Category: AutomotiveUnited States

JD Power Expands Automotive Data and Analytics Portfolio in Europe and Australia with Acquisition of Autovista Group

2023-09-12

jillian.breska

TROY, Mich.: 12 Sept. 2023 — JD Power, a global leader in data analytics, today announced a definitive agreement to acquire Autovista Group, a leading pan-European and Australian automotive data, analytics and industry insights provider. The acquisition complements JD Power’s strengths in vehicle valuation and detailed vehicle specification data and analytics while broadening its footprint into the European and Australian automotive markets.

The deal creates strong value for customers of both companies by bringing together Autovista Group’s comprehensive European and Australian market intelligence with JD Power’s market-leading predictive analytics and valuation and customer experience datasets. These highly complementary offerings will give original equipment manufacturers (OEMs), dealers, insurers and financing companies a truly global view of critical trends influencing the industry, along with the tools they need to accurately forecast risk, capitalize on burgeoning trends and align sales strategy with real-time market dynamics.

“Precise vehicle valuations and detailed vehicle specifications are the central underpinning to every data-driven strategy in the automotive industry—from optimizing vehicle production to calculating residual values to all manner of insurance—and finance-related risk assessment and repair models, and the combined assets of JD Power and Autovista Group will create truly comprehensive, global valuation and forecasting solutions,” said Dave Habiger, president and CEO at JD Power. “Additionally, as U.S. consumers increasingly adopt the European model of configuring and ordering a custom vehicle specification, rather than picking whatever the dealer has on the lot, Autovista’s detailed, vehicle-specific data and analytics will give OEMs critical information they need to navigate this change in consumer behavior. We are excited for the Autovista team to join JD Power and for the future growth opportunities we will pursue together.”

Through its five leading brands—Autovista, Eurotax, Glass’s, Schwacke and Rødboka—Autovista Group standardizes and categorizes hundreds of technical attributes for virtually every vehicle produced in the European and Australian markets, providing clients with a 360-degree view of detailed vehicle data for use in valuations, forecasts and repair estimates. In addition, its robust analytic solutions and team of experienced analysts are relied upon by stakeholders throughout the automobile industry for detailed insights and benchmarks for vehicle values and ownership, repair and replacement costs.

“The global automobile industry is undergoing a historic transformation in which an ever-increasing array of models and fuel types, volatile swings in used car values and lingering supply chain challenges are making it more difficult than ever to project future value and understand total cost of ownership,” said Lindsey Roberts, CEO at Autovista. “By pairing our leading pan-Europe- and Australia-focused datasets with JD Power’s robust North American and Asian market data, analytics and insights, we are creating the truly global solution the industry needs to manage through this period of radical change.”

“The addition of Autovista Group broadens our global presence allowing us to serve our customers across key global markets including North America, Europe and Asia/Australia,” said Pete Cimmet, chief strategy officer at JD Power. “We look forward to partnering with the Autovista team to launch innovative new products and pursue strategic add-on acquisitions in Europe and Australia.”

Autovista Group’s senior leadership and its 700 employees will continue with the company and will become JD Power’s automotive data and analytics platform for Europe and Australia. Lindsey Roberts will continue to lead the team as President, JD Power Europe reporting to CEO Dave Habiger.

Autovista Group is currently owned by Hayfin Capital Management, a leading European alternative asset management firm.

“It has been a pleasure working with CEO Lindsey Roberts and the entire Autovista team,” said Carlos Pla, portfolio manager at Hayfin. “Together, we have successfully grown the business and executed the strategy to become a purely digital play and better serve the increasingly digital automotive ecosystem. We look forward to watching the company’s continued success as part of JD Power.”

The acquisition of Autovista Group is expected to close by the end of 2023 and is subject to customary closing conditions as well as regulatory review and approval.

RBC Capital Markets served as exclusive financial advisor and Kirkland & Ellis served as legal advisor to JD Power. TD Cowen served as exclusive financial advisor and Macfarlanes, Cravath, Swaine & Moore and Mishcon de Reya served as legal advisors to Autovista Group and Hayfin.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

About Hayfin Capital Management
Founded in 2009, Hayfin Capital Management (“Hayfin”) is a leading alternative asset management firm with c. €30 billion in assets under management. Hayfin focuses on delivering attractive risk-adjusted returns for its investors across its private debt, liquid credit and private equity solutions businesses.

Hayfin has a diverse international team of over 200 experienced industry professionals with offices globally, including headquarters in London and offices in Frankfurt, Munich, Madrid, Milan, Paris, Luxembourg, Stockholm, New York, San Diego, Singapore and Tokyo.

Further information can be found at hayfin.com.

Media Relations Contacts
Geno Effler, JD Power; USA; 714-621-6224; [email protected]
Kirstin Stocker, Autovista Group; UK; +44 (0) 7711 284553; [email protected]
James Davey, Hawthorn Advisors; UK; +44 (0)7858 373930; [email protected]

 

With More Choices, Brand Loyalty Slips among New-Vehicle Owners, JD Power Finds

2023-09-25

jillian.breska

TROY, Mich.: 26 Sept. 2023 — As new-vehicle inventory and sales rebound to pre-pandemic levels in the United States, more buyers are choosing to forego loyalty to a specific brand, according to the JD Power 2023 U.S. Automotive Brand Loyalty Study,^SM released today.

“As vehicle availability increased and more choices hit the market for consumers, loyalty among brands as a whole saw a decline this year,” said Tyson Jominy, vice president of data & analytics at JD Power. “Additionally, owners were tied down to their vehicles for longer than normal due to ongoing supply chain disruptions, and as a result were more likely to experience problems with their vehicles.

“Now that some of those issues have eased, consumers are looking to get behind the wheel of something different and are no longer remaining as loyal to a brand. However, many of the highest-ranking brands perform similarly year after year. When vehicles deliver an experience that meets owner expectations, such as by offering superb build quality, owners are likely to reward brands with their loyalty.”   

Highest-Ranking Brands

Porsche ranks highest among premium brand car owners for a second consecutive year, with a 56.8% loyalty rate. Mercedes-Benz (50.5%) ranks second.

Volvo ranks highest among premium brand SUV owners with a 56.5% loyalty rate. BMW (56.1%) ranks second.

Toyota ranks highest among mass market brand car owners for a second consecutive year, with a 60.0% loyalty rate. Honda (55.0%) ranks second.

