Category: AutomotiveUnited States

Public EV Charging Sees Consistent Progress for Two Consecutive Quarters, JD Power Finds

2024-08-13

jillian.breska

TROY, Mich.: 14 Aug. 2024 — The public electric vehicle (EV) charging infrastructure continues to be identified as a culprit in the unexpectedly slow adoption of EVs in the United States, but this year it is showing signs of improvement with overall satisfaction increasing for a second consecutive quarter. While the issue is a long way from being solved, the JD Power 2024 U.S. Electric Vehicle Experience (EVX) Public Charging Study,^SM released today, suggests the industry is on the right track despite continued challenges.

The number of public charging stations across the country continues to grow but hasn’t matched the rate of EV sales. During the past several years, the rise in the number of EVs per public charging station has contributed to a declining level of satisfaction with such chargers. This year, however, customer satisfaction with the two principal methods of public charging offers a hopeful sign.

In this year’s study, satisfaction with DC (direct current) fast chargers increases to 664 (on a 1,000-point scale), a 10-point increase from the same period in 2023. The rise is tempered by the finding that satisfaction with public Level 2 charging has declined to 614, which is 3 points lower than a year ago despite the recent quarterly improvements.

“While the customer satisfaction scores for public charging continue to prompt concern, the results offer reasons for optimism,” said Brent Gruber, executive director of the EV practice at JD Power. “Among users of Level 2 chargers, satisfaction improves in five of the 10 factors that make up overall satisfaction, and among DC fast charger users, satisfaction is up in six of the 10 categories. In addition, the overall indices have improved for the past two quarters. This indicates progress in many areas that EV owners care about, like the speed and availability of fast chargers and the convenience of having other things to do during longer Level 2 charging sessions.”

The fact that non-Tesla owners can now access the Tesla Supercharger network is one contributor to the increase in satisfaction with DC fast chargers. Previously, Tesla’s extensive network of its proprietary DC fast chargers was reserved exclusively for owners of Tesla vehicles but having qualified for access to multi-billion-dollar federal infrastructure funding has prompted the automaker to allow access to owners of other EVs. For the first time, the study has been able to quantify the effects, analyzing the responses of Tesla and non-Tesla EV owners in specific factors that influence satisfaction.

“Overall, both Tesla and non-Tesla owners find charging their vehicles at Tesla Supercharger facilities is most satisfying,” Gruber said. “Non-Tesla owners—like those with EVs from Ford or Rivian who now have access to the Supercharger network—appreciate the ability to charge at the broad network of Tesla chargers that was previously unavailable to them. Despite the recent influx of non-Tesla vehicles into the Supercharger facilities—which has caused some grumbling—Tesla owners still appreciate the ease of charging and ease of payment that the network offers. However, since the beginning of the year, JD Power has seen a decline in satisfaction with the availability of Superchargers among Tesla owners.”

Tesla owners remain satisfied with the Tesla Supercharger network, as evidenced by a score of 743, down just 2 points from 2023. Non-Tesla owners are not quite as satisfied when using a Tesla Supercharger (706), but that score is 42 points higher than the overall satisfaction with DC fast chargers. The biggest gaps between the satisfaction of Tesla and non-Tesla owners come in ease of payment and ease of charging. Tesla offers its owners a virtually automatic plug-and-pay ability not yet available to non-Tesla owners. Its Supercharger network is compatible with Tesla connectors, while current non-Tesla vehicles require the use of an adapter as part of the charging process.

Following are key findings of the 2024 study:

• Satisfaction with charging speed varies by charger type: EV owners seem to have less patience for Level 2 public charging, while simultaneously growing more satisfied with charging time at DC fast chargers. The attribute of speed of charging at Level 2 chargers has declined 4 points to 451 this year. EV owners are not especially happy with DC fast charger charge times either, but the attribute achieves a score of 622, up considerably from 588 in 2023. “DC fast charger speed is an important area of progress for the industry this year,” Gruber said. “All charge-point operators improve in this area, particularly some of the non-Tesla networks, which is good news for the developing charging landscape.”
• EV owners favor automatic payment: While those who drive conventional internal combustion engine (ICE) vehicles seem content to buy gasoline with a credit or debit card, EV owners are better satisfied by other payment methods. The most satisfying is using an automatic payment system, such as Plug & Charge, that identifies and authenticates the vehicle and connects it directly to billing, allowing EVs to connect to a charge point and immediately begin charging. Satisfaction for those systems is 886 for ease of payment and 806 for ease of charging. Satisfaction among owners who use a manufacturer’s mobile app is 860 for ease of payment and 787 for ease of charging. Satisfaction among EV owners using a credit or debit card is lowest in ease of use (631) and ease of charging (596). “The study shows that not only are fast charging sessions that utilize automatic payment systems more satisfying, but those sessions are also expedited by the streamlined process, saving EV owners precious time,” Gruber said. “Fast charging sessions utilizing automatic payment systems average 27 minutes in length, eight minutes faster than the extra steps required to pay with a credit or debit card, and seven minutes faster than third-party or charge point operator apps.”
• Non-charge visits remain an issue: The study finds that 19% of all EV owners say they visited a charger but were not able to charge their vehicle, a scant improvement of a single percentage point from 2023. Though the reasons for inability to charge vary somewhat by region, the predominant problem nationwide is the charger was out of service or just wouldn’t work, which affected 61% of the failed visits. Lack of charger availability and/or over-long wait times was an issue affecting 20% or more of EV owners who experienced failed charging visits in the Middle Atlantic, Pacific and East North Central regions. Damage to the cable or connector was another notable reason for a non-charge result, affecting 10% of owners who had a failed charging visit.

“While this year’s study points to hopeful signs that the industry is moving in the right direction, concerning issues remain,” Gruber said. “Too often public charging is not a satisfying experience for EV owners. One issue is sheer availability. Sadly, the growth of public chargers, and especially DC fast chargers that EV owners increasingly favor, is not keeping up with the number of EVs in service. Another concern is theft and vandalism. Some charger facilities are experiencing a high rate of cable damage or theft which, for example, account for 14% of charging failures in the Mountain region. This further exacerbates the issue.”

Study Rankings

Tesla Destination ranks highest among Level 2 charging stations, with a score of 658. Volta (645) ranks second and ChargePoint (626) ranks third.

Tesla Supercharger ranks highest among DC fast chargers for a fourth consecutive year, with a score of 731. Again, it is the only DC fast charger brand to rank above the segment average.

The U.S. Electric Vehicle Experience (EVX) Public Charging Study, now in its fourth 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 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 9,605 owners of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The study was fielded from January through June 2024.

