THE SUV SEGMENT OUTLOOK STUDYF E B R U A R Y 2 0 1 9
Has the SUV Market Peaked?
Are there indications of SUVs peaking?
The SUV Market Does Not Appear to Be Peaking in the Short Term….However, There are Signs of Saturation
Source: OEM Press Release Sales Data
Are there indications of SUV Saturation?
Days supply increasing
Average ATP increasing
Increased competition from used market
More SUV launches
Sales - 6.5+ million units and forecasted to grow
Consideration - highest
4x as many SUVs from 30 years ago
SUV Sales have grown 16% in the last 2 years. 6.5+ million units were sold in 2018
Utility Sales Overtook Car Sales in 2016 and is Now the Most Popular Segment
Source: OEM Press Release Data. Sales for all segments (non-lux)
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Car SUV Truck Van
Segment 2015 2025
COMPACT SUV 20% 29%
MID-SIZE SUV 16% 18%
COMPACT CAR 16% 13%
MID-SIZE CAR 20% 13%
MID-SIZE TRUCK 3% 4%
FULL-SIZE TRUCK 12% 14%
Source: IHS Markit, U.S. Automotive Sales Forecast April 2018
SUV Segment Shares Forecasted to Grow
Consideration for SUVs Has Been Trending Upwards
Source: KBB.com Brand WatchPlease select at most 5 vehicles that you are currently shopping.
40%
45%
50%
55%
60%
65%
70%
2013 2014 2015 2016 2017 2018
TRENDED SUV CONSIDERATION
Non-luxury Utility Vehicles Luxury Utility Vehicles
56%
40%
21%
18%
17%
9%
6%
4%
SEGMENT CONSIDERATION
Non-Luxury Utility Vehicle
Non-Luxury Sedan
Luxury Utility Vehicle
Luxury Sedan
Pickup
Non-Luxury Coupe
Minivan
Luxury Coupe
The Number of SUV Offerings Has Dramatically Increased in the Past 30 Years
Source: KBB.com Buildout Table
Consumers now have more SUV choices than they ever had before, especially in the smaller sizes that consumer really want.
NEW SUBCOMPACT SUV SEGMENT CREATED
0
50
100
150
200
250
# o
f V
ehic
les
# OF VEHICLES
There are now 4 times as many SUVs as there were 30 years ago.
Even though there are more cars today, the segment has only grown by 20% since 1990.
Data includes both luxury and nonluxury vehicles.
SEGMENT 1990 1998 2008 2018
Subcompact SUV 13
Compact SUV 10 10 20 18
Mid-size SUV 5 15 28 23
Fullsize SUV 7 6 11 8
Luxury Compact SUV 4 26
Luxury Mid-size SUV 3 16 23
Luxury Fullsize SUV 2 5 13 11
Grand Total 24 39 92 122
Model Count
1990 1998 2008 2018
CARS 168 141 186 202
SUVS 24 39 92 122
Growth May Be at Risk with the Current Days Supply for SUVs…
Source: Autodata Days’ Supply, United States Bureau of Economic Analysis New Lt. Vehicle SAAR 88
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
25
35
45
55
65
75
85
95
105
Jan
-10
Ap
r-1
0
Jul-
10
Oct
-10
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
Jan
-17
Ap
r-1
7
Jul-
17
Oct
-17
Jan
-18
Ap
r-1
8
Jul-
18
Oct
-18
Jan
-19
SAA
R (
mill
ion
s)
Day
s Su
pp
ly
New Vehicle SAAR Days Supply - Industry Days Supply - Cars Days Supply - Light Trucks
Average Transaction Price Continues To Rise
Source: Dealer Retail Transaction Data
$39,805