Subaru ranks highest among mass market brand SUV owners with a 61.1% loyalty rate. Toyota (60.5%) ranks second.

Ford ranks highest among truck owners for a second consecutive year, with a 64.6% loyalty rate, the highest loyalty rate in the study. Toyota (60.4%) ranks second.

The study, now in its fifth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. Only sales at new-vehicle franchised dealers qualify. The study includes brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck.

The 2023 study calculations are based on transaction data from September 2022 through August 2023 and include all model years traded in.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

Stakes are High and Consumer Confidence is Fragile for Automated Vehicles, JD Power Finds

2023-09-26

jillian.breska

TROY, Mich.: 4 Oct. 2023 — Consumer confidence in fully automated, self-driving vehicles continues to decline for a second consecutive year, according to the JD Power 2023 U.S. Mobility Confidence Index (MCI) Study,^SM released today. The index score for consumer automated vehicle (AV) readiness declines 2 points to 37 (on a 100-point scale), contributing to the 5-point decline from 2021. Consumers show low readiness on all metrics with the lowest level of comfort riding in a fully automated, self-driving vehicle and using fully automated, self-driving public transit. Public opinion and consumer comfort are affected by a lack of general knowledge about AV technology development compounded by media coverage that highlights robotaxi and testing failures.

Confidence soars, however, for consumers who have ridden in a robotaxi in Phoenix or San Francisco with an MCI index score of 67, which is almost double the index score (37) of those who haven’t ridden in a robotaxi and is indicative of experience being critical to full-scale AV adoption. These positive firsthand experiences need to be shared with the public to educate, providing balance to the negative news cycle. Consumer comfort is higher in the West region of the country, a region familiar with AV testing and deployments.

“Consumer trust is fragile, but it is the foundation upon which long-term AV acceptance is built,” said Lisa Boor, senior manager of auto benchmarking and mobility development at JD Power. “This first-time feedback from robotaxi riders shows significant growth in consumer comfort levels across any AV application. Industry stakeholders must seize the opportunity to build confidence and promote the technology across all transportation modalities through these first-hand experiences but, for success, it cannot be overshadowed by endless deployment issues.”

The percentage of consumers who believe fully automated, self-driving vehicles are available today has increased across all transportation modalities. It is encouraging that consumers are able to accurately cite examples of available AV delivery services (e.g., Amazon, Domino’s), robotaxis (e.g., Waymo, Cruise, Uber) and commercial transport applications. However, consumers inaccurately cite examples of personal vehicles available to purchase or lease today, as 22% indicate that “Tesla” or “Autopilot” are fully automated.

“Experience with automation appears to greatly improve confidence in the technology. As trust is built over time but eroded quickly, stakeholders may need to find new ways to proactively educate potential users on the advantages and current limitations of vehicle automation systems,” said Bryan Reimer, Ph.D., research scientist in the AgeLab at the MIT Center for Transportation and Logistics and a founder of MIT’s Advanced Vehicle Technology (AVT) Consortium. “Automated driving technology is still very much in an evolving and testing stage with improvements occurring quickly. Consumers’ understanding of where we are on the path to long-term automated mobility needs to be calibrated as today’s systems are not designed to enable more risky driving.”

Following are some key findings of the 2023 study:

• Consumers not able to differentiate between lower levels of automation: Technical definitions used by the industry to make the distinction between lower levels of automation in terms of the transfer of control are ineffective. In the consumer’s mind, being ready to take control requires the same responsibility as driving the vehicle without any level of assistance. Failed attempts to define lower levels of automation in consumer-friendly language are evident as the findings show that naming conventions are interchangeable between the two levels even when definitions are provided. Furthermore, there is no distinction in the activities that consumers are willing to do in a vehicle (e.g., talking, texting, online searching) as the level of automation increases from SAE Level 2^TM to SAE Level 3^TM.¹
• Hacking prevention and data privacy: More than three-fourths (78%) of consumers want to understand what is being done to prevent AVs from being hacked. Consumers are not comfortable sharing personal information which results from uncertainty as to what information is being shared; how the information is being used; whether it is being stored; and, if so, stored securely. Of the four types of information tested in the study, consumers are more willing to share their blood alcohol level than their location. Incentives do little to change the mind of those who are not comfortable.
• Many owners admit to doing risky things: Owners appreciate that vehicle automation removes the risk of high use case, risky behaviors (e.g., talking, texting, online searching) and provides the opportunity for activities that were previously prohibitive for the driver to do in the vehicle such as sleeping. The study includes insights into the activities and in-vehicle features consumers desire when they no longer need to drive or watch the road.

The JD Power 2023 Mobility Confidence Index Study is based on responses from 3,000 vehicle owners in the U.S. age 18 and older who completed a 15-minute online survey. The study results are balanced to basic census demographics to be nationally representative. The study was fielded in July 2023 and is based on six unique attributes of consumer comfort with fully automated, self-driving vehicles. The comprehensive metric measures consumer readiness for AV technology in several categories: personal vehicles; commercial vehicles; public transit; riding if unable to drive due to age or injury; sharing the road with other AVs; and consumer purchase intent.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe, and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business.

About the MIT Advanced Vehicle Technology Consortium 
The Advanced Vehicle Technology (AVT) Consortium is an academic-industry partnership founded in 2015 within the Massachusetts Institute of Technology (MIT) Center for Transportation and Logistics. It is supported by over 25 different automakers, insurance companies, suppliers, and research organizations through a pre-competitive collaboration designed to develop a data-driven understanding of drivers’ behavior with, and utilization of, vehicle automation, driver safety systems, and other technologies. AVT research aims to support a future of safe, convenient, and sustainable mobility through more effective human-centered vehicle technology development and consumer understanding of appropriate technology usage.

Media Relations Contacts 
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Benjy Kantor, MIT Center for Transportation & Logistics; 617-253-5341; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info 

¹ https://www.sae.org/standards/content/j3016_202104/

 

New-Vehicle Sales up 21.5% in July, Marking Fourth Consecutive Month of Double-Digit Growth

2023-07-26

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for July 2023, including retail and non-retail transactions, are projected to reach 1,320,982 units, a 21.5% increase from July 2022, according to a joint forecast from JD Power and GlobalData. Total sales of new vehicles this month are expected to reach 1,320,982 units, a 21.5% increase compared with July 2022 when adjusted for selling days. July 2023 has 25 selling days, one less than July 2022. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 16.8% from a year ago.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.0 million units, up 2.6 million units from July 2022.