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

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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 more than 7 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 more than 150,000 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

 

It’s Time Seat Manufacturers Get Heads in the Right Place, JD Power Finds

2024-08-14

jillian.breska

TROY, Mich.: 15 Aug. 2024 — Seat comfort and the headrest are two of the top four problem areas in the JD Power 2024 U.S. Seat Quality and Satisfaction Study,^SM released today. Vehicle seat manufacturers have worked diligently to improve seat quality and functionality, however, the headrest is one of the top problems for a fifth consecutive year, highlighting the need for adjustments is long overdue. When assessing seat comfort, owners who do not have issue with their headrest have an average of 1.0 problems per 100 vehicles (PP100), however, when people do indicate having an issue with a headrest, the indication of “seat excessively uncomfortable” climbs almost six times to 6.7 PP100.

“Headrest adjustability needs to be prioritized by seat manufacturers as it does have an effect on overall seat experience,” said Ashley Edgar, senior director of automotive benchmarking at JD Power. “As much as manufacturers can address many of the other aspects of seat quality, overall comfort is lost without a proper headrest.”

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

The 2024 U.S. Seat Quality and Satisfaction Study is based on responses from 99,144 purchasers and lessees of new 2024 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from July 2023 through May 2024.

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 automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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

 

Customers Favor AI-Based Technologies but Automakers May Not Have Best Advanced Tech Strategy, JD Power Finds

2024-08-21

jillian.breska

TROY, Mich.: 22 Aug. 2024 — Are vehicle owners becoming overwhelmed with technology features that don’t solve a problem, don’t work, are difficult to use or are just too limited in functionality? The results of the JD Power 2024 U.S. Tech Experience Index (TXI) Study,SM released today, suggest that could be the case. The study, which focuses on the user experience with advanced vehicle technologies as they come to market, finds that while owners offer praise for some advanced features, others are found to be lackluster.

New Artificial Intelligence (AI)-based technologies, like smart climate control, have quickly won popularity with those owners who have used it, yet recognition technologies such as facial recognition, fingerprint reader and interior gesture controls fall out of favor as they unsuccessfully try to solve a problem that owners didn’t know they had. For example, not only do owners say that interior gesture controls can be problematic (43.4 problems per 100 vehicles), but 21% of these owners also say this technology lacks functionality, according to newly added diagnostic questions in this year’s study. These performance metrics, including a lack of perceived usefulness, result in this technology being considered a lost value for any automaker that has invested millions of dollars to bring it to market.

To assist in solving this problem, JD Power has developed a return on investment (ROI) analysis as part of the TXI findings to use advanced data science to cluster individual technologies into three categories. The categorization of technologies—must have, nice to have and not necessary—provide automakers the ability to better align their contenting strategy with customer expectations.

“A strong advanced tech strategy is crucial for all vehicle manufacturers, and many innovative technologies are answering customer needs,” said Kathleen Rizk, senior director of user experience benchmarking and technology at JD Power. “At the same time, this year’s study makes it clear that owners find some technologies of little use and/or are continually annoying. JD Power’s ability to calculate the return on investment for individual technologies is a major step in enabling carmakers to determine the technologies that deserve the most attention while helping them ease escalating costs for new vehicles.”

Following are some of the key findings of the 2024 study:

• Drivers still prefer hands-on tech—hands down: Despite the increasing availability of advanced driver assistance systems (ADAS), many owners remain indifferent to their value. Most owners appreciate features that directly address specific concerns, such as visual blind spots while backing up. However, other ADAS features often fall short, with owners feeling capable of handling tasks without them. This is particularly evident with active driving assistance, as the hands-on-the-wheel version ranks among the lowest-rated ADAS technologies with a low perceived usefulness score (7.61 on a 10-point scale). The hands-free, more advanced version of this tech does not significantly change the user experience as indicated by a usefulness score of 7.98, which can be attributed to the feature not solving a known problem.

• Owners don’t see value in passenger screens: Automakers are expanding their offering of vehicles containing a passenger display screen despite the feature being classified as “not necessary” by vehicle owners. The tech is negatively reviewed by many owners who point to usability issues. Perhaps the technology would be viewed more favorably if the front passenger seat was used more frequently, but only 10% of vehicles carry front-seat passengers daily. Furthermore, the addition of a second screen adds to the complexity of the vehicle delivery process as it is difficult for dealers to teach new owners how to use the primary infotainment screen, let alone a second one.

• Tesla might be losing its tech edge: Historically, Tesla owners have expressed enthusiasm for the brand’s technology and rated their vehicles highly, often overlooking quality concerns. However, as Tesla’s customer base expands beyond tech-hungry early adopters, this trend is waning as this year’s results show a shift to lower satisfaction across some problematic techs such as direct driver monitoring (score of 7.65).

Highest-Ranking Brands

Genesis ranks highest overall and highest among premium brands for innovation for a fourth consecutive year, with a score of 584 (on a 1,000-point scale). In the premium segment, Lexus (535) ranks second and BMW (528) ranks third.

Hyundai ranks highest among mass market brands for innovation for a fifth consecutive year, with a score of 518. Kia (499) ranks second and GMC (439) 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 31 technologies classified as advanced are award eligible.

• Toyota Sequoia is the mass market model receiving the convenience award for its camera rear-view mirror technology. The premium segment in this category is not award eligible.

• Genesis GV70 is the premium model receiving the emerging automation award for front cross traffic warning. Kia Carnival is the mass market model receiving the emerging automation award, also for front cross traffic warning.

• BMW iX receives the award for energy and sustainability in the premium segment for one-pedal driving. The mass market segment in the energy and sustainability category is not award eligible.

• BMW X6 receives the award for infotainment and connectivity in the premium segment for phone-based digital key. Hyundai Santa Fe receives the award for infotainment and connectivity in the mass market segment, also for phone-based digital key.

The 2024 U.S. Tech Experience Index (TXI) Study is based on responses from 81,926 owners of new 2024 model-year vehicles who were surveyed after 90 days of ownership. The study was fielded from July 2023 through May 2024 based on vehicles registered from April 2023 through February 2024.

The U.S. Tech Experience Index (TXI) Study complements the annual JD Power U.S. Initial Quality Study ^SM (IQS) and the JD Power U.S. Automotive Performance, Execution and Layout (APEAL) Study ^SM 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/us-tech-experience-index-txi-study.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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

 

August Sales to Get Boost from Labor Day Retail Sales Surge; Inventory Also Rebounding

2024-08-29

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for August 2024, including retail and non-retail transactions, are projected to reach 1,437,954, a 4.2% increase from August 2023 on a selling day adjusted basis, according to a joint forecast from JD Power and GlobalData. August 2024 has 28 selling days, one more than August 2023. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 8.1% from 2023.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 15.3 million units, down 0.1 million units from August 2023.

The Retail Sales Forecast

New-vehicle retail sales for August 2024 are expected to increase from a year ago. Retail sales of new vehicles are expected to reach 1,209,800, a 6.8% increase from August 2023 when adjusting for selling days. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 10.8% from 2023.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“New-vehicle sales in August are up from a year ago, as expected. A key element of the improvement is that this year, the Labor Day holiday weekend falls within the August sales reporting period instead of September where it normally falls.

