1st Quarter 2019

KELLEY BLUE BOOK

BRAND WATCH:

NON-LUXURY SEGMENT

TOPLINE REPORT

W H A T I S B R A N D W A T C H T M ?

BRAND-LEVEL STUDY

135,000+ interviews

Since 2007

MODEL-LEVEL STUDY

75,000+ interviews

Since 2012

Captures brand and model

consideration & familiarity

among new-car shoppers

Tracks 12 factors important

to shoppers across all models

and 6 segments

Respondents are in-market

for a new vehicle and

recruited from KBB.com

O B J E C T I V E S / M E A S U R E S

What is important to consumers when shopping

for a new vehicle

How brands and models perform on factors most important to shoppers

within and across segments

How demographicgroups differ

B R A N D A N D M O D E L L E V E L

P E R C E P T I O N S T U D Y

Identify key factors driving vehicle purchase decisions and measure OEM brand equity within and across segments

W H A T C A N B R A N D W A T C H T M D O ?

Brand Watch, a shopper perception study, reveals trends in vehicle consideration among new car consumers

and provides insight into factors that influence purchase decisions.

SubaruOutback

ChevroletSilverado 1500

B R A N D W A T C H : N O N - L U X U R Y C O N S I D E R A T I O N

SUVs

WHICH BRANDS LEAD IN NON-LUXURY CONSIDERATION?

WHICH MODELS ARE CONSIDERED MOST AMONG NON-LUXURY

SHOPPERS?

WHICH FACTORS ARE MOST IMPORTANT TO NON-LUXURY

CONSUMERS?

Source: KBB Brand Watch Survey, Q4-2018/Q1-2019, (ties indicate identical values to the tenth of a point)

HondaCR-V

HondaAccord

Toyota Camry

HondaCivic

ToyotaRAV4Ford

F-150

Ford Explorer

1

2

3

4

5

6

7

8

9

10

11

13

14

15

Durability/Reliability

Reputation

SafetyInteriorLayout

Affordability

Exterior Styling

DrivingComfort

Technology

Driving Performance

Ruggedness

Fuel EfficiencyPrestige/Sophistication

#1 #7

#2 #8

#3 #9

#4 #10

#5 #11

#6 #12

Cars MinivansPickups

#19

#18

#16

#16

#15

#14

#13

#12

#11

#10

#9

#8

#7

#6

#5

#4

#3

#2

#1

ToyotaHighlander

MazdaCX-5

HondaPilot

SubaruForester

ToyotaTacoma

WHAT ARE OVERALL

SEGMENT PREFERENCES

AMONG NON-LUXURY

SHOPPERS?

America’s love for SUVs shows no sign of slowing down. Almost two-thirds of new-car shoppers consider an SUV, despite a rising average transaction price (ATP) of $38K for midsize and $29K for compact SUV. In Q1, SUV sales increased 5% year-over-year (YoY). Still, cars are not dead. Despite a

decline in consideration and sales, roughly 1 in 2 people put a car on their consideration list.

64% 45% 24% 6%

ToyotaCorolla

12

11th

A C L O S E R L O O K : O V E R A L L N O N - L U X U R Y S E G M E N T C O N S I D E R A T I O N

Source: KBB Brand Watch Survey, Q1-2018 to Q4-2018/Q1-2019

64% 62% 64%

Q1 '18 Q3-Q4 '18 Q4'18-Q1'19

Top

5

SU

VS

CA

RS

PIC

KU

PS

MIN

IVA

NS

#1 CR-V

#2 RAV4

#3 Forester

#4 Highlander

#5 Pilot

The pickup truck segment was the only segment posting YoY growth in consideration, thanks to new entries, including the Ford Ranger and

Jeep Gladiator that went on sale in the hot midsize truck segment in Q1 2019. The Detroit 3 and Toyota are planning to refresh their

offerings to capitalize on the big demands and profitability of trucks from now into early 2020.

