IHS Markit | Automotive Insights: Recent Episodes
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From product planning to marketing, sales, and the aftermarket, IHS Markit automotive solutions provide the actionable insight to make better decisions that drive better results.
In this episode of Fuel for Thought we discuss the future of trucking. Disruption is coming to the medium and heavy commercial vehicle industry and an increased focus on climate change, strict regulations, and technological innovations are expected to change the future landscape.
Hear from S&P Global Mobility experts as we identify and address major questions the truck industry faces.
- Mike Wall - Executive Director of Automotive Analysis, S&P Global Mobility
- Andrej Divis - Executive Director of Global Heavy Truck Research, S&P Global Mobility
- Greg Genette - Senior Research Analyst for Heavy Trucks, S&P Global Mobility
To read the Fuel for Thought article, click here.
In this episode of Fuel for Thought, we discuss what's likely to shape our industry in 2024 and beyond. Learn about the softening of the EV market, as well as increasing media coverage concerning sustainability, and the associated future pressures that this could bring to your business.
With the upcoming S&P Global CERAWeek and Innovation Agora event in Houston (TX), we will preview some of the panel discussions that will be held there with several industry leaders.
Join us as we dive into the topic of the mobility and energy transition.
- Tom De Vleesschauwer - Senior Director, Future Mobility, S&P Global Mobility
- Anoop Desai - Executive Director of Sustainability, Consulting, S&P Global Mobility
- Greg Genette - Senior Research Analyst, MHCV, S&P Global Mobility
To read the Fuel for Thought article, click here.
The automotive industry is reaching an inflection point that will reshape its near-term future, precipitated by the connected car era – also known as software defined vehicles or “SDVs.” This will affect every aspect of future mobility, from Generative AI implications in Level 2+ autonomy to the HMI of the cockpit domain software.
Tune in to this episode of Fuel for Thought and hear from our industry experts as we dive into the topic of connected cars and the automotive revolution...
- Mark Rechtin - Executive Editor, S&P Global Mobility
- Phil Amsrud - Associate Director, Automotive Supply Chain & Technology, S&P Global Mobility
- Tawhid Khan - Software Research Director, Automotive Supply Chain & Technology, S&P Global Mobility
To read the Fuel for Thought article, click here.
Average transaction prices for new vehicles are through the roof. But affordability has also been crimped by many automakers shifting away from traditional entry-level segments, both in the US and Europe. But as legacy OEMs depart the 'cheap-and-cheerful' arena, white space opportunity emerges for new manufacturers to enter the fray.
In the past decade, it was possible to find an entry-level new vehicle for less than $20,000. But pricing in the US market has recently increased dramatically to where $25,000 or even $30,000 is the lowest possible transaction price for a “low-priced" vehicle.
Tune in to this episode of Fuel for Thought and hear from our industry experts as we dive into the topic of vehicle affordability...
- Mark Rechtin - Executive Editor, S&P Global Mobility
- Julie Choate - Senior Consultant, Automotive Advisory, S&P Global Mobility
- Constantin Gerner - Senior Consultant, Automotive Advisory, S&P Global Mobility
Five years ago, hype surrounding “autopilot” cars peaked. But S&P Global Mobility’s updated forecast offers a reality check of careful, limited adoption of self-driving technology through 2035. Learn more about the future of autonomous vehicles in this episode of Fuel for Thought.
Join Mark Rechtin - Executive Editor, Jeremy Carlson - Associate Director of the Autonomy Practice, and Own Chen - Senior Principal Analyst at S&P Global Mobility as they share their thoughts on this topic.
The consumer is already inundated by more than 450 vehicle nameplates to choose from in the US market. With automakers rapidly adding EVs to their product portfolios, that number will soar even higher. How are OEMs, dealers, and agencies going to adjust their marketing messaging and media spend with this onslaught of products? Learn more in this episode of Fuel for Thought.
Join Mark Rechtin - Executive Editor, Joe Kyriakoza - Vice President and General Manager of Polk Automotive Solutions, and Jason Jordhamo, Director of Polk Automotive Solutions at S&P Global Mobility as they share their thoughts on this topic.
In this episode of Fuel for Thought we are going to expand the conversation of electrification.
Rosy sales projections aside, global adoption of battery-electric vehicles still faces huge obstacles to cross the chasm, an updated forecast from S&P Global Mobility shows. Raw materials shortages, supply chain snarls, mainland China’s dominance, and charging-network snafus are showing the transition from ICE to EV will take much more than wishful thinking and government mandates.
Join Mark Rechtin - Executive Editor, Graham Evans - Director of Supply Chain and Technology, and Calum MacRae - Director of Supply Chain and Technology at S&P Global Mobility as they share their thoughts on this topic.
In this episode of Fuel for Thought we discuss how the commercial vehicle fleet is accelerating toward ZEV adoption. How many electrified medium- and heavy-duty commercial vehicles can we expect to see delivering packages and plying US highways? And how soon? S&P Global Mobility recently upgraded its forecast to 140,000 ZEV MHCVs annually, starting in 2030. But potential potholes to adoption remain.
Join Mark Rechtin - Executive Editor, Andrej Divis - Executive Director of Global Truck Research, and James Martin - Consulting Director at S&P Global Mobility as they share their thoughts on this topic.
