Tag: automotive
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A Glimpse in the Rear View Mirror: The Automotive Market in 2014
Just as looking in the rear view mirror can help you navigate your next move, looking into recent trends can serve as a guide to where the industry should head in the future.
With that in mind, let’s take a step back and look at some of the trends in the automotive industry that finished off 2014. After all, it’s the insights from these trends that enable dealers, manufacturers, aftermarket retailers and lenders to take the right action to uncover growth opportunities and improve profitability.
As we look at Experian Automotive’s 2014 Market Share and Registration Trends analysis, we see that the volume of new and used vehicle sales continued to increase year-over-year to reach 16.3 million and 39.3 million, respectively. However, despite the volume increases, the growth rate for both types of sales has slowed considerably.
The growth rate of new vehicle sales slowed to 6.6 percent, while the growth rate for used vehicle sales actually decreased to 1.8 percent from 1.9 percent a year ago.
Findings from the analysis also showed that entry-level cross-over utility vehicles and full-sized pickup trucks remained the top two new registered vehicle segments, while alternative-powered vehicles fell out of the top ten. Among new entrants into the top ten was the upscale-near luxury vehicle segment, which includes such cars as the BMW 3-Series, Mercedes-Benz C Class and the Lexus ES350
Other findings from the analysis include:
- The total number of vehicles on the road increased by 5 million from a year ago to reach 251.1 million
- More than 92 million vehicles on the road fell within the aftermarket “sweet spot,” model years 2003-2009. Analysis also shows the sweet spot shifting toward a higher share of import vehicles.
- Ford F150, Chevrolet Silverado/1500 and Honda Accord were the top three vehicle models of all vehicles on the road at the end of 2014
- Ford (20.6 percent), International (16.9 percent) and Freightliner (15.8 percent) were top three manufacturers of medium- and heavy-duty vehicles in terms market share of all vehicles on the road
- General Motors had the highest market share of new vehicle sales in the South and Midwest, while Toyota led the way in the Northeast and West
Fast forward three months into 2015, the automotive industry seems to be picking up right where it left off last year – clicking on all cylinders.
It will be important to keep an eye on how these trends fluctuate through the rest of the year, as those insights can help the industry navigate and adapt to situations that may arise.
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Are You Loyal or a Defector? An Overview of Consumer Vehicle Replacement Preferences
Just how loyal are consumers to a particular make or model of vehicle?
A new Experian Automotive study answers this question by highlighting the loyalty behavior of consumers who got rid of their previous vehicle to purchase a new one.
The analysis showed that, overall, Ford owners had the highest percentage of loyalty when returning to market, with 60.8 percent purchasing another Ford vehicle. Rounding out the top five makes with the highest percentages of loyal consumers were Toyota, Subaru, Kia and Lexus, with 59.1 percent, 57.7 percent, 57.2 percent and 55.9 percent returning to buy another vehicle of the same make.
“Vehicle loyalty is an important industry metric because it tells automakers how successful their vehicles are with the general public,” said Brad Smith, Director of Automotive Market Statistics for Experian Automotive. “When analyzing loyalty, Experian Automotive uses disposal methodology, meaning we track when a consumer replaces a vehicle that he or she originally purchased new with another new vehicle.
This approach creates a more direct correlation between a purchased and owned vehicle to provide automakers and dealers with insights that can become actionable with regard to production volumes, design changes or sales incentives.”
The analysis also looked at the loyalty rates of some of the most popular vehicle segments on the road, including entry-level CUVs, full-sized pickups and small economy cars.
The models with the most loyal consumers in each category include the Honda CR-V, the Ford F-150 and the Toyota Corolla, with 41.6 percent, 45.0 percent and 30.4 percent of their drivers returning to buy another vehicle of the same make and model.
For more information about Experian insights into the automotive market, please visit ExperianAutomotive.com.
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Car buyers choose fuel-efficiency
If you’ve driven a vehicle in the past few months, then you’ve most likely had to stop by your local gas station. And, if you’ve filled up the tank while you were there, then you’ve probably experienced the sensation of the corners of your mouth forming a smile as the price for a tank of gas of has been lower than usual for quite some time.
With that said, has the consistent drop in gas prices done more than just make us smile? Has it enticed consumers to go back to the gas-guzzling, high-powered vehicles of the past?
According to a recent Experian Automotive analysis, the answer is no. Despite the drop in gas prices, fuel-efficiency remains top of mind for most consumers. So much in fact, that more than 55 percent of all new vehicle sales through the third quarter of 2014 had four-cylinder engines. The next closest engine type was the six-cylinder, which made up nearly 30 percent of all new sales. What’s intriguing is that this gap has continued to widen since 2008.
To download the full report: http://ex.pn/1x0r5q5
Furthermore, vehicles with four-cylinder engines made up 35 percent of all vehicles on the road, compared with six-cylinder engines, which made up 39.2 percent. While the more powerful engine has a larger share of vehicles on the road, the gap between the two has steadily decrease since 2009, when six-cylinder engines made up 41.4 percent, and four-cylinder engines made up only 29.9 percent.