“While the sales results for August will be positive, the seasonally adjusted annualized rate (SAAR), which corrects for Labor Day timing, is relatively modest at just 15.3 million units.

The modest August SAAR reflects the trade-off between key factors: discounts from dealers and manufacturers are rising while average transaction prices are falling. As a result, the sales pace should improve. However, inventory—while rising for the industry as a whole—remains lean for some high-volume brands, which is limiting their sales pace. In addition, used-vehicle values continue to fall, which means buyers returning to showrooms have less equity in their trade-ins.

“Furthermore, the industry is still grappling with the effects of reduced leasing activity from three years ago. Fewer leases signed then mean fewer lessees are returning to dealers to purchase or lease a new vehicle today. The number of expiring leases decreased 8.4% from July and decreased 16% from August 2023. With fewer lease customers returning to the market, there are fewer opportunities for new sales.

Retail inventory is projected to be around 1.7 million units, a 4.2% recovery from July and a 43.5% increase from August 2023.

“The average new-vehicle retail transaction price is declining from a year ago due to higher manufacturer incentives, larger retailer discounts and rising availability of lower-priced vehicles. Transaction prices are trending towards $44,039—down $1,895 or 4.1%—from August 2023. The combination of higher retail sales and lower transaction prices means that buyers are on track to spend nearly $50.7 billion on new vehicles this month— 6.3% higher than August 2023.

“Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,249, down 33% from August 2023. Rising inventory is the primary factor behind the profit decline and fewer vehicles are selling above the manufacturer’s suggested retail price (MSRP). Thus far, only 13.0% of new vehicles have been sold above MSRP, which is down from 31.2% in August 2023.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.6 billion, down 26% from August 2023.

“Increased inventory means fewer vehicles are being pre-sold by retailers, with more shoppers able to buy directly off dealer lots. JD Power forecasts that 30.8% of vehicles will sell within 10 days of arriving at the dealership, down from a peak of 58% in March 2022. The average time a new vehicle remains in the dealer’s possession before sale is expected to be 49 days, up from 21 days a year ago.”

Manufacturer discounts are continuing to rise. The average incentive spend per vehicle has grown 59.5% from August 2023 and is currently on track to reach $3,035. Expressed as a percentage of MSRP, incentive spending is currently at 6.2%, an increase of 2.3 percentage points from a year ago. Spending has increased by $18 per unit from July 2024. 

“One of the drivers of higher incentive spending from a year ago is the increased availability of lease discounts. This month, leasing is expected to account for 24.2% of retail sales, up 3.8 percentage points from 20.4% in August 2023.”

Average monthly finance payments this month are on pace to be $729, up $4 from August 2023. The average interest rate for new-vehicle loans is expected to be 6.87%, down 36 basis points from a year ago.

So far in August, average used-vehicle retail prices are $27,999, reflecting a decrease of 4.5%—down $1,311—from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending towards $7,774, which is down $1,433 from a year ago.

“In September, sales volumes are expected to be lighter than the previous year due to the Labor Day holiday weekend falling within the August sales reporting period. With that, all eyes will be on interest rates and the anticipated changes that could help new vehicle affordability through the end on the year.”

Sales & SAAR Comparison

U.S. New Vehicle	August 20241, 2,	July 2024	August 2023
Retail Sales	1,209,751 units (6.8% higher than August 2023)2	1,070,184 units	1,091,854 units
Total Sales	1,437,954 units (4.2% higher than August 2023)2	1,298,114 units	1,330,159 units
Retail SAAR	12.1 million units	12.9 million units	11.8 million units
Total SAAR	15.3 million units	16.1 million units	15.4 million units

¹ Figures cited for August 2024 are forecasted based on the first 15 selling days of the month.
² August 2024 has 28 selling days, one more than August 2023.

The Details

• The average new-vehicle retail transaction price in August is expected to reach $44,039, down $1,895 from August 2023. The high for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in August is expected to reach $3,035, up $1,132 from August 2023. Spending as a percentage of the average MSRP is expected to increase to 6.2%, up 2.3 percentage points from August 2023.
• Average incentive spending per unit on trucks/SUVs in August is expected to be $3,234, up $1,254 from a year ago, while the average spending on cars is expected to be $2,242, up $639 from a year ago.
• Retail buyers are on pace to spend $50.7 billion on new vehicles, up $3.0 billion from August 2023.
• Trucks/SUVs are on pace to account for 80.0% of new-vehicle retail sales in August.
• Fleet sales are expected to total 228,202 units in August, down 7.7% from August 2023. Fleet volume is expected to account for 15.9% of total light-vehicle sales, down 2.0 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to be 6.87%, down 36 basis points from a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“The JD Power EV Index, which tracks the path to parity of EVs with gas-powered vehicles, reached a historic high score in July of 56 on a 100-point scale. July marked the fifth consecutive month that the EV Index rose but it’s the six factors that make up the index that tell the real story of the EV ecosystem’s dynamics.

“One factor—interest—reached a high for the year with 28% of new-vehicle shoppers saying they are ‘very likely’ to consider a battery electric vehicle for their next purchase, but the industry seems to be struggling to attract more buyers than a year ago, even with the tremendous improvements in another factor, availability. Availability has increased 22 points year over year, with 66% of shoppers now having a viable alternative to a gas-powered equivalent.

“Incentives have helped align prices in popular compact and midsize mass market segments, making them more affordable. Mass market and premium BEVs are at and above parity with gas-powered alternatives—from a total cost of ownership standpoint—and this is driven by aggressive manufacturer incentives; federal and state incentives; and lower operating costs. BEV monthly retail sales have held steady at 9.2% of the market for two consecutive months. While infrastructure remains insufficient, customer satisfaction with charging in the second quarter improved for a second consecutive quarter. Especially noteworthy is the satisfaction experienced by Ford and Rivian owners now having access to the Tesla charging network. An increase in the transition to EVs will take time, with several interdependent variables affecting adoption, but the foundation is growing as consumers try to match vehicle options with their lifestyle.”

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“The global light-vehicle selling rate rose again in July 2024, increasing 200,000 units from June to 89.9 million units. While the sales pace remains at a healthy level, July decreased from 92.2 million units in July 2023 as the early inventory recovery supported pent-up demand a year ago.

“Volume declined for the second consecutive month, with July falling 1.6% from July 2023. Year-to-date sales volume through July reached 49.3 million units, marking a 1.7% increase from year-to-date July 2023. Sales performance in July was mixed, with some key markets showing weakness compared with the previous year. The domestic market in China experienced the largest decline, falling 10.3%. Posting declines were India (-3.3%), South Korea (-2.8%), the United States (-1.5%) and Western Europe (-0.6%). The volume markets showing growth were Eastern Europe (+8.4%) and Japan (+6.7%). As the base effect from last year’s strong recovery affects growth rates, some market volumes are leveling off, leading to constrained growth that could affect the remainder of the year.

