Pub. 18 2019-2020 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 25 new jersey auto retailer W W W . N J C A R . O R G SUV Market Share Marches Higher During Past Five Years “Trucks are hot, cars are NOT!” This has been an ongoing theme in the New Jersey new vehicle market for quite some time, and this trend is clearly depicted on the accompanying graph, which shows mar- ket share for primary segments in New Jersey during the first seven months of 2014 versus 2019. Not surprisingly, SUV and truck market share has increased sig- nificantly during the period. Market share for non-luxury SUVs increased from 33% in 2014 to 45% in 2019, while luxury SUV share grew from 8% to 13%. Combined market share for all SUVs expanded by 17 share points during the past five years. There are several key factors that have led to the significant growth in SUV sales. Higher roof lines and greater ground clearance allow for easier entry and exit, adequate seating, and more cargo space than similarly sized sedans and hatch- backs. And over the years, manufacturers have made significant progress in addressing the primary shortcoming of SUVs: poor fuel economy. Reductions in vehicle weight, more fuel-efficient engines, and a bevy of new compact SUV models have led to significant improvements in fuel efficiency. The biggest decline during the five-year period was for non-luxury, mid-size and large cars. Once the largest in New Jersey, the segment accounted for just 10% of the market in 2019, down from 18% in 2014. Small car market share also declined sharply, falling from 19% in 2014 to 13% in 2019. 0 50000 100000 150000 200000 250000 300000 350000 2012 2013 2014 2015 2016 2017 2018 2019 New Jersey New and 6 Yeard Old Used Vehicle Regisrations - YTD thru July, 2012 thru 2019 6 year old or newer used light vehicle registrations New retail light vehicle registrations 33% 8% 19% 9% 18% 13% 45% 13% 13% 10% 10% 9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Non Luxury SUVs Luxury SUVs Small Cars Pickups and Vans Non Luxury Mid Size & LargeCars Luxury & Sports Cars Marketshare Segment Market Shares in New Jersey New Vehicle Market - YTD '14 thru July and YTD '19 thru July YTD 2014 YTD 2019 Used Vehicle Market Gains Strength During Past Several Years Vehicle shoppers always have the choice to purchase a new or a used vehicle. And as shown on the accompanying graph, New Jersey consumers are increasingly making the choice to purchase used. The graph shows registrations for new vehicles and six-year-old or newer used vehicles. As clearly demonstrated, the gap between the two markets is narrowing. During the past five years ( 2014 to 2019, year-to-date thru July ), six-year-old or newer used vehicle registrations in the State increased by 38%, while new registrations were up by only 2%. Above-average new vehicle sales between 2014 and 2019 has given a boost to the availability of late model used cars and trucks, putting downward pressure on used vehicle values. At the same time, new car prices have increased. Most of these factors are likely to intensify over the coming years. It wouldn’t be surprising if the six-year old or newer used vehicle market surpassed the new vehicle market within the next two or three years. Jeff Foltz is President of Auto Outlook, Inc., an inde - pendent automotive market research firm. He can be reached at autooutlook@me.com . Segement Market Shares in New Jersey New Vehicle Market - YTD 2014 thru July and YTD 2019 thru July New J rsey N w and Six-Year Old Used Vehicle Registrations - YT t r J l , t r 2019 Six-year old or newer us l ehicle registrations New ret il ligh i l registrations