In this episode of Fuel for Thought, S&P Global Mobility experts discuss the transformation of auto retail. Automakers and dealers need to change rapidly if they want to survive in the digital age. The recent S&P Global Mobility Vehicle Buyer Journey survey showed consumers were willing to drive further to buy a car if a dealer engaged more online. With disruptor automakers now playing heavily in the omnichannel retail transformation space, what are legacy OEMs to do about it?
Join Mark Rechtin - Executive Editor, Tanja Linken - Executive Director of Dealer Network Development, and Grant Gitre - Associate Director of Consulting at S&P Global Mobility as they share their thoughts on this topic.
In this episode of Fuel for Thought, S&P Global Mobility experts discuss auto safety systems. As more ADAS systems are installed in new vehicles, consumers, automakers and repair shops will have to ensure cars stay safe after modifications and repairs are performed.
A slight modification or accident to a vehicle could make its driver-assist and crash-avoidance technology not work properly – or at all. And as more ADAS vehicles enter the fleet, the service and repair industry is struggling to keep pace.
Join Mark Rechtin - Executive Editor, Nishant Parekh - Senior Research Analyst of Auto Technology & Aftermarket, Jeremy Carlson - Associate Director of Autonomy, and Todd Campau - Associate Director of Aftermarket Solutions at S&P Global Mobility as they share their thoughts on this topic.
In today's episode, we will be looking at the transition from an internal combustion world to one of battery electric propulsion and what that means for the traditional automotive supplier base. If you are a maker of engine, transmission, fuel, or exhaust systems, how do you fit into this picture? And how do you make a business case in such an environment? How existential is this crisis? Is it survivable? Or is your doomed fate inevitable?
Join Mark Rechtin, Executive Editor, Michael Robinet, Consulting Executive Director, Mike Wall, Sales Engineering Executive Director, and Michael Southcott, Associate Manager of Propulsion Component Research at S&P Global Mobility as they share their thoughts on this topic.
CERAWeek 2023
With more than 8,000 delegates and 1,000 speakers, S&P Global's CERAWeek conference displayed the ever-closer entwining of the energy and mobility sectors. Scores of CEOs and ministers from global energy and utilities – as well as automotive, technology, manufacturing, policy, and financial communities – gathered to discuss the transition of these key industries.
The easy days of selling from low inventories are over. Brands, dealers, and salespeople need to start fighting for auto buyer attention and consideration once again, and need to work together to win. As inventories continue to move toward pre-pandemic levels, customers are finding themselves with more freedom when it comes to selecting a vehicle, the price they pay, and how they shop.
Nowhere was this looming trend more evident than on the NADA show floor in Dallas, where thousands of dealers, vendors, and automaker reps came together to discuss the near- and long-term future of automotive retail.
Join Mark Rechtin - Executive Director, Executive Editor, S&P Global Mobility, Kristen Balasia - VP of Consulting Services, S&P Global Mobility, Joe Kyriakoza - VP & GM, Polk Automotive Solutions, S&P Global Mobility and Grant Gitre - Consulting Associate Director, S&P Global Mobility.
The end of cheap capital – combined with worsening macroeconomic conditions, the war in Ukraine, raw material uncertainties, and the continuing chip shortage – will combine to mark 2023 as the beginning of an era when demand-side considerations replace the current supply-side fixation. Listen
Already, we are seeing these conditions impact the burgeoning mobility startup ecosystem. But in a larger framework, the industry will continue its pivot away from internal combustion engines toward electrified vehicles in all formats – as well as the exploration of connectivity and monetizing the reams of data produced as the industry seeks more profit pools.
Join Kristen Balasia, VP of Advisory Services, Brian Rhodes, Associate Director of Supply Chain & Technology, and Colin Bird-Martinez, Consulting Principal as they share their thoughts on this topic.
Global new light vehicle sales will reach nearly 83.6 million units in 2023, a 5.6% increase year-over-year, according to a new forecast by S&P Global Mobility, a world leader in information, analytics and solutions. The auto industry continues to navigate supply chain challenges while confronted by several markets facing deteriorating economic conditions and fading pent-up demand. As semiconductor availability plays out, demand destruction is expected to take a more fundamental role in 2023, impacting production and the inventory restocking cycle.
Join Kristen Balasia, VP of Advisory Services, Chris Hopson, Principal Research Analyst, and Colin Couchman, Executive Director, Global Light Vehicle Sales Forecast as they share their thoughts on this topic.
Two recent aftermarket conventions – Automechanika Frankfurt, and AAPEX in Las Vegas – highlighted key mobility, supply chain, and remanufacturing trends that will have significant impact on the industry moving forward. The existence of an electrified future also loomed large with attendees and providers. Join Kristen Balasia, VP of Advisory Services, Todd Campau, Research and Analysis Associate Director Global Insight, David Bellamy, Principal Research Analyst Comp Forecasting as they share their thoughts on this topic.
Aside from the supply shortage, one of the biggest buzzwords in the commercial vehicle industry over the past few years has revolved around electric vehicles (EVs). Everyone has an opinion on whether EVs are a fad or here to stay but what does the data say specifically about EVs in the commercial industry? Even through the supply issues of the past few years, there were more EVs registered commercially through August 2022 than all of 2021. Join Kristen Balasia, VP of Advisory Services, Mark Hazel, Associate Director of Commercial Vehicles, Andrej Divis, Executive Director of Global Truck Research, and James Martin, Consulting Services as they share their thoughts on this topic.