“August is expected to maintain a selling rate at or slightly above July’s 90-million-unit level, but volume is projected to decline at least 1% from August 2023. China and Western Europe are anticipated to decline from the previous year, with Western Europe particularly affected by a more than 20% pullback in Germany. Markets expected to show positive gains in August include Japan, North America and Eastern Europe, but these increases are not expected to be sufficient to offset the declines.

“The global demand recovery is showing signs of slowing, with lower volume tempering the outlook for the rest of the year. The 2024 sales forecast remains at 88.7 million units, representing a 2.2% increase from 2023. While the overall environment and volume level remain healthy, any significant near-term increase in demand has been put on hold. There is a downside volume risk of approximately 500,000-750,000 units in 2024 with five months remaining in the year.”

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/

 

Electric Vehicle Brands Must Improve Mobile App Connectivity to Meet Owners’ Needs, JD Power Finds

2024-05-28

jillian.breska

TROY, Mich.: 29 May 2024 — Usage of auto manufacturers’ mobile apps continues to increase as 90% of electric vehicle (EV) owners say they use these apps, up from 88% in 2023 and 81% in 2022, according to the JD Power 2024 U.S. OEM EV App Report,^SM released today. A notable 67% of EV owners use their brand’s app at least half of the time they drive, which highlights the importance of a well-executed EV mobile app that prioritizes owners’ primary needs related to overall charging capability, vehicle status and remote control functionality.

“The overall experience and performance of electric vehicle mobile apps has improved year over year, as manufacturers continue to identify areas of opportunity, including feature contenting, usability and overall connectivity,” said Jason Norton, director of benchmark consulting at JD Power. “However, a continued focus on the specific needs of EV owners is needed to further improve the user experience and trust.”

Following are some key findings of the 2024 report:

• App connectivity focused: Although the percentage of EV owners who experienced a connection problem (38%) is flat year over year, the experience between non-Tesla and Tesla owners is more revealing. While 40% of non-Tesla EV owners say they experienced a connection problem—down from 44% a year ago—35% of Tesla owners say they experienced a connection-related problem—up from 30% in 2023 and 20% in 2022. This problematic trend may suggest that increasing app usage is straining Tesla’s app network capacity.
• Feature driven: The report shows that top-performing brands are addressing the needs and features desired by owners, such as the ability to accurately monitor an active charge; set charging preferences (e.g., maximum state of charge, charging schedules, departure timers); and plug and charge integration for an enhanced public charging experience. Of the 25 most common app features, 20 are cited as desirable by more than 70% of EV owners, with all but one charging-related feature having higher desirability than in previous years.
• Continuing effect on EV shoppers: Nearly two-thirds (62%) of Tesla owners say availability of a smartphone app had at least a moderate effect on their purchase decision, up from 59% in 2023.  Among non-Tesla owners, only 34% say a smartphone app had at least a moderate effect on their purchase decision. Furthermore, 21% of Tesla owners say it had a major effect vs. just 8% among non-Tesla EV owners. This suggests that OEMs must do a better job of communicating the availability and feature content of their smartphone apps to help attract interested EV shoppers.
• Dealership effect on satisfaction: Nearly three-fourths (72%) of EV owners say they received some type of assistance from the dealership with the app, an increase of 2 percentage points from 2023. Nearly 88% of premium brand owners (excluding Tesla) say they received dealership support vs. 74% of mass market EV owners. Owners who received assistance from their dealership are more likely to use the app and to be satisfied with it than those who did not.

Report Rankings

Tesla ranks highest overall and highest in the premium brand segment of EV mobile apps, with a score of 847 (on a 1,000-point scale). Mercedes me connect (843) ranks second and My BMW (834) ranks third.

MyHyundai with Bluelink ranks highest in the mass market segment of EV mobile apps, with a score of 835. Kia Access (829) ranks second and FordPass (810) ranks third.

The U.S. OEM EV App Report, now in its fourth year, gauges EV owners’ experience with their brand’s mobile app. Insights are derived from surveying EV owners and an assessment of the most relevant EV mobile apps. Results are based on a standardized assessment approach relying on more than 350 best practices for vehicle apps that include more than 70 EV-specific attributes.

The report includes apps from the top 25 award-eligible brands that sell EVs in the United States; 10 profiled EV brands in China; and nine profiled EV brands in Europe. Additionally, almost 1,300 EV owners in the United States were surveyed in April-May 2024 to gather insights on app usage; feature desirability; and app overall execution for the 2024 report.

For more information about the U.S. OEM EV App Report, visit https://www.jdpower.com/business/us-oem-ev-app-report.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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

 

Dealer Software System Outages Disrupt June Sales; Rapid Recovery Expected in July

2024-06-26

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for June 2024, including retail and non-retail transactions, are projected to reach between 1,336,800 and 1,273,600 units, a 2.6% to 7.2% decrease from June 2023, according to a joint forecast from JD Power and GlobalData. June 2024 has 26 selling days, the same as June 2023.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be between 14.7 million and 15.4 million units, down between 0.7 million and 1.4 million units from June 2023.

New-vehicle total sales for the first half of 2024 are projected to finish between 7,794,500 units and 7,857,700 units, a 0.4% to 1.2% increase from the first half of 2023 on a selling day adjusted basis. H1’24 has 154 selling days, two more than H1’23. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 1.7% to 2.5% from a year ago.

The Retail Sales Forecast

New-vehicle retail sales for June 2024 are expected to decrease when compared with June 2023. Retail sales of new vehicles are expected to reach between 1,009,845 and 1,073,000 units, a 2.5% to 8.2% decrease.

New-vehicle retail sales for the first six months 2024 are projected to reach between 6,273,900 and 6,337,000 units, a 0.6% to 1.6% increase from the first six months of 2023 on a selling day adjusted basis. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 1.9% to 2.9% from a year ago.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“Because of the disruption to dealer software systems, June sales will not be reflective of actual consumer demand for new vehicles. Instead, a significant number of sales that would have occurred in June are now likely to occur in July. While considerable uncertainty exists around when these systems will return to normal—under the assumption that they return to normal by month end for most dealers—June total sales are projected to be between 1.33 and 1.27 million units, a 2.6% to 7.2% decrease, respectively, from June 2023. However, it should be noted that a significant range of sales outcomes are possible due to the uncertainty about exactly when system outages will be resolved and what countermeasures dealers put in place to transact sales through the close.