$47,400
$33,376
$38,187
$26,342
$28,920
$24,716
$26,042$25,491
$24,698
$20,175 $20,825
2012 2013 2014 2015 2016 2017 2018
YoY ATP INCREASE/DECREASE
SEGMENT % CHG
Full-size Pickup Truck +19%
Midsize-SUV/Crossover +14%
Compact SUV/Crossover +10%
Mid-size Car +5%
Subcompact SUV/Crossover -3%
Compact Car +3%
With Increased Days Supply and Rising Interest Rates, Affordability is Affected and May Impact SUV Sales
Source: Federal Reserve, Bankrate.com, Bloomberg
0
1
2
3
4
5
6
7
8
9
%
Interest Rates
New Auto 60 Mo New Auto 48 Mo Used Auto 36 Mo US 10 Year Treasury Fed Discount Rate
SUVs Continues Its Rise…But Will Face More Nearly-New Competition
Source: Motor Intelligence/Autodata new sales by segment, IHS Market registrations, Cox Automotive analysis 1111
0%
10%
20%
30%
40%
50%
60%
2016 2017 2018 2019 2020
Car CUV SUV Pickup Van
0%
10%
20%
30%
40%
50%
60%
Jan
-09
Jul-
09
Jan
-10
Jul-
10
Jan
-11
Jul-
11
Jan
-12
Jul-
12
Jan
-13
Jul-
13
Jan
-14
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Jul-
17
Jan
-18
Jul-
18
SHARE OF NEW LIGHT VEHICLE SALES
CUV Car Van SUV Pickup
OFF-LEASE MATURITIES SEGMENT SHARE
A Surplus of SUVs May Increase Incentive Spend
Source: Dealer Retail Transaction data (ATP), Motor Intelligence (Incentives)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1/1/
20
17
2/1
/201
7
3/1
/201
7
4/1
/201
7
5/1
/201
7
6/1
/201
7
7/1
/201
7
8/1
/201
7
9/1
/201
7
10
/1/2
017
11
/1/2
017
12
/1/2
017
1/1
/201
8
2/1
/201
8
3/1
/201
8
4/1
/201
8
5/1
/201
8
6/1
/201
8
7/1
/201
8
8/1
/201
8
9/1
/201
8
10
/1/2
018
Ince
nti
ves
Spen
d a
s %
of
ATP
Cars Industry SUVs
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1/1
/20
17
2/1
/20
17
3/1
/20
17
4/1
/20
17
5/1
/20
17
6/1
/20
17
7/1
/20
17
8/1
/20
17
9/1
/20
17
10
/1/2
01
7
11
/1/2
01
7
12
/1/2
01
7
1/1
/20
18
2/1
/20
18
3/1
/20
18
4/1
/20
18
5/1
/20
18
6/1
/20
18
7/1
/20
18
8/1
/20
18
9/1
/20
18
10
/1/2
01
8
Ince
nti
ve S
pen
d a
s %
of
ATP
Subcompact SUV/Crossover Compact SUV/Crossover
Industry Mid-size SUV/Crossover
Full-Size SUV/Crossover
SUV incentives are on the rise
Small SUVs have higher incentives
Bank of America Merrill Lynch Car Wars 2019-2022
And More are Expected to Hit the Market…Which Can Potentially Saturate the Market
0
10
20
30
40
50
60
70
801
99
9
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
Nu
mb
er o
f N
ew M
od
els
Lau
nch
es
NEW MODEL LAUNCHES 43% of new vehicles in 2019-2022 are
projected to be SUVs
Why Are Shoppers Choosing SUVs?
46%42%
38%
33%30%
24%
19%15%
10% 9%
5%
55%
42%
56%
38%
30%
23%
13%
21%24%
11%
4%
More utility/cargo
capacity
Ease of getting in and out of the vehicle
Increased interior space
High vantage point (e.g. can see over other
traffic)
Safety advantages
Many new appealing SUV models on the
market
Comparable MPG/fuel economy
More rugged Flexible seating configuration
Competitively priced
Gas prices have been low
WHY ARE YOU TRADING IN YOUR CURRENT VEHICLE FOR AN SUV?