The reimagined 2022 Detroit Auto Show, also known as the North American International Auto Show, finished its media and industry days with limited automakers and brands participating after a three-year hiatus in the city. Those OEMs and brands who did participate – mostly the hometown automakers – most told a brand story that included both internal combustion engine (ICE) and electric vehicle (EV) solutions. While tomorrow’s auto market seems to be rushing to be electric, today is in transition. The result is a more dynamic and diverse market than ever.
Join Kristen Balasia, VP of Advisory Services, Mike Wall, Executive Director of Automotive Analysis, Stephanie Brinley, Associate Director Automotive Intelligence as they share their thoughts on this topic.
We are in year two of the great supply chain crisis. There are a handful of factors — from chip supply to impacts from climate and conflict — as to when "normal" production will return. Here is what we do know now: profit margins are near historic highs for OEMs while consumer loyalty scores are near historic lows. Listen to this podcast and learn important data signals for automotive marketers.
Join Mike Wall, Executive Director of Automotive Analysis, Amber Daniel, Director of Product Strategy for Polk Automotive Solutions, and Cheryl Woodworth, Consulting Associate Director as they share their thoughts on this topic.
Navigating the opportunities within the comparatively nascent EV industry will see winners and losers emerge. But how real are the concerns around the battery upstream market and could this genuinely be the next automotive supply chain crisis? In what way can automakers achieve economies of scale while feasibly navigate fluctuating commodity prices to deliver competitively priced EV offerings?
Join Kristen Balasia, VP, Advisory Services, Jay Hwang, Sr Technical Research Analyst and Anoop Desai, Consulting Director as they share their thoughts on this topic.
Although financial markets grab headlines when fear and volatility are highest, the same markets do also function rationally, and are a window into an ongoing re-evaluation of companies’ prospects and risks. So, what can we learn from the state of the markets today?
Join Kristen Balasia, VP, Advisory Services, Michael Robinet, Consulting Executive Director and Demian Flowers, Product Management Executive Director as they share their thoughts on what automakers could learn from capital markets.
The automotive electrification outlook is a component of many intertwined factors from vehicle technologies and infrastructure availability to consumer sentiments and OEM partnerships. Many propose this to be a “Chicken and Egg” paradox, though S&P Global believes the vehicle (demand side) and charging stations (supply side) can be, and will be, developed and deployed largely at the same time. While there will be momentary shifts toward an oversupply of vehicles or an excess demand for charging, in the long run an equilibrium will emerge in most markets globally.
Listen in as Mark C. Boyadjis, Global Technology Lead, Consulting Services and Claudio Vittori, Associate Director, Supply Chain & Technology share their thoughts on this subject.
Kristen Balasia, Tom DeVleesschauwer and Mark Boyadjis talk about Pace of Change: Energy & mobility, climate and innovation. The global energy and mobility industry is at a critical inflection point. Meeting ambitious emissions targets while also delivering energy and mobility for a growing world economy will require new thinking, innovation and a transformation of a system that supports the $90 trillion world economy. Are our current systems ready for the transformation? What are the innovations necessary to support this new world and what can we do to get there?
Kristen Balasia, Treffen White and our special guest, Chris Potgieter from automotiveMastermind talk about EVs and the dealer of tomorrow. Nearly every major automaker in the United States has announced significant investment commitments to transition a substantial percentage of their product portfolio from internal combustion engines (ICEs) to EVs. But what will this transition mean for the average US franchised dealer? What changes will be required to the traditional sales process? Will service revenue be at risk?
Mike Wall, Vijay Subramanian and Suraj Ghosh discuss India's decarbonization goals and the market's EV challenges. The discussion looks at why India is so critical in the global efforts to decarbonize, how regulations align with India's long-term net zero goals, how OEMs are gearing up to achieve compliance in India, which leaders are emerging, how decarbonization goals play into companies' ESG goals, how India's goals align with other markets, and how likely India is to achieve these goals.
Kristen Balasia, Colin Bird Martinez and Mark Boyadjis talk about Consumer Electronics Show (CES) Recap 2022, which provided some foresight on where the mobility industry is headed next on a technical, theoretical, and commercial basis. The automotive industry theme for 2022 is electrification and all the subsequent impacts it has on product, services, digitalization, and distribution.
The IHS Markit team is joined by special guest Jon Morrison CEO of J&M Strategic Insights and former president of WABCO Americas as they discuss how technology and data are transforming the heavy-duty commercial vehicle industry.
Kristen Balasia, Mike Wall and Phil Amsrud talk about Automotive 2022 outlook, diving into possibilities of recovery and potential pandemic impacts, and what to expect in 2022 for light and electrical vehicles.
Kristen Balasia, Gregory Genette, James Martin and Mark Hazel talk about Light Commercial vehicles, and Medium / Heavy duty vehicles, specifically in the growth and evolution these segments are experiencing.
Growth and transition are influenced by an increase in e-commerce combined with other factors favoring the introduction of electric commercial vehicles.
Kristen Balasia, Mark C. Boyadjis and Tawhid Khan talk about the major shift towards software-defined vehicles and bridging the union between the digital experience and automotive industry.
Kristen Balasia, Mike Wall and Bjoern Huetter talk about supply chain challenges and electrification trends, and review the rocky recovery as we progress through the second year of the pandemic.
Kristen Balasia, Amber Daniel and our special guest, Giancarlo Montenegro; Director of Social at Reunion Marketing talk about the changing consumers experience, specifically how much driving dealer actions and ad spent, and how to best engage the consumers in the tight market.