Top

5

#1 Accord

#2 Civic

#3 Camry

#4 Corolla

#5 Mustang

Top

5

#1 F-150

#2 Silverado 1500

#3 Tacoma

#4 Ram 1500

#5 Tundra

Top

5

#1 Odyssey

#2 Sienna

#3 Pacifica

#4 Grand Caravan

#5 Sedona

47% 47% 45%

Q1 '18 Q3-Q4 '18 Q4'18-Q1'19

19% 22% 24%

Q1 '18 Q3-Q4 '18 Q4'18-Q1'19

7% 6% 6%

Q1 '18 Q3-Q4 '18 Q4'18-Q1'19

Honda CR-V was not only the No. 1 most considered

SUV, it was the most considered vehicle among all the

segments. CR-V was also the 3rd best-selling SUV with

relatively low incentives ($1800). Subaru also spends

It’s been 6 quarters since Accord and Civic held the

No. 1 & 2 spot in consideration. Despite being 3rd

in consideration, Toyota Camry is the best-selling

car in America, with Corolla following closely in 3rd.

Pickup sales in Q1 were up YoY by 5%. Ford

held a significant sales lead in 2019, more

than $100K+ ahead of Ram and Chevrolet.

With only 6% consideration and only 3% in

actual sales, the minivan is shrinking to a niche

segment. Despite being #1 in consideration,

Odyssey was only 21% of sales, while Grand

Caravan was No. 1 in sales, with about 35%

minivan market share.

#1

21%

Toyota won the 2019 KBB.com Brand

Image Award for Best Trucks with strong

consumer perception from America’s best-

selling midsize truck Tacoma and Tundra.

$

#1

Ford showed up with Mustang as the

only domestic vehicle in the top 5.

#1

little on incentives, yet the Subaru Forester has been in the

top 5 for the past 11 quarters. Forester and the redesigned

Outback were 11th and 12th in sales during Q1 2019.12th

12 7%

13 6%

14 5%

15 3%

16 1%

16 1%

18 1%

19 0.1%

A C L O S E R L O O K : O V E R A L L N O N - L U X U R Y B R A N D C O N S I D E R A T I O N

Source: KBB Brand Watch Survey, Q4-2018/Q1-2019 Q: Please select at most 5 vehicles that you are currently shopping

>20%

9-20%

<8%

RANK BRAND CONSIDERATION

5 18%

6 14%

7 12%

8 10%

9 10%

10 10%

11 9%

1 41%

2 35%

3 29%

4 25%

Toyota distanced itself from Honda to hold its 1st place in consideration for 4 quarters in a row. Toyota beat Ford with its 2nd ever KBB.com Brand Image Award (BIA) for Best Overall Truck. Toyota reduced incentives spend. In fact, over the past year, Toyota’s incentives remained

relatively low ($2000) and comparable to Honda’s ($1700). In contrast, FCA brands have had some of the highest incentives among all non-luxury brands - Chrysler ($5700), Ram ($5600) & Dodge ($4300).

Honda maintained 2nd place, though its

consideration dropped 3 percentage points YoY. Ford

Nissan held steady in 6th place, though

Rogue’s sales dipped 20% YoY. Jeep may

get more consideration with the Gladiator

pickup truck joining the lineup.

Although 14th in consideration, Ram

was 9th in overall Q1 sales, with a 15%

increase YoY. Ram confirmed that it will

produce a midsize truck to fill a gap in

its lineup.

Will this be the magic bullet to push Jeep up

the consideration ladder given that SUVs

and trucks are the hot segments right now?

#2

cemented its commitment to

electrification, announcing its

$11-billion investment in EVs

and partnership with EV pickup truck maker,

Rivian, to speed its own development of an EV pickup.