The Retail Sales Forecast

New-vehicle retail sales for July 2023 are expected to increase when compared with July 2022. Retail sales of new vehicles this month are expected to reach 1,083,906 units, a 15.2% increase from July 2022 when selling day adjusted. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 10.8% from July 2022.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“July continues the prevailing theme of robust sales growth thus far in 2023, facilitated by amplified vehicle production and pent-up consumer demand. July year-to-date total sales will be slightly more than 9.0 million units—an increase of 14.4% from a year ago—but still below pre-pandemic sales levels, which were north of 9.8 million. As sales volumes improve, the average new-vehicle retail transaction prices are declining modestly, down 1.9% from July 2022.

“Retail inventory levels in July are expected to finish around 1.3 million units, in line with June 2023 and a substantial increase of 63.7% compared with July 2022, but well below historical levels.

“Sales to fleet customers are still relatively elevated as manufacturers leverage higher vehicle production to allocate more vehicles to those fleet customers. Fleet sales are projected to increase 55.1% from July 2022.

“The increased vehicle supply and elevated interest rates have led to a decline in dealer profits—but those profits still exceed pre-pandemic levels. The total retailer profit per unit—which includes grosses, finance and insurance income—is expected to reach $3,533 in July. While this is 28.3% lower than a year ago, it is still more than double the amount in July 2019. The primary reason for the decline in profit is that fewer vehicles are being sold for prices higher than the manufacturer’s suggested retail price (MSRP). This month, only 28.7% of new vehicles are projected to be sold above MSRP, which is down from 49.3% in July 2022.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be down 22.4% from July 2022, reaching $3.6 billion for the third-highest July on record.

“Retailers continue to sell vehicles before they physically arrive at the dealership. However, with increased inventory levels, more consumers are now able to purchase vehicles from dealer lots. In July, 44% of vehicles are projected to be sold within 10 days of their arrival at the dealership, which is down from the peak of 57% in March 2022. The average time that a new vehicle spends in the dealer’s possession before being sold is expected to be 28 days, up from 19 days a year ago, but still less than half the pre-pandemic average of 70 days.

“Manufacturer discounts in July rose slightly compared with June and have increased materially from a year ago. The average incentive spend per vehicle has risen 107% from July 2022 and is currently on track to reach $1,888. Expressed as a percentage of MSRP, incentive spending is currently trending at 3.7%, an increase of 1.7 percentage points from July 2022. A key factor influencing the relatively lower incentives compared to historical levels is the decreased number of discounts provided for leased vehicles. However, it is noteworthy that discounts on leased vehicles have risen in recent months. This month, leasing is expected to account for 20% of retail sales, up significantly from the low of 16% in September 2022, but still well below July 2019 when leased vehicles made up nearly 30% of all new-vehicle retail sales.

“Elevated pricing coupled with interest rate increases continue to inflate monthly loan payments. The average monthly finance payment in July is on pace to be $720, up $16 from July 2022. That translates to a 2.3% increase in monthly payments from a year ago. The average interest rate for new-vehicle loans is expected to be 7.1%, an increase of 180 basis points from a year ago.

“Used-vehicle prices have declined slightly from a year ago but remain close to all-time highs. The average trade-in equity for July is trending toward $9,033, down $1,014 from a year ago. For context, trade equity this month is still double the pre-pandemic level, helping owners offset some of the pricing and interest rate increases.

“In the latter half of 2023, the industry could face a series of challenges, yet remains poised to navigate through them. Despite the potential effect of prevailing macro-economic risks, the industry is ready to capitalize on the prevailing pent-up demand for new vehicles, in conjunction with incremental enhancements in historically low inventory levels. As the availability of new vehicles improves, a gradual easing of pricing and per unit profitability is anticipated but will be mitigated by higher sales volumes.”

Sales & SAAR Comparison

U.S. New Vehicle	July 20231, 2	June 2023	July 2022
Retail Sales	1,083,906 units (15.2% higher than July 2022)2	1,097,476 units	978,311 units
Total Sales	1,320,982 units (21.5% higher than July 2022)2	1,373,879 units	1,131,155 units
Retail SAAR	12.7 million units	12.7 million units	11.2 million units
Total SAAR	16.0 million units	15.7 million units	13.4 million units

¹ Figures cited for July 2023 are forecasted based on the first 18 selling days of the month.
² July 2023 has 25 selling days, one less than July 2022.

The Details

• The average new-vehicle retail transaction price in July is expected to reach $45,305, down $866 from July 2022. The previous high for any month—$47,362—was set in December 2022.
• Average incentive spending per unit in July is expected to reach $1,888, up from $977 in July 2022. Spending as a percentage of the average MSRP is expected to increase to 3.7%, up 1.7 percentage points from July 2022.
• Average incentive spending per unit on trucks/SUVs in July is expected to be $1,972, up $1,045 from a year ago, while the average spending on cars is expected to be $1,648, up $798 from a year ago.
• Retail buyers are on pace to spend $46.3 billion on new vehicles, up $2.7 billion from July 2022.
• Truck/SUVs are on pace to account for 77.9% of new-vehicle retail sales in July.
• Fleet sales are expected to total 237,076 units in July, up 61.3% from July 2022 on a selling day adjusted basis. Fleet volume is expected to account for 17.9% of total light-vehicle sales, up from 13.5% a year ago.
• Average interest rates for new-vehicle loans are expected to increase to 7.1%, 180 basis points higher than a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“With a record score of 51 on the JD Power EV Index, EVs are more than halfway to achieving parity with gas-powered vehicles. Affordability remains the top factor, improving one point to a score of 95. Interest and adoption also rise, as the EV market share in June reached an all-time high of 8.6%.

“This begs the question, how does a record EV Index, supported by record EV retail share, fit with reports that EV inventory is growing rapidly? While EV inventory has more than doubled to 6.7% from 3.3% a year ago, that’s only half of the story. Consumers are buying more EVs, but Tesla’s aggressive price cuts in pursuit of market share have increased its EV lead. Retail share for all other EVs in June ended at 3.0%, an increase of only 0.9 percentage points from a year ago. Tesla, however, has grown 1.9 percentage points to 5.6%.