Kristen Balasia, Vijay Subramanian and James Martin talk about automotive electrification, regulation, and transportation decarbonization toward net-zero ambitions.
Kristen Balasia, Mark Fulthorpe and Phil Amsrud talk about the tight supply of semiconductors, and various disruptions to non-automotive markets which is also impacting the automotive sector.
Kristen Balasia, Thomas Libby, Ian McIlravey and our special guest Michelle Denogean; CMO at Roadster, talk about the changing retail model and consumer behaviors accelerated by COVID-19 lockdown.
Thomas Libby and Kristen Balasia talk about the importance of loyalty in the automotive industry.
Tim Armstrong, Tom De Vleesschauwer and Kristen Balasia talk about IHS Markit's CERAWeek which is widely considered to be the most prestigious annual gathering of the global energy community.
Bjoern Huetter, Ali Khalili and Kristen Balasia talk about 2020 year in review around the globe; an unprecedented year for the automotive industry.
Kristen Balasia, Mark Boyadjis and Brian Rhodes talk about the future of technology and CES 2021 virtual event roundup.
IHS Markit projects new light vehicle sales of 83.4 million units globally in 2021, up 9% from a 2020 projection of 76.5 million units, as industry demand levels emerge next year in the wake of recovery from the COVID-19 pandemic – especially in major markets. Looking at the U.S. auto demand environment, the sequential rise in sales levels from the April 2020 trough reflects that consumers that were willing, ready and able to purchase a new vehicle did so. While the pace of growth for auto sales flattened out after September, IHS Markit expects continued growth in auto demand levels in 2021, supported by sustained economic development from better-than-expected news on vaccines and likely economic stimulus. IHS Markit projects US sales volume to reach 16 million units in 2021, up an estimated 10% from the projected 2020 level of approximately 14.5 million units. The pace of sales is anticipated to be stronger in the second half of the year, following the expected widespread availability of the vaccine by summer. I’m Chris Hopson with an IHS Markit Minute.
Part suppliers have their hands full these days. After surviving more than two months of virtually no vehicle output earlier this spring – production in North America has been on a tear.
Total North American output should reach 13 million light vehicles – a remarkable achievement. Consumers have re-engaged into the market - now finding that inventory of several popular vehicles to be slimmer than expected.
One group feeling the pressure are parts suppliers - dealing with increasing COVID restrictions in many regions are thus having difficulties finding qualified labor to keep up with demand. Absenteeism and employee turnover are at heightened levels.
These issues are not just in North America. Low inventories of microchips and semi-conductors from various locations in Asia are causing concern throughout the global industry. Just when the industry should be enjoying a volume revival – there is no rest for the weary. This has been Michael Robinet with an IHS Markit minute.
Electric vehicle production and platform announcements continue to pepper the landscape. EV development has been underway in earnest, and we are at the edges of an explosion in production as a result. IHS Markit forecasts EV global production could rise to 15% of total light-vehicle production in 2027, bringing a wave of new products.
With this next phase of EV maturation, development has been focused on vehicles that consumers want. At the same time, publicly available charging and infrastructure networks are improving. The combination of products aligned with consumer uses and demand, more choice and better infrastructure are essential to consumer adoption.
However, over the first three quarters of 2020, electric vehicle registrations accounted for only 1.58% of the US light-vehicle market, while the industry is ramping up to support a much higher share of market. Though growth in the coming years will be strong, we may also see near-term production increase faster than consumer demand.
I’m Stephanie Brinley and this has been an IHS Markit Minute.
Kristen Balasia, Peter Nagle and Mark Fulthorpe talk about automotive 2021 outlook, diving into the positive influences and uncertainties, and what we can expect in 2021.
As the automotive industry looks to recover lost revenues from the global COVID-19 pandemic, the growing demand for high-tech, shared mobility solutions has become a focal point.
Within major markets, IHS Markit forecasts a steady 18 percent compound annual growth rate on vehicle sales for mobility services use in the next 10 years, adding 2.6 million units by 2030.
In contrast, vehicle sales for personal-use will see a net loss of 1 million units in the same timeframe.
To take advantage of the shifting consumer demand, many automakers are partnering with ride-hailing companies to design and optimize a new type of vehicle for their services.
Recently, Chinese carmaker, BYD launched the D1 to exclusively support DiDi’s ride-hailing operations in China, earning revenues based on vehicle usage, rather than unit sales. And BYD is not alone.
Several other OEMs have launched similar endeavors, proving that the pandemic has forced OEMs to think differently about how vehicles are designed AND how revenues are earned.
I’m Mark Boyadjis, with an IHS Markit Minute.
Kristen Balasia, Mike Wall and Sandra Zhou talk about China; the auto industry gets a lift from Chinese consumers and regulators driving growth even as a surge in COVID-19 cases in the US and Europe tempers demand elsewhere.
Investment in electric vehicle manufacturing has been in the news lately, with announcements from General Motors, Ford and FCA, as well as Volkswagen’s introduction of the ID.4 which will see production in the US.
Daimler, BMW and Honda are also expected to add US EV production by the end of the decade. In 2026, IHS Markit forecasts that about 10% of US light-vehicle production will be electric vehicles, compared with just under 4% in 2019.