Other findings from the report include:
• The total number of vehicles on the road grew by 5.8 million from a year ago, mainly due to an increase in new vehicle sales and low scrappage rates
• More than 26 percent of all light duty vehicles on the road are model year 2010 or newer
• The average age of vehicles on the road (15-year rolling age) is 7.4, down from 7.5 in the third quarter of 2013
• The Southern region saw the highest volume of new and used vehicle sales in the third quarter of 2014, followed by the Midwest, West and Northeast
• Entry-level CUVs (cross-over utility vehicles) remained the top vehicle segment among new registrations through Q3 2014, while full-sized pickup trucks reclaimed the second spot after trailing small-economy cars through the first half of the year
• Ford, Chevrolet and Toyota were the top three brands for new vehicles sales in the third quarter of 2014
• Ford (20.7 percent), International (17.1 percent) and Freightliner (15.8 percent) have the highest share of medium- and heavy-duty vehicles on the road -
New sales for alternative-powered vehicles dip for first time since first half of 2009
Over the last few years, there has been a plethora of attention around hybrid and electric vehicles, from both consumers and media alike. Whether it’s due to the fact that consumers have become more environmentally conscience, or that fuel economy standards have begun to take shape, alternative-powered vehicles have steadily risen in popularity. But as the rest of the automotive industry continues to develop more fuel-efficient vehicles, can we expect this “green” car segment to keep growing?
Register for quarterly updates: http://ex.pn/1AzlzXB
According to Experian Automotive’s most recent report looking at automotive market share and registration trends, the answer appears to be that the segment’s growth has hit a wall. In the first half of 2014, new sales for alternative-powered vehicles decreased by 3.6 percent from the previous year. This marks the first time that “green” cars have experienced a regression in new sales since the recession in 2009.
“Despite arguably being the most talked about vehicle segment in recent memory, we’re beginning to see new sales of alternative-powered vehicles come down slightly,” said Brad Smith, director for Experian Automotive. “While the reduction could be caused by any number of reasons, we have to keep in mind that there have been significant improvements in gas mileage across all car segments. This combined with the fact that smaller economy vehicles are typically several thousand dollars less than alternative-powered vehicles, consumers are able to get similar car value for their money.”
Findings from the report also showed that entry-level CUVs took over the top spot as the number one vehicle segment among new registrations in the first half of the year. Small economy cars rose to the second spot, while full-sized pickup trucks, which was the top vehicle segment in the first half of 2013 fell to number three on the list.
Additionally, the top five CUV models in the first half of 2014 were the Honda CR-V, Ford Escape, Chevrolet Equinox, Toyota RAV4 and Nissan Rogue. The top five small economy car models during the same time period were Toyota Corolla, Chevrolet Cruze, Ford Focus, Hyundai Elantra and Nissan Sentra.
Other findings from the report include:
• Total vehicles in operation in the second quarter of 2014 reached 249.4 million, an increase of 1.5 million vehicles from a year ago
• The average age of vehicles (rolling average of current 15 model year vehicles) decreased to 7.6 years in Q2 2014 from 7.7 years in Q2 2013
• Ford, International and Freightliner were the top three vehicle makes for medium and heavy duty vehicles on the road in Q2 2014
• In Q2 2014, 82.2% of all medium and heavy duty vehicles were powered by diesel fuel
• All regions saw a decrease in used vehicle registrations in the first half of 2014, with the exception of the northeast, which saw a 1.8 percent improvement
• Ford F-150, Toyota Camry and Honda Accord were the top 3 vehicle models in the first half of 2014 -
Consumers purchasing an electric vehicle are younger and more affluent than those buying a hybrid [INFOGRAPHIC]
In honor of Earth Day, Experian Automotive released findings from an analysis comparing electric and hybrid* vehicles. Findings from the analysis showed that in 2013, more than 45 percent of hybrid car buyers were 56 years old or older, while roughly 26 percent of electric car buyers were of the same age. The greater percentage (55 percent) of electric buyers were between the ages of 36 years old and 55 years old. Additionally, nearly 21 percent of consumers purchasing an electric car had an average household income of $175,000 or more. Conversely, only 12 percent of consumers purchasing a hybrid had an average household income of the same level.
*For this analysis, hybrid vehicles were defined as any vehicle with multiple power alternatives.
To view the full infographic, visit http://ex.pn/1k4a0BT
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A year in review: A look back at 2013 automotive market trends
Over the years, one of the lessons that I’ve learned is, to prepare for the future you must understand the past. The same lesson can and should be applied to the automotive industry. As manufacturers, aftermarket companies and retailers continue to move their businesses into 2014 and beyond, it is always beneficial to take a moment and assess what happened in years past.
For example, according to Experian Automotive’s Quarterly Report: A look back at the 2013 automotive market share trends, the overall automotive market decreased slightly, with approximately 900,000 vehicles taken off the road from a year ago. Additionally, there were 98 million vehicles within the aftermarket “sweet spot” (vehicles between model years 2002-2008), which means a good number of opportunities (vehicles out of warranty) are available for aftermarket companies. However, with a shortage of model year 2009 vehicles due to low sales volumes, we can expect this number to decrease next year.