“Inventory is finally ramping up for franchise dealers, though an availability score of 40 indicates that only 40% of new-vehicle shoppers have an EV substitute for an ICE vehicle that meets their needs and price. Shoppers and dealers may still be confused about qualifications for the Inflation Reduction Act. While the industry’s move toward a single charging standard—Tesla’s North American Charging Standard (NACS)—is positive for the long-term, the changeover to the new plugs will take several years, potentially confusing some shoppers in the interim.”

Global Sales Outlook

Jeff Schuster, group head and executive vice president, automotive at GlobalData:
“The global light-vehicle selling rate hit 94.3 million units, the highest monthly rate since August 2019 and nearly 10 million units higher than June 2022. Global volume climbed to 8.0 million units in the month, up 11% from the same period a year ago. Driving the strong growth were China (+30%), India (+28%), Europe (+23%) and North America (+19%).

“With a few days remaining, the selling rate in July is projected to be 91 million units. This would be the first back-to-back performance above 90 million units since the surge from the first reopening in late 2020. Volume is forecast to improve just 2% from July 2022 when volume benefited from a boost in China. In fact, China is expected to contract more than 10% this month given the strong performance a year ago.

“The global outlook for 2023 is largely in line with last month, but volume is up 100,000 units to 86.4 million, or 7% higher than 2022. The auto industry continues to walk a tightrope through the various risks in the industry, including the economy, disruption and pricing pressures on consumers. However, demand remains robust and inventory levels are rising, which have kept the industry with a positive health outlook into 2024. The forecast for global light vehicles in 2024 is stable at 90.2 million units.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

About GlobalData https://www.globaldata.com/

 

U.S. Department of Energy Selects JD Power Electric Vehicle Index to Support EV Infrastructure Growth Initiatives

2023-07-28

jillian.breska

TROY, Mich.: 31 July 2023 — JD Power, a global leader in data analytics and consumer intelligence, today announced that its JD Power EV Index^SM, an analytics tool to track the growing electric vehicle (EV) market in the United States, has been selected by the U.S. Department of Energy (DOE) to help establish benchmarks and monitor ongoing development of EV infrastructure nationwide. The only analytics tool of its kind to deliver detailed data on EV infrastructure development and consumer experience with public charging networks at the ZIP Code level across the country, the JD Power EV Index will provide vital information on regional trends in infrastructure growth and potential barriers to widespread consumer adoption.

“Universally accessible, equitable, and reliable EV charging infrastructure is a cornerstone to widespread consumer adoption of EVs,” said Michael Berube, Deputy Assistant Secretary for Sustainable Transportation and Fuels in DOE’s Office of Energy Efficiency and Renewable Energy, in a press release from Argonne National Laboratory. ​“It is critical that we consistently evaluate detailed trends in the availability of public chargers, specific obstacles consumers face with the existing charging network, and regional variations in consumer demand to ensure resilient grid infrastructure, provide adequate EV charging capacity and coverage, and support access to EVs by all Americans.”

The JD Power EV Index tracks millions of data points aggregated into six categories—interest, availability, adoption, affordability, infrastructure and experience—to evaluate the progress to parity of EVs with internal combustion engine (ICE) vehicles in the U.S. Updated monthly, the EV Index has consistently found that lack of public charging infrastructure has been the top consumer barrier to EV adoption. Additionally, the EV Index illustrates widespread variation in availability and accessibility of charging infrastructure in different parts of the country.

“The EV space is moving so quickly that the major policy, strategy and regulatory decisions that are being made today have the power to dramatically alter the course of the future of the automobile,” said Doug Betts, president of the JD Power automotive division. “We created the EV Index to help key stakeholders make informed decisions based on the most comprehensive data available tracking EV adoption, affordability, infrastructure and several other factors that provide a complete view of the EV landscape in real-time. Infrastructure data at a ZIP code level can be used as effective building blocks to measure the progress of infrastructure creation for many different participants.”

DOE research using the JD Power EV Index will be led by Argonne National Laboratory, a multidisciplinary science and engineering research center managed by UChicago Argonne, LLC for the U.S. Department of Energy’s Office of Science.

“Combined with Argonne’s technical data and analysis, JD Power data on EV-related consumer behavior will help Argonne and DOE advance the understanding of the current EV user and charging landscape,” said Claus Daniel, Argonne associate laboratory director for advanced energy technologies. “This understanding will support decision-making that moves the nation closer to its clean transportation and climate goals.”

For more information about the JD Power EV Index, visit https://www.jdpower.com/business/evindex.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

About Argonne National Laboratory
Argonne National Laboratory seeks solutions to pressing national problems in science and technology. The nation’s first national laboratory, Argonne conducts leading-edge basic and applied scientific research in virtually every scientific discipline. Argonne researchers work closely with researchers from hundreds of companies, universities, and federal, state and municipal agencies to help them solve their specific problems, advance America’s scientific leadership and prepare the nation for a better future. With employees from more than 60 nations, Argonne is managed by UChicago Argonne, LLC for the U.S. Department of Energy’s Office of Science.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Argonne National Laboratory; 630-252-5580; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

 

Don’t Forget! Having Memory Seats in Vehicles Boosts Satisfaction, JD Power Finds

2023-08-09

jillian.breska

TROY, Mich.: 10 Aug. 2023 — Although it is common for mass market car brands to lag when it comes to fully integrating the technologies and vehicle components of premium brands, memory seats for mass market is further lagging, according to the JD Power 2023 U.S. Seat Quality and Satisfaction Study,^SM released today. Additionally, power adjusting seats provide a good boost in overall satisfaction, an important component to vehicles, as manually adjusting seats bring more problems as well.

“The mass market segment trends follow that of premium,” said Ashley Edgar, senior director of global automotive supplier benchmarking and alternative mobility at JD Power. “Since mass market vehicles typically follow the trends of premium vehicles mass market brands have the ability to benchmark what premium brands do well and, as the automotive industry continues to innovate, this is an opportunity to deliver seat features in a more intuitive, less problematic way.”

Seat quality is measured by the number of problems and level of satisfaction experienced per 100 vehicles (PP100) during the first 90 days of ownership, with a lower score reflecting higher quality.