“Prior to the disruption, the total sales forecast was tracking at 1.41 million units, so the effect of the disruption is significant. However, it will not affect overall demand in the long term. Sales will be delayed, but the majority will likely occur in July shortly after the situation is rectified and sales are being made despite system outages. Indeed, if there is one thing that the pandemic demonstrated to the auto industry, it’s that dealers are very adept at dealing with adversity and have been effective in rapidly identifying ways to deliver vehicles to buyers.”

Retail inventory is projected to finish around 1.8 million units, a 4.5% increase from May 2024 and a 41.6% increase from June 2023. Fleet mix is projected at 20.5%, up 0.6 percentage points from June 2023.

“The average new-vehicle retail transaction price is declining compared with a year ago as manufacturer incentives rise, retailer profit margins decline and availability of lower-priced vehicles increases. Transaction prices are trending towards $44,857—down $1,372 or 3%—from June 2023. The combination of slightly higher retail sales and lower transaction prices means that buyers are on track to spend nearly $44.6 billion on new vehicles this month—6.5% lower than June 2023 but the fourth highest June on record.

“Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,407, down 32.3% from June 2023. Rising inventory is the primary factor behind the profit decline and fewer vehicles are selling above the manufacturer’s suggested retail price (MSRP). Thus far in June, only 16.9% of new vehicles have been sold above MSRP, which is down from 34.9% in June 2023.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.4 billion, down 34.8% from June 2023.

“Rising inventory means fewer vehicles are being pre-sold by retailers, with more shoppers able to buy directly off dealer lots. This month, JD Power forecasts that 32.9% of vehicles will sell within 10 days of arriving at the dealership, down from a peak of 58% in March 2022. The average time a new vehicle remains in the dealer’s possession before sale is expected to be 45 days, up from 28 days a year ago.

“Manufacturer discounts are expected to be similar to May (down $65 per unit) but have materially increased from a year ago. The average incentive spend per vehicle has grown 51.2% from June 2023 and is currently on track to reach $2,625. Expressed as a percentage of MSRP, incentive spending is currently at 5.3%, an increase of 1.8 percentage points from a year ago.  Increased spending of current model year is nearly offset by lower volumes of prior model year vehicles with higher spending.

“One of the drivers of higher incentive spending from a year ago is the increased availability of lease deals, and leasing is growing accordingly. This month, leasing is expected to account for 22.7% of retail sales, up 2.7 percentage points from 20% in June 2023.”

After rising consistently during the past few years, average monthly loan payments are stabilizing. The average monthly finance payment this month is on pace to be $727, down $1 from June 2023. The average interest rate for new-vehicle loans is expected to be 6.99%, flat from a year ago.

So far in June, average used-vehicle retail prices are $28,208, reflecting a decrease of 6.3%–or down $1,882—from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending towards $7,770, which is down $1,552 from a year ago.

“Looking forward to July, we expect the dealer software system disruptions to be rectified and most of the lost June sales recovered within the month. Also, a robust start to July is expected due to the extended July 4^th holiday weekend.”

Sales & SAAR Comparison

U.S. New Vehicle	June 20241, 2, 3	May 2024	June 2023
Retail Sales	1,041,436 units (5.4% lower than June 2023)2	1,175,307 units	1,100,461 units
Total Sales	1,305,206units (4.9% lower than June 2023)2	1,437,895 units	1,372,785 units
Retail SAAR	12.2 million units	13.2 million units	13.1 million units
Total SAAR	15.1 million units	16.0 million units	16.1 million units

¹ Figures cited for June 2024 are forecasted based on the first 13 selling days of the month.
² June 2024 has 26 selling days, the same as June 2023.
³ June 2024 figures represent mid-point of range estimates.

The Details

• The average new-vehicle retail transaction price in June is expected to reach $44,857, down $1,372 from June 2023. The previous high for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in June is expected to reach $2,625, up $889 from June 2023. Spending as a percentage of the average MSRP is expected to increase to 5.3%, up 1.8 percentage points from June 2023.
• Average incentive spending per unit on trucks/SUVs in June is expected to be $2,707, up $908 from a year ago, while the average spending on cars is expected to be $2,263, up $765 from a year ago.
• Retail buyers are on pace to spend $44.6 billion on new vehicles, down $3.1 billion from June 2023.
• Trucks/SUVs are on pace to account for 81.3% of new-vehicle retail sales in June.
• Fleet sales are expected to total 263,770 units in June, down 3.1% from June 2023. Fleet volume is expected to account for 20.2% of total light-vehicle sales, up 0.4 percentage points from a year ago.
• The average interest rate for new-vehicle loans is expected to be 6.99%, flat from a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“EV growth has been slow the first half of the year. Although interest from new-vehicle shoppers is slightly up month over month, it’s flatlined at about 25%. Monthly EV retail share is also unchanged compared with a year ago at 8.4%. EV availability and affordability have risen to 58% market coverage offering viable alternatives to gas-powered vehicles. With more options at competitive affordability, it begs the question, ‘Why is the pace of EV sales flat and what is the satisfaction and future intent of current EV owners?’

“The JD Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study shows that 96% of current BEV owners are likely to consider purchasing/leasing another BEV for their next purchase. Looking deeper, only 20% of current BEV owners are likely to consider purchasing/leasing a gas-powered vehicle for their next purchase and 39% of current BEV owners are likely to consider purchasing/leasing a PHEV for their next purchase. This is positive news for the EV ecosystem.

“It’s notable, too, that 87% of current PHEV owners say they’re likely to consider purchasing/leasing another PHEV and 66% saying they’re likely to consider stepping up to a BEV. Only 44% of PHEV owners say they are likely to consider a gas-powered vehicle for their next purchase.”

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“The global light-vehicle selling rate in May stood at 87.4 million units, a modest improvement from 86.2 million units in April. The year-to-date selling rate through May improved to 84.7 million units but remains more than 4 million units below the expected year-end forecast.

“Sales volume in May increased just 0.7% to 7.2 million units, which is weaker than expectations going into the month. Lower demand in China accounted for much of weaker global gain. China contracted 3.3% in May, which was noticeably stronger than the 0.4% decline projected—but the selling rate still improved from April. Japan (-4.5%) and Korea (-7.3%) also contributed to the muted performance in May. Europe was mixed with a contraction of 2.2% in Western Europe as persistent economic headwinds continued. Eastern Europe grew 13%, as robust recovery in Russia continues. North America posted a 6% increase, driven by the US market strength.

“Some additional challenges have emerged in June, but the selling rate is still expected to pass the 90-million-unit level, though slightly weaker than the 92-million-unit rate a year ago. Volume is projected to decline nearly 1% year over year, fueled by a nearly 6% pullback in China and a 16% decline in Korea.

“The slight pullback in demand expectations has trimmed the outlook for 2024 by 200,000 units to 88.9 million units, a 2.5% increase from 2023. China’s trade-in subsidy does not appear to be providing a boost to demand as the government expected. However, the European Central Bank did cut rates in June, and more are expected, which could provide some upside if sales are reignited. Overall, risks remain balanced, and the global auto market is stable.”