With expectations for a Democratic president in the White House in January, vehicle emissions regulations may shift to more aggressive targets. Though the government has regulatory and incentive levers which could speed consumer adoption, the trajectory toward EVs is already set, relative to most automaker strategy and long-term investment plans. The increased manufacturing is bringing more models to market, delivering more consumer choice. Increased choice and availability will be as critical to increasing consumer adoption as incentives or regulations.
I’m Stephanie Brinley and this has been an IHS Markit Minute.
There is a clear focus on new revenue sources in the automotive industry, as mobility, electrification, autonomy, and connectivity continue to democratize for a post-COVID world.
Connected services are one way automakers can grow revenues, yet many still see it as a cost, not a profit center. In many cases, automakers see paltry renewal rates from 15-30% post trial, which is neither sustainable nor profitable.
In a recent IHS Markit study, six premium brands in the US market were evaluated and indexed, investigating the intersection of consumer opinions and competitive metrics on connected features.
Tesla and Cadillac indexed above the average, whereas BMW, Audi, Mercedes and Genesis indexed below. These results illustrate that the top two brands have a deeper integration of connected services across their organizations that drive higher customer satisfaction and revenues.
As the industry works to recover the sales and revenue levels it enjoyed before the pandemic, those with a structural focus on connected services will find a competitive advantage amongst the market.
I’m Mark Boyadjis, with an IHS Markit Minute.
October is National Cybersecurity Awareness Month!
Connected cars provide ample motivation to implement cybersecurity measures. But the expansion of automated driving gives further reason for safeguarding the vehicle. IHS Markit forecasts that more than half of all new vehicle sales globally in 2022 will have some automated vehicle control feature.
In recognition of these growing risks, automakers are responding with best practices in cybersecurity, and regulators across regions are taking action as well.
Japan will be first to adopt new cybersecurity requirements for all new vehicles sold after January 2021. The European Union will do the same in July 2022, alongside the adoption of new requirements for active safety and automated driving.
We estimate that solutions to manage cybersecurity threats will produce annual revenues of more than 400 million US dollars globally in 2022.
I’m Jeremy Carlson with an IHS Markit Minute.
A Closer Look at One SUV Category
The sub-compact SUV category is one of the smaller SUV segments, based on market share, but it has contributed to the remarkable success of SUVs in general.
Sub-compact SUVs’ share of the U.S. market has grown from 3.4% at the start of 2016 to 4.6% now, and while this may not seem like much, it’s a 34 percent increase – which ranks second among all mainstream SUV segments.
Also, sub-compact SUVs continue to act as a “feeder” segment to both compact and midsize SUV categories, with 24% and 8% of consumers moving up to these two segments, respectively. In fact, households with a sub-compact SUV in their garage move up to a compact SUV more often than they move to any segment other than their own.
Lastly, households with a sub-compact SUV in the garage are exceptionally brand loyal; their brand loyalty of 55% in the first seven months of 2020 is higher than overall industry-wide brand loyalty and second among all mainstream SUV categories.
I’m Tom Libby with an IHS Markit Minute.
Melanie Erff, Mike Wall and Tanja Linken talk about how the COVID-19 pandemic has impacted the global automotive retail with respect to challenges faced by dealerships and customers' expectation in their purchase process and future interactions.
The automotive industry has been working at a fever pitch since late May when we emerged from the COVID-19 driven output closures. The combination of depleted vehicle inventories and a strong sales pace has equated to the industry’s inability to return to normal inventory levels until early next year. Even with a 2-month break, we will still build approximately 13 million light vehicles in North America for 2020.
Outside of these short-term market disruptions, smarter suppliers are still looking past next quarter to the future. Our industry is in the midst of significant structural shifts surrounding vehicle electrification, autonomous driving system content and a changing vehicle value equation.
If you are a supplier, strategic questions surround your future risk profile, financial performance and how these changes impact future competitiveness. Does one benefit from these shifts, suffer a declining market or in some cases – are you agnostic? Whatever the perspective, these shifting industry dynamics call for a Supplier Strategy Reset.
This has been Michael Robinet with an IHS Markit Minute.
A recent analysis of IHS Markit new light vehicle registrations through July this year finds sport utilities account for 50% of all new vehicle registrations, up from 31% ten years ago. If today’s mix continues for the remainder of this year, it would mark the first time in recent history that one body style has captured half of the U.S. new vehicle industry. Market share for mainstream pickups has also grown, driven in part by intense competition among the domestic manufacturers that dominate this space. Through July, pickups account for 19.9% of all new vehicle registrations in the US, outpacing sedans for the first time in recent history. With SUV/CUVs and pickups now accounting for more than two thirds of all U.S. new vehicle registrations, manufacturers need to ensure that their product portfolios align with this new paradigm. I’m Tom Libby with an IHS Markit Minute.
So you’re looking to purchase a new car in the state of California in 2035? Well, you can have any powertrain you want, as long as it’s electric!
California Governor Gavin Newson signed an executive order setting a goal of requiring all new passenger cars and trucks sold in the state to be zero-emission vehicles, which are battery electric or fuel cell, by 2035.
Now all of this comes as California remains locked in a legal battle with the Trump administration. The state is suing over to reinstate a waiver that allows it to set its own fuel economy standards that are separate from the federal government’s. If Donald Trump is re-elected, we expect the battle to be decided in the courts. But if Joe Biden is elected, we expect California to have its waiver reinstated.