The 2023 U.S. Seat Quality and Satisfaction Study is based on responses from 93,380 purchasers and lessees of new 2023 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through May 2023.

For more information about the U.S. Seat Quality Satisfaction Study, visit https://www.jdpower.com/business/automotive/us-seat-quality-and-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Public Charging Issues May Short-Circuit EV Growth, JD Power Finds

2023-08-15

jillian.breska

TROY, Mich.: 16 Aug. 2023 — While automakers continue to introduce new electric vehicles (EVs) and experience growth in market share, the beleaguered public vehicle charging infrastructure has not kept pace. If anything, it is falling further behind. The recent move to open Tesla Superchargers to non-Tesla owners could improve the situation, but such effort might not be the answer that some suggest, as overall satisfaction continues to decline, according to the JD Power 2023 U.S. Electric Vehicle Experience (EVX) Public Charging Study,^SM released today.

Despite the increase in public charging stations across the United States, customer satisfaction with public Level 2 charging has declined to 617 (on a 1,000-point scale), 16 points lower than a year ago and the lowest level since the study began in 2021. Though purported to be the wave of the future, satisfaction with DC (direct current) fast chargers has declined even further, dropping 20 points to 654. More troubling is that satisfaction in both charging station segments has declined in nearly every attribute measured in the study. Since consumer skepticism regarding public charging availability is the primary reason vehicle shoppers reject EVs, this performance could prove to be a further hindrance to EV acceptance.

“The declining customer satisfaction scores for public charging should be concerning to automakers and, more broadly, to public charging stakeholders,” said Brent Gruber, executive director of the EV practice at JD Power. “The availability of public charging stations is still a critical obstacle, but it isn’t the only one. EV owners continue to have issues with many aspects of public charging, as the cost and speed of charging and the availability of things to do while waiting for their vehicle to charge are the least satisfying aspects. At the same time, the reliability of public chargers continues to be a problem. The situation is stuck at a level where one of every five visits ends without charging, the majority of which are due to station outages.”

Tesla owners are relatively satisfied with the Tesla Supercharger network (745), but when they go outside the network to use other public charging options, satisfaction declines by nearly 200 points (550). “With greater adoption of the North American Charging Standard (NACS) pioneered by Tesla, it may provide a boost in fast-charging satisfaction among owners of EVs from other brands as they begin to use Tesla’s Supercharger stations,” Gruber said. “We’re monitoring whether the use of Tesla Superchargers by non-Tesla owners will affect satisfaction, but the move does help address charger scarcity and offer access to industry-leading reliable chargers. It’s just too early to tell if it can reach the satisfaction levels of Tesla owners who are already part of that fully integrated Tesla ecosystem.”

Following are key findings of the 2023 study:

• Satisfaction with charging speed declines: EV owners are increasingly dissatisfied with the amount of time it takes to charge their vehicles. The attribute for speed of charging has the most significant negative effect on overall Level 2 satisfaction, decreasing 36 points year over year to 455. Interestingly, those using DC fast chargers don’t fare much better as satisfaction with the speed of charging declines 30 points to 588.
• Public chargers must be placed in appropriate locations: The reasons EV owners cite for choosing a Level 2 or a DC fast charger and the time they spend at the charger clearly indicate that public chargers should be located where they will most effectively serve their customers. Convenience is desired by both Level 2 and DC fast charger users, but DC fast charger users indicate a planned road trip is also a key reason for selection. DC fast charger users spend approximately 30 minutes charging their vehicle, preferring to get back on the road as soon as possible. “The data suggests that DC chargers—which charge faster—should be located along travel routes, while Level 2 chargers—essentially used for convenience charging—should be easily accessible near places where EV owners may already be visiting such as retail venues and entertainment venues,” Gruber said.
• Non-charge visits remain an issue, and results differ by geographic location: The study finds that 20% of all users say they visited a charger but did not charge their vehicle. Reasons range from the charger being inoperable to long lines to use the charger. EV owners in the Miami-Port St. Lucie-Ft. Lauderdale Combined Statistical Area (CSA) had the worst experience in this regard, with 35% of visits failing to result in charging. The CSAs in Seattle-Tacoma, Denver-Aurora and Dallas-Ft. Worth each had 29% of visits failing to result in a charge. The Cleveland-Akron-Canton CSA had the lowest percentage of failed visits with a charging failure rate of 12%.

“The results of this year’s study should be very concerning to all those involved in the transition from gas-powered vehicles to electric vehicles,” Gruber said. “Although the majority of EV charging occurs at home, public charging needs to provide a much better experience across the board—not just for the users of today, but also to alleviate the concerns of skeptical future customers. A lot of work is underway to address these issues but there is certainly much more work to be done.”

Study Rankings

Volta ranks highest among Level 2 charging stations, with a score of 665. Tesla Destination (661) ranks second and ChargePoint (618) ranks third.

Tesla Supercharger ranks highest among DC fast chargers for a third consecutive year, with a score of 739. It is the only DC fast charger brand to rank above segment average.

The study, now in its third year, measures EV owners’ satisfaction with two types of public charge point operators: Level 2 charging stations and DC fast charger stations. Satisfaction is measured across 10 factors (in order of importance): ease of charging; speed of charging; physical condition of charging station; availability of chargers; convenience of this location; things to do while charging; how safe you feel at this location; ease of finding this location; cost of charging; and ease of payment.

The 2023 U.S. Electric Vehicle Experience (EVX) Public Charging Study is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. The study examines consumer attitudes, behaviors and satisfaction, setting the standard for benchmarking the overall experience of public EV charging. Respondents included 15,079 owners of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The study was fielded from January through June 2023.

For more information about the U.S. Electric Vehicle Experience (EVX) Public Charging Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-public-charging-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

About PlugShare
Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over one million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 63,000 members.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Owners’ Experience with BEV Advanced Tech More Problematic Than with ICE Vehicles, JD Power Finds

2023-08-21

jillian.breska

TROY, Mich.: 24 Aug. 2023 — Battery-electric vehicle (BEV) owners experience more problems with advanced technology than do owners of internal combustion engine (ICE) vehicles, according to the JD Power 2023 U.S. Tech Experience Index (TXI) Study,^SM released today. The study focuses on the user experience with advanced vehicle technology as it first comes to market and is an early measure of problems encountered by vehicle owners.