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/

 

Problems Plague BEVs Despite Traditional OEMs Leveling Playing Field with Tesla, JD Power Finds

2024-06-26

jillian.breska

TROY, Mich.:  27 June 2024 [Updated: 27 March 2025] — In its inaugural year incorporating franchise dealership repair visits with the Voice of the Customer (VOC) data to create a more expansive metric for problems per 100 vehicles (PP100), the JD Power 2024 U.S. Initial Quality Study^SM (IQS), released today, the industry average is 194 PP100. Mass market brands, with a combined average of 181 PP100, outperform the industry average. Meanwhile, premium brands—often including more complicated systems and thus more reliance on connectivity—average 230 PP100. A lower score reflects higher vehicle quality.

“It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality,” said Frank Hanley, senior director of auto benchmarking at JD Power. “However, the industry can take solace in the fact that some problem areas such as voice recognition and parking cameras are seen as less problematic now than they were a year ago.”

Proponents of battery electric vehicles (BEVs) often state these vehicles should be less problematic and require fewer repairs than gas-powered vehicles since they have fewer parts and systems. However, newly incorporated repair data shows BEVs, as well as plug-in hybrid electric vehicles (PHEVs), require more repairs than gas-powered vehicles in all repair categories. “Owners of cutting edge, tech-filled BEVs and PHEVs are experiencing problems that are of a severity level high enough for them to take their new vehicle into the dealership at a rate three times higher than that of gas-powered vehicle owners,” Hanley said. 

Gas- and diesel-powered vehicles average 179 PP100 this year, while BEVs are 84 points higher at 263 PP100. While there are no notable improvements in BEV quality this year, the gap between Tesla’s BEV quality and that of traditional OEMs’ BEV quality has closed, with Tesla only performing better by 2 PP100. In the past, Tesla has performed much better, but that is not the case this year and the removal of traditional feature controls, such as turn signals and wiper stalks, has not been well received by Tesla customers bringing them closer to the BEVs from the traditional automakers.

Following are key findings of the 2024 study:

• Frustration rising from false warnings: Often, owners don’t understand what warnings mean. For instance, rear seat reminder technology, designed to help vehicle owners avoid inadvertently leaving a child or pet in the rear seat when exiting the vehicle, contributes 1.7 PP100 across the industry. Some mistakenly perceive it signals an unbuckled seat belt or cite the warning goes off when no one is present in the rear seat. Furthermore, advanced driver assistance systems, intended to save lives and reduce injuries, are irritating vehicle owners with inaccurate and annoying alerts from rear cross traffic warning and reverse automatic emergency braking features, a newly added feature to the survey this year.
• Owners want to cut the cord: Problems with Android Auto and Apple CarPlay persist as the feature remains one of the top 10 problems. Customers most frequently experience difficulties connecting to their vehicle or losing connection. More than 50% of Apple users and 42% of Samsung users access their respective feature every time they drive, illustrating that customers want their smartphone experience brought into the vehicle and also desire the feature to be integrated wirelessly.
• In-vehicle controls are out of control: Features, controls and displays is the second most problematic category in the study, slightly better than only the notoriously issue-prone infotainment category. From such seemingly simple functions like windshield wipers and rear-view mirror to the more intricate operation of an OEM smartphone application, this category is particularly troublesome in EVs. The PP100 incidence in this category is more than 30% higher in EVs than in gas-powered vehicles. This is exacerbated by Tesla’s recent switch to steering wheel-mounted buttons for horn and turn signal functions, a change not well received by owners.

The U.S. Initial Quality Study, now in its 38th year, is based this year on responses from 99,144 purchasers and lessees of new 2024 model-year vehicles who were surveyed after 90 days of ownership. For the first time, the study additionally incorporates repair visit data based on hundreds of thousands of real-world events reported to franchised new-vehicle dealers. The methodology for this year’s IQS was enhanced to unite newly acquired, state-of-the-art vehicle repair data with traditional JD Power VOC data while fielding continuously year-round. This enhanced IQS data allows automakers the ability to quickly identify potential issues before they become bigger problems in the quality landscape.

The study is based on a battery of 227 VOC questions plus relevant repair data, all of which is organized into 10 vehicle categories: infotainment; features, controls and displays; exterior; driving assistance; interior; powertrain; seats; driving experience; climate; and unspecified (unique to repair). The study is designed to provide manufacturers with information to facilitate the identification of problems and to drive product improvement. The study was fielded from July 2023 through May 2024.

Highest-Ranking Brands and Models

Ram is the highest-ranking brand overall in initial quality with a score of 148 PP100. Among mass market brands, Chevrolet (159 PP100) ranks second and Hyundai (161 PP100) ranks third.

Among premium brands, Porsche ranks highest with a score of 171 PP100. Lexus (173 PP100) ranks second and Genesis (184 PP100) ranks third.

The parent corporation receiving the most model-level awards is General Motors Company (six awards), followed by Hyundai Motor Group and Toyota Motor Corporation, each with four awards. Among brands, Chevrolet receives the most segment awards (four), followed by Lexus (three).

• General Motors Company models that rank highest in their respective segment are Cadillac XT5, Cadillac XT6, Chevrolet Equinox, Chevrolet Silverado HD, Chevrolet Tahoe and Chevrolet Traverse.
• Hyundai Motor Group models that rank highest in their respective segment are Genesis G80, Hyundai Santa Cruz, Kia Carnival and Kia Forte.
• Toyota Motor Corporation models that rank highest in their respective segment are Lexus IS, Lexus LC, Lexus UX and Toyota Camry.
• Toyota Motor Corporation has the highest-ranking model overall, the Lexus LC, with 106 PP100.

Plant Quality Awards

Toyota Motor Corporation’s Takaoka 2, Japan, plant, which manufactures the Toyota RAV4 and Toyota Venza, receives the Platinum Plant Quality Award. Plant quality awards are based solely on defects and malfunctions and exclude design-related problems and repair incidents.

Gold Plant Quality Awards for North/South America, in a tie, go to Honda Motor Company’s Alliston 2 plant in Ontario, Canada, which produces the Honda CR-V, and Toyota Motor Corporation’s Cambridge South plant in Ontario, Canada, which produces the Lexus RX. Gold Plant Quality Awards for Europe and Africa, in a tie, go to BMW AG’s plant in Born, Netherlands, which produces the MINI Cooper and MINI Countryman, and Porsche AG’s plant in Osnabrück, Germany, which produces the Porsche 718.