So you may be asking, “Can automakers just choose not to sell cars in California if it does not want to invest in an entire fleet of electric vehicles just to fill a dealership?” Sure, but California is the biggest light vehicle market in the United States, representing 11% of total US sales last year. That really makes it a state that can’t be ignored by the automotive companies.
I’m Devin Lindsay, with the IHS Markit Minute.
US-based NVIDIA announces intent to acquire UK-based Arm for $40B.
You may not know Arm by name, but the company’s intellectual property is shipped in tens of billions of integrated circuits every year. In automotive, four out of every five processors in infotainment and driver assistance are based on Arm architectures—including those from NVIDIA.
Both Arm and NVIDIA have long lists of ecosystem partners and a growing footprint in Autonomous Driving. But the combination of Arm expertise in scalable CPU design, plus NVIDIA expertise in GPUs and software, could create a one-stop-shop for anyone looking for automotive processors. The open nature of Arm architectures gives freedom to automotive engineers to develop and deploy scalable solutions from today’s driver assistance to tomorrow’s autonomous mobility… pending regulatory approvals, of course.
I’m Jeremy Carlson with an IHS Markit Minute.
Kristen Balasia, Anoop Desai and Thomas Libby talk about how the COVID-19 pandemic has impacted global emissions and fuel regulations, and how regional markets and manufacturers respond to this.
North American auto production is expected to drop to 12.9 million units in 2020. However, the need to replenish inventories and more robust pace of sales is indicating the recovery is stronger than expected. IHS Markit expects North American production will reach 15.2 million units in 2021.
Michael Robinet discusses recent automaker partnerships including two by GM with Honda and Nikola; FCA with PSA; and Ford's alignment with VW.
In this podcast, Stephanie Brinley discusses Jeep's reentry into the full-size SUV segment. On September 3, 2020, Jeep will reveal the new Wagoneer and Grand Wagoneer via virtual events amid the COVID-19 pandemic. The full-size SUV segment has relatively few players. In 2019, this segment accounted for 2.4% of total US light vehicle sales.
US sales figures from July reflect sustained retail sales levels. The outlook for second half of year remains opaque but shows people are willing, able and ready to entertain a new car purchase. IHS Markit upgrades its outlook to 13.6 million units for the full year.
Kristen Balasia, Joseph Kyriakoza and Melanie Erff talk about the accelerated change of automotive retail due to the COVID-19 pandemic impact.
Todd Campau discusses the average age of vehicles in the United States. With nearly 280 million vehicles on the road the average age is approaching 12 years. 25% of these vehicles are 16 years of age or older. The average age of vehicles is expected to increase further due to COVID-19 work from home policies and the reduced number of vehicle miles traveled which extends a vehicle's life.
With 2.5 months of lost output and revenue, strategy is front and center for the North America auto industry.
New registrations this year in the US are down 35% from a year ago and are vastly different from last year.
Kristen Balasia, Mike Wall and Tom Libby talks about the automotive recovery from Covid-19.
As suppliers brace for potential after effects of COVID-19, Michael Robinet looks at today's challenges and compares them with the recession of 2008/9
With IHS Markit forecasting sales of 13.2 million light vehicles in 2020, Stephanie Brinley looks at demand for different vehicle segments.
Stephanie Brinley looks at the technology race that Ford, GM and FCA have created in full-sized pick ups.
North America automotive parts suppliers add the new USMCA trade agreement to their list of current challenges.
The automotive industry is ramping up efforts to address consumer concerns around COVID-19. Jeremy Carlson discusses results from a survey related to antimicrobial features in a vehicle.
Stephanie Brinley discusses the US automotive restart. IHS Markit forecasts the US sales will fall to 12.5 million units.
Michael Robinet looks at the unknown post-COVID environment that awaits automakers and suppliers as they restart production.
As the global automotive market has creatively and painstakingly been enduring the COVID-19 pandemic, a new challenge awaits. While the industry looks to cautiously restart, considerations range from overall supply chain readiness and workforce safety to uncertain consumer demand and behavior. What new practices and policies will remain in the post-COVID world propelling some players forward while presenting obstacles and risk for others?
Jeremy Carlson discusses results from a recent survey that asked 100 global OEMs and suppliers what the effects of the pandemic would be on automotive revenues, R&D, and technology
Stephanie Brinley discusses the current status of global automotive sales and production
As the automotive industry works to navigate the unprecedented challenges COVID-19 brings to automotive sales, service and distribution, creative approaches are being seen across the board. Limitations on face-to-face interactions are forcing OEMs and dealers alike to accelerate their retail transformation efforts. For the first time, consumers who need or want to buy, trade-in or service their vehicle are experiencing a new way of having to do this. Establishing online end-to-end sales processes along with touchless deliveries and service experiences are booming and will change the way consumers will expect to engage even after these restrictions are lifted. The more traditional players are working fast to identify, invest and establish these virtual capabilities while those who have been leading the way are looking to leverage this to secure their businesses.
Michael Robinet discusses the steps the automotive industry will need to consider while recovering from COVID-19.
Stephanie Brinley discusses the North America light vehicle assembly numbers amid the COVID-19 pandemic. OEM plants will results in a production loss of 570,000 light vehicles in March and April.
Hybrid and Electric Vehicles with Jeremy Carlson. Results from the IHS Markit E-Mobility Survey.