Compact SUV Midsize SUV
People Are Trading In Their Cars For More Space and Ingress/Egress
Source: KBB.com Compact SUV Survey and Mid-Size SUV Survey, 2018Q: Why are you trading in your current vehicle for an SUV? (Compact SUV N=344)
Q: Why are you trading in your current vehicle for an SUV? (Midsize SUV N=142)
Utility and Safety Features are Important to SUV Shoppers
Source: KBB.com Compact SUV Survey and Mid-Size SUV Survey, 2018Please select up to 5 features that your next Compact/Midsize SUV must have in order for you to purchase it N=1320, N=835
51% 51%
37%
26%24%
22%19%
17% 16% 16%
56%
50%
36%
28%
22% 22%19% 19% 19%
14%
AWD or 4WD Backup camera Bluetooth Heated/cooledseats
Blind spotmonitors
Automaticheadlights
Electronicstability control
Collisionavoidance
system
Collisionwarning alert
system
Leather seats
TOP 10 MUST HAVE FEATURES
Compact SUV Midsize SUV
19% 35% 37% 19% 18% 21% 16% 13% 12% 15%Compared to Non-Lux Car Norms
Reliability/Safety, Affordability, and Reputation are Essential to SUV Shoppers
Source: Compact SUV Survey and Mid-Size SUV Survey, 2018Q: Which of the following factors is the MOST important to you when considering a compact/midsize SUV? (N=1320; N=835)
Top 10 Most Important Factors When Considering Compact SUV & Mid Size SUV
Reliability
Best value for my budget
Safety ratings
Driving comfort
Good experience with vehicle's brand
Fuel Economy
Driving performance
Reviews/ratings/awards
Good experience with past model
Maintenance costs
SUV Shoppers Are Replacing an SUV or Adding an SUV to the Household Fleet
Source: Compact SUV Survey and Mid-Size SUV Survey, 2018Q: Regarding your next SUV purchase, what type of vehicle are you trading in for it? (Select all that apply.) (N=835)
Q: Regarding your next SUV purchase, what type of vehicle are you trading in for it? (Select all that apply.) (N=1320)
41%
19%
2% 3% 2%5%
28%
48%
13%
4% 3% 3% 1%
29%
SUV/CUV Sedan Truck Coupe Van/Minivan Hatchback/Wagon NA, I'm not trading in avehicle
TRADE IN VEHICLE FOR THE NEXT SUV PURCHASE
Compact SUV Mid-size SUV
Compact SUV Owners are Looking to Upgrade as 32% are Looking to Defect to a Mid-Size SUV Based on KBB.com Traffic
Source: KBB.com Traffic, Q2 2018Read as: Compact SUV shoppers are cross shopping Mid-Size SUVs at the rate of 15% and Compact SUV is defecting to Mid-Size SUV at the rate of 32%
Mid-Size SUV 15%
13%
12%
9%
7%
Subcompact SUV
Compact Car
Lux Compact SUV
Mid-Size Car
CROSS SHOPPING DEFECTION
COMPACT
SUV
Mid-Size SUV 32.0%
10.5%
10.2%
9.3%
9.0%
Compact Car
Subcompact SUV
Full-Size Pickup
Mid-Size Car
Mid-Size SUV Owners are Defecting to a Smaller SUV or a Full-Size Truck Based on KBB.com Traffic
Source: KBB.com Traffic, Q2 2018Read as: Mid-Size SUV shoppers are cross shopping Compact SUVs at the rate of 20% and Mid-size SUV is defecting to Compact SUV at the rate of 27.1%
Compact SUV 20%
9%
8%
8%
6%
Lux Compact SUV
Lux Mid-Size SUV
Subcompact SUV
Compact Car
CROSS SHOPPING DEFECTION
MID-SIZE
SUV
Compact SUV 27.1%
12.4%
9.3%
8.9%
8.4%
Full-Size Pickup
Lux Mid-Size SUV
Mid-Size Car
Lux Compact SUV
Who’s Buying SUVs?
46% 54%
Women Skew More Towards Compact SUV, Whereas Men Are Looking for More Ruggedness and Buying Mid-Size SUVs
Source: IHS/Markit – New Retail Vehicle Registrations. Jan 2017 – March 2018
COMPACT
SUV
MID-SIZESUV
57% 43%
SUV Owners – Income
Source: IHS/Markit – New Retail Vehicle Registrations. Jan 2017 – March 2018
6%
15%
31%
27%
20%
3%
10%
27%
30% 30%
6%
13%
27%26%
29%
$0 - $19,999 $20,000 - $39,999 $40,000 - $74,999 $75,000 - $124,999 $125,000 +
SUV INCOME(Vehicle Registrations)
Compact SUV Mid-size SUV Industry
People making less money are drawn to the more affordable
Compact SUV segment
As income increases, Midsize SUV ownership increases
(higher than industry average)
Majority of Mid-size SUV Buyers are Gen X; Compact SUV are Baby Boomers
Source: IHS/Markit – New Retail Vehicle Registrations. Jan 2017 – March 2018
10%
37%
45%
9%12%
48%
35%
5%
18-34 35-54 55-74 75+
AGE GROUP(Vehicle Registration)
COMPACT SUV/CUV MIDSIZE SUV/CUV
Whites are Over-Indexing in SUV Ownership
Source: IHS/Markit – New Retail Vehicle Registrations. Jan 2017 – March 2018
72%
13%
8% 7%
74%
14%
7% 6%
61%
18%
13%
6%
White Hispanic African American Asian
ETHNICITY BREAKOUT AND PURCHASE PERCENT
Compact SUV Mid-Size SUV Industry
Psychographics – Fence Sitters are More Similar to Car Considerers
Source: Kelley Blue Book, Consumer Sentiment Survey (Jan-Jun, 2018) N = 7167
Domestic Partisan Eco-Conscious
Family Oriented
Financially Responsible
Image Conscious Outdoorsy Self-Confident Techie Thrill Seeker
+10% +15% +11% +14%
+10% +9%
+22% +14%
Cars Only
SUVs Only
Fence Sitter
CONSIDERERS
More likely to be ABOVE Average
Which OEMs Are Succeeding or Are Challenged in Leveraging the Shift to SUVs in the Marketplace?