For more information about the U.S. Initial Quality Study, visit https://www.jdpower.com/business/us-initial-quality-study-iqs.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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 

 

Rise in Inventory, Vehicle Incentives Help Satisfaction Increase with Manufacturer Websites, JD Power Finds

2024-07-12

jillian.breska

TROY, Mich.: 16 July 2024 — Overall satisfaction with car manufacturer websites is the highest it has been in three and a half years thanks to an increase of inventory and incentives, according to the JD Power 2024 U.S. Manufacturer Website Evaluation Study^SM —Summer, released today.

“There were numerous macroeconomic factors, such as lack of chips and inventory, negatively influencing the auto industry during the pandemic,” said Chelsea Duckhart, analyst of digital solutions at JD Power. “Now, the auto industry is as close to normal as it has ever been and because of that, we are seeing an increase in inventory, incentives and rebates. Additionally, manufacturers are being more transparent by showing vehicles being built and delivered as well as an increase in price transparency, all things that significantly affect website satisfaction.”

The JD Power U.S. Manufacturer Website Evaluation Study is a semiannual study that measures customer satisfaction of automotive manufacturer websites during the process of shopping for a new vehicle by examining four key measures (in order of importance): information/content; visual appeal; navigation; and speed.

Study Rankings

Mercedes-Benz ranks highest among premium manufacturer websites with a score of 757. Lexus (756) ranks second, while BMW (751) and Infiniti (751) rank third in a tie.

Chevrolet ranks highest among mass market manufacturer websites with a score of 758. GMC (744) ranks second and Jeep (743) ranks third.

The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 10,471 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded in May 2024.

For more information about the U.S. Manufacturer Website Evaluation Study, visit https://www.jdpower.com/business/resource/us-manufacturer-website-evaluation-study.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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

 

Home Charging Satisfaction a Bright Spot among Electric Vehicle Owners, JD Power Finds

2024-03-25

jillian.breska

 

TROY, Mich.: 26 March 2024 — While the public charging infrastructure for electric vehicles (EV)¹ faces a myriad of growing pains, home charging offers a much more satisfying experience for owners, according to the JD Power 2024 U.S. Electric Vehicle Experience (EVX) Home Charging Study,^SM released today. Overall satisfaction scores among owners in all three home charging segments² increase year over year, led by Level 1 portable chargers (+20 points on a 1,000-point scale); Level 2 permanently mounted home chargers (+4); and Level 2 portable charging stations (+2).

“In contrast to public charging, home charging is the ultimate convenience for owners to charge their EV,” said Brent Gruber, executive director of the EV practice at JD Power. “Home charging is the most satisfying aspect of owning an EV, which is why all parties in the EV ecosystem need to take the necessary steps to ensure that residential charging is available for current and potential EV owners alike. Incentives and programs are also available to offset the cost of charger installations, upgrades and management of ongoing charging costs, but too few EV shoppers are taking advantage of these offerings. The industry needs to do a much better job with consumer education and awareness, and dealers are certainly in the best position to fill that role at a local level.”

Following are key findings of the 2024 study:

• Gap in satisfaction: Although satisfaction with Level 1 portable chargers has improved 20 points this year, the gap between it and Level 2 permanently mounted charging stations is still significant (581 vs. 744, respectively). In comparison, overall satisfaction with Level 2 portable chargers is 735. Combined, Level 2 portable and Level 2 permanently mounted charging stations are utilized by 84% of all EV owners who charge their vehicle at home.
• Charging speed remains a key differentiator: Charging speed is the most substantial differentiating factor of owner satisfaction between Level 1 and Level 2 chargers. Level 1 portable chargers have the lowest satisfaction for charging speed (325), while satisfaction increases to 649 for Level 2 portable chargers and 682 for Level 2 permanently mounted chargers.
• EVs in all charging segments have more problems: Despite gains in overall satisfaction, EVs in all three charging segments see year-over-year increases in overall problems among owners. Owners of Level 2 portable chargers experience an increase of 6.6 problems per 100 chargers (PP100), on average, from the previous year. The most common problem among all owners is that the internet or Wi-Fi connection either did not work or is difficult to use. Additionally, slower than normal charging speed is a particular problem with Level 1 portable chargers (8.6 PP100).
• Bidirectional charging shows viability: Unlike most existing EV charging technology that sends energy only in one direction—from a power source to the vehicle battery—bidirectional charging allows the vehicle to send energy for use by other devices in the home, or it can be potentially returned to the grid to offset consumer energy costs and help balance peak electrical demands. Among owners of premium EVs, 35% are interested in and willing to pay extra for such charging, while 29% of mass market owners say the same.
• Minimal awareness of utility programs: Nearly half (49%) of EV owners say they are unaware of the programs offered by their electric utility and 18% say their electric utility does not offer any programs. Educating owners on local utility programs is in the interest of both automakers and home charger manufacturers. For example, among Level 2 charger owners who use financial incentives for installation, satisfaction is notably higher for cost of charging (+18 points) and fairness of retail price (+15) than among those who do not use incentives.

Study Ranking

While the study examines the home charging experience of EV owners across all three charger segments, only the Level 2 permanently mounted charging station segment is award eligible this year.

Tesla ranks highest among Level 2 permanently mounted charging stations for a fourth consecutive year, with a score of 790. Emporia (764) ranks second and GRIZZL-E (761) ranks third.

The U.S. Electric Vehicle Experience (EVX) Home Charging Study, now in its fourth year, is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV home charging experience for both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Satisfaction is measured across eight factors: fairness of retail price; cord length; size of charger; ease of winding/storing cable; cost of charging; charging speed; ease of use; and reliability. These factors provide a comprehensive assessment of the owner experience and charger performance. Respondents include 15,617 owners of 2018-2024 model year BEVs and PHEVs. The study was fielded from December 2023 through February 2024.

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

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 seven 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 150,000 members.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and 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

¹Electric vehicles (EV) include battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV).
²JD Power defines charger segments as Level 1 portable; Level 2 portable; or Level 2 permanently mounted (permanent). Level 1 portable charging stations offer simple electric vehicle charging capabilities at home through a standard 120-volt electrical outlet. Level 2 portable charging stations offer faster charging capabilities at home through an upgraded 240-volt electrical outlet. Level 2 permanently mounted charging stations use an upgraded 240-volt electrical outlet via a permanently wall-mounted format.

 

New-Vehicle Retail Sales Increase in April but Fleet Sales Decline

2024-04-25

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for April 2024, including retail and non-retail transactions, are projected to reach 1,304,600 units, a 0.9% decrease from April 2023 on a selling day adjusted basis, according to a joint forecast from JD Power and GlobalData. April 2024 has 25 selling days, one fewer than April 2023.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 15.6 million units, down 0.2 million units from April 2023.