With a flattening US market and an increasing number of general market consumers moving to SUVs and trucks, there is an interesting opportunity that can be found within the multi-cultural consumer base. This base is a growing and dynamic market that in some cases, doesn’t follow the mega trends so often in the news. Join us as we dig into the multi-cultural automotive buyer and navigate the opportunity.
Geneva motor show’s cancellation due to the coronavirus had automakers pivoting to virtual reveals. New products included concepts from BMW and Hyundai.
Geneva motor show’s cancellation due to the coronavirus had automakers pivoting to virtual reveals. New products included concepts from BMW and Hyundai.
Chris Hopson takes a look at the global impact of the Coronavirus on the automotive industry
Stephanie Brinley looks at the launch of the Cadillac Escalade and the Jeep Gladiator Mojave
As the rate of change across the automotive industry accelerates, companies are being challenged to respond at breakneck speeds to M&A activities that involve electrification, automation, and software capabilities. Investors are well positioned and eager to buy which only adds to the pressure in an area that is still new to many traditional players. Join us for our next episode of Fuel for Thought as we discuss industry alignments and which players are going to be most active. We will also take a look at possible divestments in traditional vehicle components that could free up capital, enabling investors to expand their footprint and scale the newest technologies.
Automotive suppliers are at a crossroads. With plateauing volumes, EVs and AVs - there is a lot to react to. Michael Robinet provides his thoughts.
As US light vehicles sales topped 17 million in 2019 for the 5th consecutive year, Chris Hopson takes a look at the 2020 outlook.
The new decade brings the future of mobility into focus. Listen to IHS Markit’s recap of the 2020 CES, highlighting key announcements and how the CASE mega-trends are evolving into tangible deployments. Mark Boyadjis and Kristen Balasia will discuss how the automotive industry is delivering on end-customer needs for CASE—Connected, Automated, Shared and Electrified—products and services.
The new decade brings the future of mobility into focus. Listen to IHS Markit’s recap of the 2020 CES, highlighting key announcements and how the CASE mega-trends are evolving into tangible deployments. Mark Boyadjis and Kristen Balasia will discuss how the automotive industry is delivering on end-customer needs for CASE—Connected, Automated, Shared and Electrified—products and services.
The number of vehicles in the United States with a PHEV option – the least popular electrification solution – reached 30 models in 2018, but demand has cooled in 2019.
Devin Lindsay discusses vehicles on display at the LA Auto Show. Automakers remain focused on the CUV segment.
Listen as Chris Hopson discusses light vehicle demand levels in North America and specifically in Mexico where demand is down 7.5%.
Stephanie Brinley discusses electric vehicle introductions at the Los Angeles Auto Show
As 2019 comes to an end, listen to Chris Hopson as he discusses US light vehicle sales volumes for 2019 which are expected to exceed 17 million for the 5th year in a row.
Stephanie Brinley discusses electrification developments that were on display at the North America Commercial Vehicle Show in Atlanta.
As automotive aftermarket leaders converge on Las Vegas at AAPEX and SEMA shows, the size and age of US light vehicle fleet continues to rise.
Listen as Stephanie Brinley takes a look new vehicles that will be on display at the Tokyo Motor Show.
September US light vehicle demand update. Sales pace has remained steady despite noise from DC and stock market volatility. IHS Markit expects 2019 auto sales in to reach 17.1 million units down from 17.3 in 2018.
IHS Markit expects EV share of new vehicle registrations in the United States to reach 8% by 2025. Regulations, pricing, technology and infrastructure — including overcoming the dreaded range-anxiety — are all key to moving consumers away from internal combustion engines. Join us on October 8 as Kristen Balasia, Holger Hausmann and Bruce Harrison discuss the current state and next steps of EV adoption in the US market.
Ethnic consumers continue to buy sedans. With the ethnic population set to become the US majority in 2043, what does this mean for brands who no longer offer sedans?
Listen as Chris Hopson discusses global automotive demand results..."things will get worse before they get better".
The impact of the multi-cultural consumer on the US automotive industry is increasing in surprising ways. This influence goes beyond sales, to marketing efforts, dealer engagement, technology adoption and segment preferences. Join us to gain a better understanding of the drivers within this key and growing market to help shape your strategies to best serve the growing multi-cultural consumer.
EV represent a record 1.3% of overall US light vehicle market, more than double two years ago. Loyalty to electric vehicles is has been above 50% for three quarters in a row. IHS Markit expects to see the EV share increase in the near term with a forecast of 8% by 2025.
IHS Markit forecast there will be 420 nameplates in the United States in 2026 compared with about 350 in 2018. This will lead to a new level of market crowding and prove challenging as the market slows.
Connected vehicles have provided users with myriad services to keep their connected lifestyle intact, while on the move. However, these connections also offer a potential surplus of opportunities to a burgeoning marketplace of data suppliers, brokers, aggregators, and buyers, hungry to monetize the value of connected vehicle data. Privacy concerns and scaling analytics and insights present considerable challenges. Yet, one thing is for sure: while the industry experiments—as a whole—with new business models, the value of data will become a central tenet of the future of mobility.
In 60 seconds: Trade friction, shifting currencies, increased electric propulsion, the impact of autonomous driving, and declining North American vehicle production make it a challenging time for automotive suppliers. They need to find new ways to adapt.
Listen as IHS Markit’s Michael Robinet discusses how automakers are likely to introduce innovations.