SUVs Have Disproportionally Helped Grow These Successful Brands
Source: OEM Press release sales data
Overall Sales Change Car Change SUV Change
+262% +29% +640%
+132% +109% +196%
+70% +24% +203%
+62% -7% +968%
+59% +9% +173%
SALES % CHANGE(2008 vs 2018)
Explosive SUV growth contributed
to the overall brand sales
Despite SUV Growth, Cars Have Diminished Impact in Overall Brand Success
Source: OEM Press release sales data
SALES % CHANGE(2008 vs 2018)
Despite growth in SUVs, decline in car
sales hindered overall brand
growth
Overall Sales Change Car Change SUV Change
+27% -15% +77%
+25% -63% +366%
+25% -41% +207%
+17% -13% +92%
+17% -27% +158%
+11% -39% +147%
Negative Growth in Car Sales and Modest SUV Gains
Source: OEM Press release sales data
SALES % CHANGE(2008 vs 2018)
Overall Sales Change Car Change SUV Change
-18% -45% +53%
What Are OEMs Doing to Offset Spikes in Gas Prices?
Fuel Economy Has Vastly Improved Among All Segments;SUV Made the Biggest MPG Change Over The Past 11 Years
Source: FuelEconomy.gov and KBB Automotive Insights
24.0
24.825.3
25.8
26.5
27.7
28.528.9 29.1 29.4 29.6
29.9
17.918.6
19.6
20.420.8
21.221.9
22.322.9 23.1 23.4
23.7
15.8 16.0 16.2 16.3 16.5 16.5 16.717.2
18.0 18.118.4 18.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ave
rage
MP
G
MPG BY SEGMENT
+ 32%
SUVs
+ 17%
Trucks
+ 25%
Cars
Source: Bloomberg, AAA, Kelley Blue Book, Cox Automotive
As MPG Improves for SUVs, There is Less Volatility in Light Truck Sales When Gas Prices Spike
33
53%
49%48%
51%52%
50%
51%
53%
57%61%
65%
68%
$45.16
$52.52
$34.68
$38.36
$48.36
$52.03
$49.57
$45.61
$29.43 $25.58
$27.82
$31.75
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
40%
45%
50%
55%
60%
65%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Truck Share and Monthly Fuel Premium on New Models
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Jan
-05
Au
g-0
5
Mar
-06
Oct
-06
May
-07
Dec
-07
Jul-
08
Feb
-09
Sep
-09
Ap
r-1
0
No
v-1
0
Jun
-11
Jan
-12
Au
g-1
2
Mar
-13
Oct
-13
May
-14
Dec
-14
Jul-
15
Feb
-16
Sep
-16
Ap
r-1
7
No
v-1
7
Jun
-18
Jan
-19
Oil and Unleaded Gas Prices
WTI Cushing Spot Price Ave Gas Price UnleadedAvg Gas Price Unleaded
X4
CUV
Mid-Lux CUV
Near-Lux CUV
CUV
NX
Macan
CUV
GV70
G. Cherokee
RX
Rogue
GV80
Murano
4-Runner
C-HR
CUV
HR-V
CUV
Cherokee
CUV
CUV
Forester
Polestar 3
Expedition
300 NX
Sorento
CUV
iNext
X3
CUV
Model Y
CUV
SUV
Equinox
Terrain
Cherokee
Q4
CUV
GLC
XC40
CUV
M Byte
Bolt SUV
Imx
ID Crozz
CUV
GLB
CUV
Regal Tour X
Escape Energi
Pilot
Wrangler
Aviator
Forester
XC40
e-Tron
Kona
Niro
EQC
Escape
Corsair
Levante
Cherokee
Crosstrek
In Continuing to Improve MPG in SUVs, OEMs are Launching Alternative Fuel SUVs in the Coming Years in Addition to New Brands Entering the Market
Source: Automotive News Future Pipeline, OEM websites
2019 2020 2021 2022
Fuel CellElectric Vehicle Plug-in Hybrid
2023+
Key Takeaways
• The market shift from cars to SUVs continues, as 2018 was a stellar year for new SUV sales, closing out at 6.5+ million units. However, there are signs of SUV saturation with days supply and average ATP climbing up and more new product launches. Dealers and OEMs have the challenging task of balancing inventory and incentives to sustain sales.