Seventeen of the 21 advanced features offered on both fuel versions have more quality problems per 100 vehicles (PP100) for BEVs (excluding Tesla) than for ICE vehicles. In addition, satisfaction is lower for BEVs across 86% of the advanced techs compared with those on ICE vehicles. Features such as remote parking assistance (27.4 PP100 among BEVs vs. 10.7 PP100 among ICE vehicles) and interior gesture controls (49.6 PP100 among BEVs vs. 31.2 PP100 among ICE vehicles) have some of the largest gaps between the two fuel versions.

These study findings also are consistent across the JD Power 2023 Initial Quality Study^SM (IQS) and 2023 Automotive Performance, Execution and Layout (APEAL) Study.^SM The total vehicle problems in the IQS is 46% higher among BEVs (excluding Tesla) than ICE vehicles and satisfaction is lower among owners of BEVs across nine of 10 APEAL categories than among owners of ICE vehicles.

“Innovation through a strong advanced tech strategy is crucial for all vehicle manufacturers, especially those working to build their reputation in the electric vehicle space,” said Kathleen Rizk, senior director of user experience benchmarking and technology at JD Power. “The perception in the industry is that most BEVs should offer many advanced technologies to compete with high-tech entrants like Tesla. Success will be dependent on those manufacturers that can execute flawlessly, while ensuring the user experience is the same for those who are tech savvy and those who are not.”

Following are key findings of the 2023 study:

• Warning bells—disruptors are coming: New manufacturers (e.g., Tesla, Rivian, Lucid and Polestar) are making a very strong debut in the U.S. market in terms of their advanced tech offerings. While some brands have small sample sizes and state registration restrictions prohibit ranking, most of the innovation of these newer brands far exceeds that of traditional manufacturers—except for Genesis—and significantly outpace the Innovation Index premium average (588 on a 1,000-point scale). Innovation and tech offerings are high for new manufacturers, but they are not providing a problem-free experience. Average problem levels for advanced technologies among new manufacturers, except for Polestar, are well above the premium average of 24.3 PP100 and are among the highest in the industry.
• Owners don’t see eye-to-eye with biometrics: In terms of accuracy, biometrics that monitor behavioral characteristics (e.g., eye movement) are less problematic than those that monitor physiological characteristics (e.g., facial recognition) but are more annoying. Regardless of the biometric type, owners say they do not consider them to be useful (fingerprint reader rating of 7.24 (on a 10-point scale); facial recognition 7.48; and direct driver monitoring 7.75). Despite continued usage, biometric technologies have low desirability in terms of owners wanting them in their next vehicle compared with other advanced technologies.
• Owners charged up about plug and charge: The plug-and-charge technology is well liked by owners even though new tech in BEVs can often be problematic. After plugging into a public charger, the charger identifies the vehicle, validates the charge and starts the charging process. Payment and billing occur automatically upon completion of the charge. Nearly three-fourths (72%) of owners say they want the technology on their next vehicle. With just 6.0 PP100 and overall satisfaction of 8.89 (on a 10-point scale) across the industry, plug and charge is well executed across most manufacturers and vehicle owners say that it is a much-appreciated feature.
• Waning ADAS usage: Among owners who say they use specific technologies all the time, usage of many safety and advanced driver assist systems (ADAS) technologies have declined slightly year over year, most notably reverse automatic emergency braking (-4 percentage points); safe exit assist (-3); and automatic emergency steering (-3). While usage rates are still relatively high, small declines across several technologies is a worrying sign that reinforces the need for automakers to remain diligent on providing a positive customer experience so that trust and perceived feature usefulness are not negatively affected.

Highest-Ranking Brands

Genesis ranks highest overall and highest among premium brands for innovation, with a score of 656. In the premium segment, Cadillac (533) and Lexus (533) each rank second in a tie.

Hyundai ranks highest among mass market brands for innovation with a score of 547. Kia (528) ranks second and GMC (505) ranks third.

Advanced Technology Award Recipients

The U.S. Tech Experience Index (TXI) Study analyzes 40 automotive technologies, which are divided into four categories: convenience; emerging automation; energy and sustainability; and infotainment and connectivity. Only the 30 technologies classified as advanced are award eligible.

• Chevrolet Corvette is the premium model receiving the convenience award for ground view camera technology. Toyota Sequoia is the mass market model receiving the convenience award, also for ground view camera technology.
• Genesis GV80 is the premium model receiving the emerging automation award for front cross traffic warning. Hyundai Palisade is the mass market model receiving the emerging automation award for reverse automatic emergency braking.
• BMW iX receives the award for energy and sustainability in the premium segment for one pedal driving. MINI Cooper receives the award for energy and sustainability in the mass market segment, also for one pedal driving.
• BMW 3 Series receives the award for infotainment and connectivity in the premium segment for augmented reality display. Chevrolet Tahoe (streaming-based entertainment) and Hyundai Sonata (phone-based digital key) each rank highest in a tie for infotainment and connectivity in the mass market segment.

The 2023 U.S. Tech Experience Index (TXI) Study is based on responses from 82,472 owners of new 2023 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from February through May 2023.

The U.S. Tech Experience Index (TXI) Study complements the annual JD Power U.S. Initial Quality Study (IQS) and the JD Power U.S. Automotive Performance, Execution and Layout (APEAL) Study by measuring how effectively each automotive brand brings new technologies to market. The U.S. Tech Experience Index (TXI) Study combines the level of adoption of new technologies for each brand with excellence in execution. The execution measurement examines how much owners like the technologies and how many problems they experience while using them.

For more information about the U.S. Tech Experience Index (TXI) Study, visit https://www.jdpower.com/business/automotive/us-tech-experience-index-txi-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

 

Fifth Consecutive Month of Double-Digit Sales Growth Sees New-Vehicle Sales up 15.4%, Record Consumer Spend for August

2023-08-23

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for August 2023, including retail and non-retail transactions, are projected to reach 1,354,600 units, a 15.4% increase from August 2022, according to a joint forecast from JD Power and GlobalData. August 2023 has 27 selling days, one more than August 2022. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 19.9% from a year ago.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 15.3 million units, up 2.1 million units from August 2022.