The Retail Sales Forecast

New-vehicle retail sales for April 2024 are expected to increase when compared with April 2023. Retail sales of new vehicles are expected to reach 1,084,900 units, a 2.1% increase, on a selling day adjusted basis.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“April is showing mixed results, with an increase in retail sales offset by a decline in sales to fleet buyers. This is a notable change from recent months in which manufacturers have increased fleet sales. Although sales to retail buyers are rising, the rate of growth is modest. This is due in part to discounts from manufacturers and retailers stabilizing, coupled with ongoing deterioration of used-vehicle values that results in shoppers having less trade-in equity. While the stabilization of discounting is positive for short-term industry profitability, the modest growth rate means that inventory at dealerships is continuing to rise and discounting is expected to increase. This should elevate the sales pace at the expense of per unit profitability.”

Retail inventory is expected to finish around 1.8 million units, a 3.2% increase from March 2024 and a 40% increase from April 2023. Fleet mix is projected at 16.8%, down 2.5 percentage points from April 2023 and down 13.6% on a selling-day adjusted volume basis.

“The average new-vehicle retail transaction price is declining as manufacturer incentives rise, retailer profit margins fall, and availability of lower-priced vehicles increases compared to a year ago. Transaction prices are trending towards $45,093—down $1,172 or 2.5%—from April 2023. The combination of slightly higher retail sales but lower transaction prices mean that consumers are on track to spend nearly $46.4 billion on new vehicles this month—3.5% lower than April 2023 and the fourth-highest April on record.

“Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,588 down 29.8% from April 2023. Rising inventory is the primary factor behind the profit decline and fewer vehicles are selling above the manufacturer’s suggested retail price (MSRP). Thus far in April, only 16% of new vehicles have been sold above MSRP, which is down from 30.5% in April 2023.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.7 billion, down 30.5% from April 2023.

“Rising inventory means fewer vehicles are being pre-sold by retailers, with more shoppers able to buy directly off dealer lots. This month, JD Power projects that 33.2% of vehicles will sell within 10 days of arriving at the dealership, down from a peak of 58% in March 2022. The average time a new vehicle remains in the dealer’s possession before sale is expected to be 44 days, marking a 14-day increase from a year ago.

“Manufacturer discounts are expected to fall $204 from a month ago but have materially increased from a year ago. The average incentive spend per vehicle has grown 56.7% from April 2023 and is currently on track to reach $2,633. Expressed as a percentage of MSRP, incentive spending is currently at 5.3%, an increase of 1.9 percentage points from a year ago.  The driver of the decline in average spend from last month is primarily due to lower sales of prior model year vehicles, which typically have much larger discounts than current model year vehicles.

“One of the drivers of higher incentive spending compared to a year ago is the increased availability of lease deals, and leasing is growing accordingly. This month, leasing is expected to account for 23.6% of retail sales, up 3.7 percentage points from 19.8% in April 2023.”

After rising consistently during the past few years, average monthly loan payments are stabilizing. The average monthly finance payment this month is on pace to be $724, down $6 from April 2023. The average interest rate for new-vehicle loans is expected to be 7.0%, an increase of 20 basis points from a year ago.

So far in April, average used-vehicle retail prices are $28,491, reflecting a 4.5%–or $1,347—decrease from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending towards $8,004, which is down $1,330 from a year ago.

“May is traditionally one of the larger sales months of the year, facilitated by Memorial Day promotional activity and discounts from manufacturers. In recent years, with low inventories and high demand, holiday sales incentives were scarce. However, with inventories increasing and competition intensifying, shoppers could benefit from brands eager to move inventory.”

Sales & SAAR Comparison

U.S. New Vehicle	April 20241, 2	March 2024	April 2023
Retail Sales	1,084,874 units (2.1% higher than April 2023)2	1,169,243 units	1,104,592 units
Total Sales	1,304,561 units (0.9% lower than April 2023)2	1,445,365 units	1,368,894 units
Retail SAAR	13.4 million units	12.6 million units	13.2 million units
Total SAAR	15.6 million units	15.6 million units	15.8 million units

¹ Figures cited for April 2024 are forecasted based on the first 17 selling days of the month.
² April 2024 has 25 selling days, 1 fewer than April 2023.

The Details

• The average new-vehicle retail transaction price in April is expected to reach $45,093, down $1,172 from April 2023. The previous high for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in April is expected to reach $2,633, up from $1,680 in April 2023. Spending as a percentage of the average MSRP is expected to increase to 5.3%, up 1.9 percentage points from April 2023.
• Average incentive spending per unit on trucks/SUVs in April is expected to be $2,765, up $1,007 from a year ago, while the average spending on cars is expected to be $2,129, up $737 from a year ago.
• Retail buyers are on pace to spend $46.4 billion on new vehicles, down $1.7 billion from April 2023.
• Trucks/SUVs are on pace to account for 79.2% of new-vehicle retail sales in April.
• Fleet sales are expected to total 219,687 units in April, down 13.6% from April 2023 on a selling day adjusted basis. Fleet volume is expected to account for 16.8% of total light-vehicle sales, down 2.5 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to increase to 7%, 20 basis points higher than a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“EV retail share is trending at 8.9% this month, up from the first quarter average of 8.3%. Furthermore, the percentage of shoppers who are ‘very likely’ to consider an EV for their next vehicle is up to 22.9%, breaking a five-month declining trend.

“Affordability, which is one of the factors tracked in the JD Power EV Index, is up 4 points to 105, the highest level we’ve seen since tracking was initiated three years ago. This means that, on average, EVs are more affordable than comparable gas-powered vehicles in terms of total cost of ownership. Given that affordability is one of the key reasons shoppers reject EVs, it’s incumbent that manufacturers and dealers work to educate shoppers and correct some of their misperceptions.”

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“Global light-vehicle sales finished the first quarter at 20.7 million units, up 4% from Q1 2023. The selling rate averaged 83.0 million units during the quarter, with the March selling rate being largely in line with February. Sales volume grew just 1% from March 2023, with mixed results at a regional level. Domestic sales in China accelerated in March, increasing 4% year over year and, when combined with the 6% increase in North America, stable growth at the topline level continues. Sales in Japan continue to plunge, down 21% in March, fueled by mini-vehicle production suspension. Korea declined 12% but the selling rate improved slightly. Europe was mixed with Western Europe contracting 1% but recovery in Russia and Ukraine—and growth in Turkey—driving Eastern Europe to a 4% increase.

“Global light-vehicle volume in April looks to be solid, up 6% year over year. The global selling rate also is expected to accelerate to 87.8 million units, 4 million units above April 2023. A rebound in Western Europe, growth in China and continued recovery in Eastern Europe drive the growth in April. With a tough year-over-year comparison, North America is expected to contract slightly, but maintain a solid selling rate. 

“The outlook for 2024 is essentially unchanged at 89.2 million units, a 3% increase from 2023. This year is a balancing act between supply and demand. As production constraints fully dissipate, natural demand will be able to be met at current prices. Given that we do expect some easing of pricing throughout most major markets, the global auto industry is expected to maintain a positive outlook in the near term.”

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

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