• To effectively message to SUV shoppers, highlight must-have features that appeal most to them: AWD or 4WD, Backup Camera, Bluetooth, and Heated/Cooled Seats. Also, showcase aspects that capture their attention such as Spaciousness, Ingress/Egress, Higher Vantage Point, and Safety Advantages.
• Car and SUV Considerers significantly differ in their psychographic mindset. Fence sitters (those considering both Cars and SUVs) share similar values as Car Considerers. In order to persuade Fence sitters toward SUVs, the products should be environmentally friendly and have striking styling among other factors.
• With ongoing gas price fluctuations and the prediction of $3 per gallon, OEMs have been significantly improving fuel efficiency on SUVs in the last 10+ years. In continuing the trend of more fuel efficiency and meeting CAFÉ standards, OEMs are planning to launch a slew of alternative fuel SUVs.
APPENDIX
SUV Shopper Profile
Source: Compact SUV Survey, 2018, N=1320, Mid-Size SUV Survey, 2018, N=835
MedianIncome
Gender (Male)
65K
70K
COMPACT
MID-SIZE
50%
63%
58
54
Median Age
Ethnicity
74%
4% 4% 3%
70%
5% 6%2%
Caucasian Hispanic African-American Asian
MID-SIZECOMPACT
Compact SUV Dominates the Coasts and New England States, WhileMidsize SUV Has A Strong Presence in the Central and Southern States
Source: IHS/Markit – New Retail Vehicle Registrations March 2017 – March 2018
MID-SIZE & COMPACT SUV REGISTRATION SHARE
Compact SUVRegistration
Midsize SUVRegistration
Top Selling Models By Brand: Subaru
Source: OEM Press release sales data
Car62%
SUV38%
2008 SUBARU SALES
Car22%
SUV78%
2018 SUBARU SALES
32%Forester
6%Tribeca
36%Legacy
20%Impreza
26%Outback
25%Forester
21%Crosstrek
6%Legacy
11%Impreza
Top Selling Models By Brand: Kia
Source: OEM Press release sales data
11%Sorento
12%Sportage
25%Spectra
16%Optima
18% Soul
17%Optima
17%Forte
18%Sorento
14%Sportage
Car67%
SUV23%
Minivan, 10%
2008 KIA SALES
Car65%
SUV32%
Minivan, 3%2018 KIA SALES
Top Selling Models By Brand: Hyundai
Source: OEM Press release sales data
18%Santa Fe X
5%Tucson
30%Elantra
16%Sonata
29%Sonata
24%Elantra
13%Accent
21%Tucson
14%Santa Fe
Car73%
SUV25%
Minivan2008 HYUNDAI SALES
Car54%
SUV46%
2018 HYUNDAI SALES
Top Selling Models By Brand: Volkswagen
Source: OEM Press release sales data
4%Tiguan
26%Jetta
12%Passat
44%Jetta
13%Passat
12%Beetle
29%Tiguan
17%Atlas
Car91%
SUV7%
Minivan2008 VOLKSWAGEN SALES
Car53%
SUV47%
2018 VOLKSWAGEN SALES
Top Selling Models By Brand: Nissan
Source: OEM Press release sales data
9%Rogue
9%Murano
16%Altima
16%Sentra
32%Altima
12%Sentra
31%Rogue
Car61%
SUV27%
Minivan2% Truck
10%
2008 NISSAN SALES
Car43%SUV
47%
Truck10%
2018 NISSAN SALES
Top Selling Models By Brand: Ford
Source: OEM Press release sales data
11%Escape
7%Edge
12%Focus
9%Fusion
Truck37%
SUV29%
Car34%