The Retail Sales Forecast

New-vehicle retail sales for August 2023 are expected to increase when compared with August 2022. Retail sales of new vehicles this month are expected to reach 1,108,800 units, a 10.4% increase from August 2022 when selling day adjusted. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 14.6% from 2022.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“August feels like another rinse-and-repeat month as the industry continues its pace of double-digit sales growth for a fifth consecutive month. This is facilitated by incremental increases in vehicle production and leveraging continued strong demand from fleet customers. Year-to-date total sales through August will be slightly more than 10.3 million units—an increase of 14.4% from a year ago—but still below pre-pandemic sales levels, which were north of 11.4 million.

“As sales volumes improve, the average new-vehicle retail transaction price is declining modestly, trending down $566 or 1.2% from August 2022, to $45,537. The decline mostly is due to an increase in sales of smaller vehicle segments that have inherently lower transaction prices. However, even with the decline in average transaction prices, consumers are on track to spend nearly $47.8 billion on new vehicles this month—the highest on record for the month of August and 10.5% higher than August 2022.”

Retail inventory levels in August are expected to finish around 1.3 million units, an increase from July 2023 and a large increase of 48.4% compared with August 2022, but still well below pre-pandemic levels.

Sales to fleet customers are still elevated as manufacturers leverage higher vehicle production to allocate more vehicles to those fleet customers. Fleet sales are projected to increase 45.6% from August 2022.

“The increased vehicle supply and elevated interest rates have led to a decline in dealer profits—but those profits still exceed pre-pandemic levels. The total retailer profit per unit—which includes grosses, finance and insurance income—is expected to reach $3,534 in August. While this is 26.4% lower than a year ago, it is still nearly triple the amount in August 2019. The primary reason for the decline in profit is that fewer vehicles are being sold for prices higher than the manufacturer’s suggested retail price (MSRP). This month, only 28.5% of new vehicles are projected to be sold above MSRP, which is down from 46.8% in August 2022.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be down 16.8% from August 2022, reaching $3.7 billion for the third-highest August on record.

“Retailers continue to sell vehicles before they physically arrive at the dealership. However, with increased inventory levels, more shoppers are now able to purchase vehicles from dealer lots. In August, 45% of vehicles are projected to be sold within 10 days of their arrival at the dealership, which is down from the peak of 57% in March 2022. The average time that a new vehicle spends in the dealer’s possession before being sold is expected to be 28 days, up from 19 days a year ago, but still less than half the pre-pandemic average of 70 days.

“Manufacturer discounts in August are expected to be relatively flat when compared with July but have increased materially from a year ago when incentives were at record lows. The average incentive spend per vehicle has doubled from August 2022 and is currently on track to reach $1,902. Expressed as a percentage of MSRP, incentive spending is currently trending at 4%, an increase of 1.9 percentage points from August 2022. It is noteworthy that discounts on leased vehicles have risen in recent months. This month, leasing is expected to account for 20% of retail sales, up significantly from 16% in August of 2022, but still well below August 2019 when leased vehicles made up nearly 30% of all new-vehicle retail sales.

“Elevated pricing coupled with interest rate increases continue to inflate monthly loan payments. The average monthly finance payment in August is on pace to be $729, up $19 from August 2022. That translates to a 2.7% increase in monthly payments from a year ago. The average interest rate for new-vehicle loans is expected to be 7.3%, an increase of 182 basis points from a year ago.

“Used-vehicle prices have declined slightly from a year ago but remain close to all-time highs. The average trade-in equity for August is trending toward $9,101, down $780 from a year ago. For context, trade-in equity this month is still double the pre-pandemic level, helping owners offset some of the pricing and interest rate increases.

“In September, the main focus will be on any potential work stoppages that could hinder production. A disruption in production could create more asymmetry in the market and potentially extend the overall tight supply situation currently in place. This would give support to new-vehicle pricing but also keep used-vehicle values high. Thereby trade-in values could remain elevated longer continuing to help consumers offset higher interest rates and pricing.”

Sales & SAAR Comparison

U.S. New Vehicle	August 20231, 2	July 2023	August 2022
Retail Sales	1,108,830 units (10.4% higher than August 2022)2	1,078,907 units	967,472 units
Total Sales	1,354,615 units (15.4% higher than August 2022)2	1,302,746 units	1,130,049 units
Retail SAAR	11.7 million units	12.7 million units	10.5 million units
Total SAAR	15.3 million units	15.8 million units	13.2 million units

¹ Figures cited for August 2023 are forecasted based on the first 17 selling days of the month.
² August 2023 has 27 selling days, one more than August 2022.

The Details

• The average new-vehicle retail transaction price in August is expected to reach $45,537, down $566 from August 2022. The previous high for any month—$47,362—was set in December 2022.
• Average incentive spending per unit in August is expected to reach $1,902, up from $953 in August 2022. Spending as a percentage of the average MSRP is expected to increase to 4%, up 1.9 percentage points from August 2022.
• Average incentive spending per unit on trucks/SUVs in August is expected to be $1,971, up $831 from a year ago, while the average spending on cars is expected to be $1,627, up $638 from a year ago.
• Retail buyers are on pace to spend $47.8 billion on new vehicles, up $5 billion from August 2022.
• Truck/SUVs are on pace to account for 78.6% of new-vehicle retail sales in August.
• Fleet sales are expected to total 245,785 units in August, up 45.6% from August 2022 on a selling day adjusted basis. Fleet volume is expected to account for 18.1% of total light-vehicle sales, up from 14.4% a year ago.
• Average interest rates for new-vehicle loans are expected to increase to 7.3%, 182 basis points higher than a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“With an EV Index score of 52 [on a 100-point scale], EVs are more than halfway to achieving parity with gas-powered vehicles. Affordability remains the highest-scoring factor at 97, driven by aggressive pricing from Tesla. The three factors of interest, availability and adoption show modest improvement and infrastructure remains flat. Experience declines 1.4 points, evidenced in the recent Initial Quality Study as EV owners had more problems with their new vehicles than owners of gas-powered vehicles.

“Although the affordability factor is approaching parity, it is skewed by the premium market, driven largely by Tesla’s 63% EV market share—and their continual price cuts. In the high-volume segments like compact SUV and large pickup-light duty, affordability scores are at 80. The glaring hole is that no EV options exist in the huge midsize SUV segment.