Last decade electric powertrains looked poised to make a comeback. But the internal combustion engine (ICE) has made improvements of its own. Smaller engines with direct injection and turbochargers under the hood have given the ICE engine new life. Approximately 85% of vehicles produced by 2030 in the US will feature an ICE including some electric vehicles.
Average age of light vehicles set a new record in 2019 at 11.8 years. Better technology and overall quality improvements are key drivers of rising average vehicle age. Light vehicles in operation have also reached a record level with more than 278 million vehicles on the road. Both trends are very good for the automotive aftermarket.
The importance of China transcends its position as the largest global market. The regulatory structure promoting increased electrification as well as a number of startup OEMs in the BEV space underscore the longer-term Sino ambitions. Key global OEMs need to have China’s propulsion considerations as a central hub of future propulsion strategies – thus impacting economies of scale for the globe. Suppliers must have China’s impact on volume, technology and scale as a key focus for future strategy.
Sports cars have been in decline for more than a decade in the United States. Yet automakers demonstrate and refine performance technology through sports cars.
Automotive suppliers are grappling with short and long term issues such as trade disruptions, rising commodity costs, increased competition, finding new talent, and longer-term structural factors like electrified propulsion, driver assist systems and connectivity.
Aurora – the self-driving technology company – partners with FCA for commercial vehicles. Hyundia and Kia plan to include have a goal of launching Aurora autonomous capabilities on passenger vehicles in 2021.
The vehicle buyer journey is a rapidly changing landscape as technology, consumer expectations and lifestyle factors evolve including the interaction and relationship with the brand and the dealership. There are key factors that contribute to a customer’s loyalty or defection when they consider purchasing a vehicle – and critical loyalty drivers can vary by brand. As consumers demand an enhanced overall retail experience, customer convenience will likely emerge as a leading retention factor. Join Kristen Balasia and Melanie Erff as they discuss new vehicle buying trends.
May automotive sales in the US jumped back to a 17.3/17.4 million SAAR rate. IHS Markit anticipates full year sales volume of 16.8 million units in 2019, down from last year.
EVs to make up 7% of US Light Vehicle Sales in 2026 including 130+ nameplates offering an EV option. About 60% will be utility vehicles – sub-compact to full size.
The evolution of powertrain technology will result in smaller engines, increased number of electric and hybrid vehicles and increases in fuel saving technology. As miles per gallon goes up, fuel tax revenue will go down. State revenues will be impacted.
Trade dispute with China has a significant impact on the US automotive industry. China is seeking to be a significant player in the race towards electrified vehicles.
The commercial vehicle market is beginning to embrace alternative powertrain technologies. In this episode we will explore the viability of these technologies, the likelihood of adoption, and the pathway forward for these alternative powertrains. Additionally, we will explore how the decisions from an industry that is focused heavily on cost-benefit impacts the likely adoption trend in the passenger vehicle industry. Join Kristen Balasia and Matt Trentacosta as they discuss this important topic.
In April 2019 US light vehicle sales saw a decline. Bright spot in early performance of new products mostly in SUV segments.
IHS Markit forecasts light vehicle production for North American will decline 1.6% in 2019. However, utility vehicles and pick up trucks will grow.
Hear IHS Markit’s Stephanie Brinley discuss vehicles debutting at the New York International Auto Show.
Fully electric vehicles in the US reach record volumes along with EV loyalty rates. More EV platforms to be rolled out over next decade providing more choice.
By now, everyone has heard the noble truth about the future of powertrain development around the globe: “This is the last generation of ICEs ever to be built!” While the shift to electric vehicles may be inevitable, the journey to make them a reality is going to be very complex and time consuming. Is there enough capacity to build the battery packs required? Will oil producing countries give up producing a critical natural resource to protect the health of the planet? Will the technology advance quickly enough to enable faster charging and greater range necessary to get customers to choose electrons over oil?
Our industry is facing an unprecedented number of secular and cyclical drivers impacting vehicle production volumes. Trade actions, consumer preferences, economic uncertainty abroad, as well as shifting input prices are presenting significant headwinds. Michael Robinet and Kristen Balasia discuss these key drivers and potential solutions suppliers utilize to better anticipate and mitigate negative impacts.
Trade disputes and automotive markets. 3 critical trade conflicts: (1)Tariff on US Automotive Imports (2) Brexit weighs on both EU and UK (3) US and China trade disputes. Barring these conflicts we expect global light vehicles sales to resume growth in 2019.
Updates to heavy duty pick up trucks. including advanced driver assist systems. New marketing campaigns for light duty trucks. Expected to maintain market share.
As the industry prepares to launch new MaaS platforms, the incumbent supply chain will have to adapt and/or consolidate to sustain revenue and profit. The shift is driven largely via the emerging power and headstart of mobility providers, many of which do not have direct ties to OEMs. These new players to the industry are laser-focused on the customer experience and customer data, and are seeking to commoditize the very existence of the automotive product as the industry slowly shifts over to a service model. What are traditional suppliers doing to stay relevant in this time of rapid change? Mark Boyadjis and Kristen Balasia discuss the issue.
Focus on existing customers. Three measurable actions that can increase brand loyalty: (1) Finance through captive lender, (2) Service with OEM dealer network, and (3) Certified Pre-owned Vehicles.
Jeremy Carlson provides his impressions at the Consumer Electronics Show related to automated and autonomous driving on display.
This week (27 December 2018), Chris Hopson takes a look at 2019 automotive sales in 2018/2019