2008 FORD SALES
Truck42%
SUV37%
Car21%
2018 FORD SALES
33%F-Series
13%Escape
12%Explorer
8%Fusion
5%Focus
42%F-Series
Top Selling Models By Brand: Mitsubishi
Source: OEM Press release sales data
14%Outlander
29%Lancer
16%Eclipse
35%Outlander
33%Outlander Sport
21%Mirage
Car77%
SUV20%
Truck, 3%2008 MITSUBISHI SALES
Car23%
SUV77%
2018 MITSUBISHI SALES
Top Selling Models By Brand: MAZDA
Source: OEM Press release sales data
10%CX-7
10%CX-9
42%MAZDA3
20%MAZDA6
50%CX-5
9%CX-9
22%MAZDA3
10%MAZDA6
Car67%
SUV24%
Minivan9%
2008 MAZDA SALES
Car35%
SUV65%
2018 MAZDA SALES
Top Selling Models By Brand: Honda
Source: OEM Press release sales data
15%CR-V
8%Pilot
29%Accord
26%Civic
26%CR-V
11%Pilot
23%Civic
20%Accord
Car61%
SUV25%
Minivan11%
Truck, 3%2008 HONDA SALES
Car48%SUV
43%
Minivan7%
Truck, 2%2018 HONDA SALES
Top Selling Models By Brand: Toyota
Source: OEM Press release sales data
7%RAV4
5%Highlander
24%Camry
19%Corolla
20%RAV4
11%Highlander
16%Camry
13%Corolla
Car60%
SUV19%
Minivan6%
Truck15%
2008 TOYOTA SALES
Car38%
SUV41%
Minivan4%
Truck17%
2018 TOYOTA SALES
Top Selling Models By Brand: Chevrolet
Source: OEM Press release sales data
6%Tahoe
5%TrailBlazer
16%Impala
11%Malibu
28%Silverado
17%Equinox
8%Traverse
7%Malibu
7%Cruze
30%Silverado
Car49%
SUV18%
Truck33%
2008 CHEVROLET SALES
Car25%
SUV38%
Truck37%
2018 CHEVROLET SALES
Top Selling Models By Brand: Dodge
Source: OEM Press release sales data
13%Journey
26%Charger
23%Caliber
31%Journey
21%Durango
26%Charger
22%Challenger
Car48%
SUV52%
2018 DODGE SALES2008 DODGE SALES
Car72%
SUV28%
10%Nitro
46% 54% 58% 42% 57% 43%
Compact SUV Shoppers Skew Female, Whereas, Mid-Size SUV Skews Male
Source: IHS/Markit – New Retail Vehicle Registrations. Jan 2017 – March 2018
COMPACT
SUVMID-SIZESUV
Industry
SUVs Retain More Values Than Cars
Source: KBB.com Auction Values, 8/31/2018
Current auction retention values for 1 to 3-year-old models
CAR RETENTION % SUV RETENTION %
Subcompact Car 49% Subcompact SUV/Crossover 59%
Compact Car 55% Compact SUV/Crossover 59%
Mid-size Car 53% Mid-size SUV/Crossover 61%
Full-size Car 51% Full-Size SUV/Crossover 61%
Overall Cars 54% Overall SUV 60%
Compact and Midsize Cars Still Cost Less to Operate, Although the Gap With Utilities Has Narrowed
Source: FuelEconomy.gov and KBB Automotive Insights
AVERAGE GAS COST
Segment2007
Monthly Cost2018
Monthly Cost Difference
2018 Daily Cost
Compact Car
$119.64 $94.30 $25.34 $3.14
Mid-size Car
$147.28 $98.97 $32.90 $3.30
Compact SUV
$132.09 $114.38 $33.12 $3.81
Mid-size SUV
$181.15 $141.89 $39.26 $4.73
Even When Considering New, Consumers Might Gravitate Towards Used Cars for the Value It Offers
KBB.com Interplay Between New and Used Survey N=2001What do you think are the top 3 reasons someone shopping a new vehicle ends up buying a used vehicle instead?