“EV retail market share—8.5%—was flat in July, however, it’s expected to reach 9% by year’s end, according to the new JD Power EV Retail Share Forecast. Updated twice a year, the forecast projects EV retail share by segment, by state and by designated market area (DMA). For example, 2035 forecast shows increasingly uneven adoption rates across the country, with California projected to reach 94% EV retail share and North Dakota projected to be less than 20%.”

Global Sales Outlook

Jeff Schuster, group head and executive vice president, automotive at GlobalData:
“The global light-vehicle selling rate rose for the fifth consecutive month in July, reaching 96.3 million units and outperforming expectations from the beginning of the month. While year-over-year growth continues, global light-vehicle sales volume in July increased a moderate 7.2% from July 2022, following a run of stronger growth during previous months. China took a backseat in July, posting a decline of 3% from a year ago. Europe was up 25% and recovery in Eastern Europe (up 58%) was substantial. The growth trend in North America remained consistent, up 15% year over year.

“The strong selling rate is expected to continue into August, but the selling rate is projected to dip to 89 million units. Volume is forecast to be flat at 7.6 million units, with volume from August 2022, as the 12% year-over-year decline in China is expected to accelerate from the tax-incentive boost last August.

“The global automotive market remains resilient and the outlook for 2023 has been increased from 86.4 million units to 86.8 million units, an increase of 7% from 2022. Supporting this improvement, the effects of production and supply disruption continues to improve. The estimated disruption to volume globally in 2023 has been cut to 3.4 million units from 3.8 million in June and that is less than half of the disruption of 8.2 million units in 2022. Looking into 2024, the forecast for global light-vehicles in 2024 is holding at 90.2 million units.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info
About GlobalData https://www.globaldata.com/

 

Action Needed to Keep Charging from Short Circuiting EV Purchase Consideration, JD Power Finds

2023-06-14

jillian.breska

TROY, Mich.: 15 June 2023 — As automotive manufacturers pour billions of dollars into their electrification strategies and roll out new fully electric vehicles (EVs), new-vehicle buyer consideration is increasing, albeit slowly, according to the JD Power 2023 U.S. Electric Vehicle Consideration (EVC) Study,^SM released today. This year’s study reveals that 26% of shoppers say they are “very likely” to consider purchasing an EV, up from 24% a year ago, while the percentage of shoppers who say they are “overall likely” to consider purchasing an EV increases to 61% from 59% in 2022.  

Influencing the modest year-over-year increases are a combination of positive and negative market factors: lower gas prices, inflation, rising interest rates, greater model availability and charging availability. Charging availability is growing more slowly year over year (13% vs. 33% in 2022), while model availability has increased, with 42% of buyers now having a viable EV model that meets their needs.

“With all of these influences shaping today’s EV market, the biggest friction point for consideration is the availability of public chargers,” said Stewart Stropp, executive director of EV intelligence at JD Power. “The growth in public charging isn’t keeping pace with the rising number of EVs on the road. While owners are impressed by what automakers are offering, they’re also thinking about how, when and where they’ll be able to charge their vehicles away from home. A resounding effort to build out and improve the public charging infrastructure will emphatically increase EV purchase consideration.”

Nearly half (49%) of shoppers rejecting the idea of buying an EV say their primary reason is a lack of charging station availability. Charging availability has been the top reason for rejection since the inception of the study in 2021. In fact, across all JD Power EV studies, public charging infrastructure consistently scores low in satisfaction. “Most EV owners will say charging is one of the greatest benefits of ownership, because 85% of it is done at home,” Stropp said. “But it’s the exceptional use case—like a vacation road trip—that’s holding shoppers back. Proactively taking ownership of the public charging experience is a huge opportunity for automakers to differentiate. The recent announcements by Ford and GM to establish a charging collaboration with Tesla are particularly noteworthy.”

Following are some key findings of the 2023 study:

• Longer commutes mean increased consideration: The more miles that vehicle owners drive, the more likely they are to consider an EV. As in prior-year studies, daily commuters faced with higher fuel expenses are trading in their gas-powered vehicles for EVs. Among those who commute more than 45 minutes each way, 35% say they are “very likely” to consider an EV, which is 14 percentage points higher than among those with a commute of 15 minutes or less (21%).
• EV experience helps with purchase consideration: Getting consumers into an EV plays an important role in purchase consideration. Just 12% of consumers who have no personal experience with an EV say they’re “very likely” to consider one, while that percentage more than doubles to 25% among those who have simply ridden in an EV as a passenger. The ratios continue to climb in proportion to shoppers’ experience with EVs, with a response of “overall likely” reaching 80% among those who have owned or leased an EV in the past.
• EV consideration grows with owners looking to replace their vehicle: Among owners looking to replace their current vehicle, the percentage of those who say they are “very likely” to consider an EV increases across all powertrain types. Owners of plug-in electric vehicles (PHEVs) who say they are “very likely” to consider an EV increases 11 percentage points year over year, followed by battery electric vehicle (BEV) owners (6 percentage points); hybrid electric vehicle (HEV) owners (2 percentage points); and internal combustion engine (ICE) vehicle owners (2 percentage points).
• California leads in EV consideration: California has the highest percentage of shoppers (73.1%) who say they are “overall likely” to consider an EV and those who say they are “very likely” (40.5%) to consider an EV. New York ranks second in “very likely” at 33.7%.
• Gen Z¹ fastest-growing segment for EV consideration: As more affordable EV models come to market, consideration among Gen Z consumers shows a higher year-over-year increase (6 percentage points) than among other age groups. Gen Y consumers have the highest level of consideration (72%) and the highest percentage of those who say they are “very likely” to consider an EV (37%).
• EV consideration not limited to Tesla: While Tesla remains the most-considered EV brand, the three most-considered models are all from perennial full-line automakers—not Tesla. Notable, however, is that shoppers who are considering a Tesla say charging station availability is a greater reason to buy than among those who are considering other EV brands.

The U.S. Electric Vehicle Consideration (EVC) Study is an industry benchmark focusing on gauging fully electric or battery electric vehicle shopper consideration, simply referred to as EVs in the study. Study content includes overall EV consideration by geography; demographics; vehicle experience and use; lifestyle; and psychographics. It also includes model-level consideration details such as “why buy” findings and analysis of reasons for EV rejection. This year’s study measures responses from 8,136 consumers and was fielded from February through May 2023.

For more information about the U.S. Electric Vehicle Consideration (EVC) Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-consideration-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.