A C L O S E R L O O K : T O P C O N S I D E R E D N O N - L U X U R Y M O D E L S O V E R A L L

Source: KBB Brand Watch Survey, Q4-2018/Q1-2019

TO

P 1

5 M

OD

EL

S

#1 #2 #3 #4 #5

#6 #7 #8 #9 #10

#11 #12 #13 #14 #15

CR-VCompact SUV

ACCORDMidsize Car

CAMRY

Midsize Car

PILOT

Midsize SUV

FORESTERCompact SUV

SILVERADO 1500

Fullsize Truck

CIVIC

Compact Car

RAV4Compact SUV

F-150Fullsize Truck

HIGHLANDER

Midsize SUV

COROLLA

Compact Car

OUTBACK

Midsize SUV

TACOMA

Midsize Truck

SUVs are still top of mind for new-vehicle shoppers. In Q1, eight of the top 15 vehicles considered was a utility vehicle. Toyota showcased its

diverse lineup and consumer appeal with 5 vehicles (RAV4, Camry, Highlander, Tacoma & Corolla) in the top 15. Consumers alsolove Hondas

and Subarus. The only domestic brands on the board were Ford and Chevrolet for their iconic full-size pickup trucks.

CX-5

Compact SUV

EXPLORER

Midsize SUV

Compact SUVs have dominated

consumers’ consideration for

10 quarters in a row. The 4 top

best-selling SUVs happens to be

in the same segment (Rogue,

Equinox, CR-V and RAV4).

Cars are not dead! And

based on the popularity

and reliability of Honda

and Toyota cars, this

segment is here to stay.

Ford Explorer was the only

domestic SUV in the mix at 14th

place. However, it was the 5th

best-selling SUV, which is

Camry, Civic, Corolla, and Accord

remain the best-selling sedans in

America.

probably attributed to the

$5700 in incentives as

Ford sells down the current

model to make way for the

new one.

A C L O S E R L O O K : F A C T O R S O F I M P O R T A N C E D R I V I N G N O N - L U X U R Y V E H I C L E C O N S I D E R A T I O N

Source: KBB Brand Watch Survey, Q4-2018/Q1-2019Q: Please review the list below and rate how important are each of the factors to you in deciding on your next new car

1 Durability/Reliability 84%

2 Safety 71%

3 Affordability 65%

4 Driving Comfort 62%

5 Driving Performance 54%

6 Fuel Efficiency 48%

7 Reputation 48%

8 Interior Layout 39%

9 Technology 38%

10 Exterior Styling 33%

11 Ruggedness 27%

12Prestige/

Sophistication11%

RANK FACTOR IMPORTANCETOP RANKED

BRAND

TO

P 5

Affordability jumped in importance by 6%, and Fuel Efficiency by 9% YoY as consumers look for ways to save money. As gas prices and ATPs have risen, value brands like Honda and Hyundai are top of mind when people shop for a new car. Emotional factors gained in

importance for shoppers who value Technology, Exterior Styling, and Prestige/Sophistication.

#2 #3

Toyota Subaru

Honda Toyota

Mazda Honda

Honda Chrysler

Subaru Ram

Hyundai Mazda

Subaru Toyota

Mazda Honda

Ram GMC

Ram GMC

Ram Subaru

GMC Subaru

Honda was the big winner at the New

York Auto Show with three 2019 KBB

Brand Image Awards. Honda won Best

Overall, Best Value, and Most Refined

Mazda was KBB’s 2019 BIA

winner for the Best Performance

Brand. Mazda's reputation as a

performance brand is well

deserved because its cars are the

most fun-to-drive in their

segments.

Ram was No.1 in Interior Layout and

is well positioned in 2nd place for

several factors (Technology, Exterior

Styling, and Ruggedness).

#1

Brand. Subaru took home the

Most Trusted Brand Award, an

attribute the brand has worked

to instill in consumers’ minds.

B R A N D W A T C H T O P L I N E

For all sales or client success inquiries, please contact: OEM Sales Analytics Consultingkbb.SA-OEMConsulting@coxautoinc.com

For all other inquiries, please contact:Mai.Nguyen@coxautoinc.com Vanessa.Ton@coxautoinc.com