New model ended up being too expensive
Deal on used vehicle was too good to pass up
Ended up getting more bang for their buck (i.e. more options, more premium brand/model)
Finance rates and terms were more favorable
The used version was exactly the same, but with more miles
Model they want is not available new
Prefer the styling of the used version of the model compared to latest version
Salesperson talked them into it 23%
25%
28%
32%
39%
42%
53%
58%
REASONS SOMEONE SHOPPING NEW ENDS UP BUYING USED
SUV Milestones
Source: Wikipedia*Body-on-Frame (truck-based) construction; unibody construction is also known as car-based
1990: Ford ignites SUV market with family-focused Explorer
2008: GM introduces Lambda crossovers to replace BOF SUVs
2010: Ford replaces BOF Explorer with crossover
2012: Nissan replaces BOF Pathfinder with crossover
1996: Toyota introduces RAV4 as first pure crossover
2000: Toyota establishes dual product strategy, introducing Highlander while keeping the 4Runner
1997: Honda establishes size and execution mold for compact CUVs with CR-V
1980s: SUV market goes mainstream, with several entries including Blazer, Cherokee, Pathfinder and 4Runner following same formula
2002: After Isuzu-based Passport comes up short, Honda bets on CUV formula with Pilot
1988-2000: Safety of truck-based utilities comes into question, as rollover news plagues Explorer, Trooper and Samurai
1941: American Bantam’s design for the military Jeep creates the original off-road utility vehicle
1935: The Chevy Suburban offers a wagon body on a truck frame, kicks off its streak as longest-running nameplate in auto history
1960s: Brands from Int’l Harvester to Ford come to market with truck-based utility vehicles
Pre-1990s 1990s 2000s 2010s
In the 2000s the industry made the switch from BOF* to unibody in earnest
Historically SUVs Have Faced Distinct Barriers to Adoption
Fuel EfficiencySafety Affordability
Car-Based 2013
Chevy Traverse
Ford Explorer
Nissan Pathfinder
Toyota Highlander
Average 4
Most SUVs Were Converted to Car-Based Frame, Rollover Ratings Improved Significantly Across the Board and Shifted Safety Perception
Source: Safercar.gov, KBB.com
NHTSA RATINGS OUT OF 5 STARS
Truck-Based 2009
Chevy TrailBlazer
Ford Explorer
Nissan Pathfinder
Toyota 4Runner
Average 3
SUVs Are Now More Affordable than Previous Years
More SUV offerings within the 30-40K price range now than 2012. More available in the
lower price range.
SUVs in the 40-50K price range has gone down, more of an even mix with cars.
42%
44%
46%
48%
50%
52%
54%
56%
2012 2013 2014 2015 2016 2017 2018
VEHICLES BETWEEN $30K-40K
Car SUV
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 2016 2017 2018
VEHICLES WITHIN $40K-50K
Car SUV
Source: Dealer Retail Transaction Datase Data. Sales for all segments (non-lux)
PRIMARY VEHICLE CAR SUV
Car 46% 54%
SUV 15% 85%
Truck 26% 74%
Minivan 25% 75%
Wagon 41% 59%
Drivers of All Segments Perceive SUVs to be Safer than Cars
Source: KBB.com Core Segment Survey, April 2017, N=3813Q: Between car and an SUV, which do you think is generally better on each of these factors?
Q: Why do you think [vehicle] is SAFER?
Which is safer?
• SUVs have a clear advantage in safety image, with
many citing size and visibility as pluses
SUV Shoppers Are Placing Less Importance on Fuel Efficiency
Source: KBB.com Brand Watch Please review the list below and rate how important each of the factors are to you in deciding your next new vehicle.
35%
40%
45%
50%
55%
60%
65%
70%
20
12
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
% V
ery
Imp
ort
ant
FUEL EFFICIENCY IMPORTANCE
Compact Utility Vehicle Midsize Utility Vehicle
Compact SUV
Midsize SUV
3rd
4th
5th
7th
...And More Importance on Affordability
Source: KBB.com Brand Watch Please review the list below and rate how important each of the factors are to you in deciding your next new vehicle.
45%
50%
55%
60%
65%
70%
75%2
01
2Q
1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
% V
ery
Imp
ort
ant
AFFORDABILITY IMPORTANCE
Compact SUV Midsize SUV
3rd
4th
Compact SUV
Midsize SUV
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