Register for quarterly updates: http://ex.pn/1lTNnTw
Findings from the report also showed that total vehicle sales were up in 2013, increasing by nearly 3 percent from a year ago. Furthermore, new vehicles sales continued to increase its share of total sales, reaching 28 percent of vehicles registered in 2013, up 6 percent from last year.
From a regional perspective, while all regions saw an increase in vehicles sales compared to last year, the Western region experienced the strongest growth, improving by more than 4 percent. Both the Southern and Northeast regions saw a 2.6 percent growth rate in sales, while the Midwest saw a 2.3 percent improvement.
Additionally, General Motors emerged as the manufacturer of choice when it came to new vehicle purchases in the Midwest and Southern regions, while Toyota was the top manufacturer in the Western and Northeast areas.
Other findings from the report include:
• The top three states for hybrid vehicles were California (7.9 percent of all state registrations), Oregon (7 percent of all state registrations) and District of Columbia (6.9 percent of all state registrations)
• Top five vehicle segments in the United States made up nearly 50 percent of all vehicles on the road in 2013
• In 2013, the average age of vehicles on the road was 10.4 years, remaining flat from last year
• General Motors had the highest market share in 2013 at 17.9 percent, followed by Ford (15.6 percent) and Toyota (14.4 percent)
• The Midwest was the only region to have domestic brands make up a larger percentage of its new vehicle registrations (62 percent); South (48 percent); Northeast (39.5 percent); West (38.4 percent) -
What’s the rest of your generation driving?
Experian’s State of Credit report recently highlighted the credit savviness of four generational groups, and showed how differently they manage their financial obligations. As you’d expect, there were several intriguing findings, so we extended the research to see how these same generational groups would differ when it comes to buying a vehicle.
In a recent analysis of market trends in the automotive industry, Experian Automotive looked at vehicle registrations, and examined the car buying habits of Millennials (up to 32 years old), Generation X (33-48 years old), Baby Boomers (49-67 years old) and the Silent Generation (68-85 years old).
Interestingly, Millennials and Generation X had similar taste in the new vehicles they purchased, differing only in order of preference. The Honda Civic, Ford F-150, Honda Accord, Toyota Camry and Chevrolet Silverado 1500 made up the top five for Millennials, while the Generation X list consisted of the Ford F-150, Honda Accord, Chevrolet Silverado 1500, Toyota Camry and Honda Civic.
Baby Boomers shared a similarity with Generation X, as the F-150 was also their vehicle of choice. The rest of the top five new vehicles for Baby Boomers were the Chevrolet Silverado 1500, Honda Accord, Toyota Camry and Honda CR-V. The top five for the Silent Generation consisted of the Toyota Camry, Ford F-150, Honda Escape, Honda Accord and Hyundai Sonata.
Other findings from the analysis included:
• Twenty-five percent of new vehicles financed by the Silent Generation were leases
• Generation X and Baby Boomers purchased vehicles with the highest average values in the quarter, $29,494 and $28,764, respectively
• Baby Boomers purchased the highest percentage of Hybrid vehicles (47 percent), while Millennials purchased the lowest (9 percent)
• Baby Boomers purchased the highest percentage of new import vehicles and new domestic vehicles at 42.5 percent and 43.2 percent, respectively -
Top five models show Northeast and Midwest on opposite ends of the new vehicle spectrum
Grab a pen and paper. Jot down some differences between the Northeast and Midwest. What came to mind? Maybe it was the bright city lights of the Northeast versus the Midwest’s starlit farms? Or maybe it’s the city’s busy streets compared to quiet open fields? What you may or may not have written down is that Northeasterners prefer to drive more import vehicles than the folks in the Midwest.
According to Experian Automotive’s mid-year review of automotive market trends, in the first half of 2013, the top five new vehicle models in the Northeast region were all import brands. Conversely, as one might have guessed, American-made vehicles dominated the Midwestern roads. In the Northeast, the list was made up of the Honda Accord, Honda CR-V, Toyota Camry, Honda Civic and Nissan Altima. Out in the Midwest, Ford vehicles made up four of the top five and the Chevrolet Silverado 1500 filled out the list. The top five in order included the F-150, Fusion, Escape, Silverado 1500 and the Focus.
In the West, the list was more closely aligned with Northeast, as import vehicles made up four of the five, with the Ford F-150 being the only domestic brand. The list included the Honda Civic, Toyota Camry, Honda Accord, F-150 and Toyota Corolla.
The South was a mixture of both import and domestic with the Ford F150, Toyota Camry, Nissan Altima, Chevrolet Silverado 1500 and the Toyota Corolla making up the top five.
Other highlights from the analysis included:
• Full-sized pickup trucks were the most popular vehicle segment in the first half of 2013, making up almost 15 percent of the vehicles on the road
• In Q2 2013, Buick and Volvo were the top brands with the longest average length of ownership at 98 and 92 months, respectively
• General Motors (26.6 percent), Ford (18.9 percent) and Toyota (12.6 percent) were top three in vehicle market share for first half of 2013For more information on this analysis, or to view a recorded webinar of the findings, please visit https://www.experian.com/automotive.
