpg by 2025), but still need to meet consumer demand for performance. The net result is today’s average four-cylinder engine (188.1 hp) actually has more horsepower than the average V8 from 20 years ago (188 hp). It has helped four-cylinder engines become the most prominent engine type on the road, according to Experian Automotive Vehicles in Operation (VIO) database. Of the vehicles on the road, 37.7 percent are being powered by a four-cylinder engine, compared to 37.6 percent of six-cylinder engines. The top five vehicles at both the VIO and registration levels shows that all but one have four-cylinder engines. Top segments Total VIO Q3 vehicle registrations 1. Full-size pickup 1. Entry-level CUV 2. Standard midrange car 2. Full-size pickup 3. Small economy car 3. Small economy car 4. Lower midrange car 4. Standard midrange car 5. Entry-level CUV 5. Lower midrange car The four-cylinder VIO market share growth will continue in the future. In 2016, for example, four-cylinder engines accounted for 54.2 percent of all engines in new vehicles sold. It is the fifth consecutive year that four-cylinder engines had more than 50 percent market share. Market share for six-cylinder engines has dropped from 32.5 percent in 2012 to 29.7 percent in 2016, while eight-cylinder engines have dropped from 16.1 percent to 12.1 percent.
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