2018 PICKUP TRUCK STUDYJ U L Y 2 0 1 8
Truck Survey Background
Goals and Objectives:• Assess economic factors affecting truck market share
• Determine shopper consideration and opinions of mid-size and full-size trucks
• Identify shopper preferences and the most important consideration features when purchasing
Methodology and Sample: • Online quantitative survey fielded to U.S. consumers visiting KBB.com
• Respondents answered on either a desktop or mobile device
• In order to be eligible for this survey, respondents had to be:
• Purchasing/leasing a mid-size/full-size truck in the next 12 months
• Considering one or more mid-size trucks (Tacoma, Colorado, Ranger, Canyon, Ridgeline, Gladiator, Frontier)
• Considering one or more full-size trucks (Chevrolet Silverado 1500, Chevrolet Silverado 2500/3500 HD, Ford F-150, Ford F-250/F-350/F-450 Super
Duty, GMC Sierra 1500, GMC Sierra 2500/3500 HD, Nissan Titan, Nissan Titan XD, Ram 1500, Ram 2500/3500/4450, Toyota Tundra)
• Mid-Size Truck N=764; Full-Size Truck N=1369
Field Dates: January 2018 to April 2018
ECONOMIC FACTORSDRIVING TRUCK SALES
Economic Outlook Remains Optimistic
Source: Federal Reserve, Moody’s Analytics
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
REAL GDP GROWTH RATE
Headwinds Lead to Only Modest Decline in 2018
Source: Cox Automotive, June 2018
16.8
8
9
10
11
12
13
14
15
16
17
18
19
68
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
LIGHT VEHICLE SALES OUTLOOK (MILLIONS)
Cox Automotive Full-Year Forecasts
2018 2019 2020
16.8 16.4 16.5(Up 100K from earlier forecast)
Pickup Sales Are Strong Across Brands
Source: Statista, February 2018
0
500
1000
1500
2000
2500
3000
3500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
in t
housands
PICKUP TRUCKS VOLUME (IN THOUSANDS)
Honda
Nissan
GMC
Toyota
Ram
Chevrolet
Ford
Trucks Significant Driver of Revenues Across All Brands
Source: Statista, February 2018
0
20000
40000
60000
80000
100000
120000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
in m
illio
n U
SD
PICKUP TRUCKS REVENUE (IN MILLION USD)
Honda
Nissan
Toyota
GMC
Ram
Ford
Chevrolet
Pickup Truck Share Expands While Cars Decline
Source: HIS/Markit, U.S. Automotive Sales Forecast April 2018
FULL-SIZE
TRUCK
MID-SIZE
TRUCK
COMPACT
CAR
MID-SIZE
CAR
COMPACT
SUV
MID-SIZE
SUV
between
12-14%between
3-4%between
16-13%between
20-13%between
20-29%between
16-18%
from 2015-2025
Truck Consideration Steady; Expected to Climb as New Models Arrive(Ford Ranger, GMC Sierra 1500, Ram 1500, Chevrolet Silverado)
Source: KBB.com Brand Watch Q1 2018 Please select at most 5 vehicles that you are currently shopping.
4%
7%
8%
17%
18%
20%
39%
59%
Luxury Coupe
Minivan
Non-luxury Coupe
Pickup
Luxury Sedan
Luxury Utility Vehicle
Non-luxury Sedan
Non-luxury Utility Vehicle
SEGMENT CONSIDERATION
0%
5%
10%
15%
20%
25%
2015 2016 2017 2018
T R E N D E D P I C K U P C O N S I D E R A T I O N
Economic Expansion Drives Construction and Truck Sales
Source: U.S. Census Bureau, 2007-2018 Construction Spending – Total Construction including both Public and Private Sectors
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Jan
-200
7
Ma
r-2
007
Ma
y-2
00
7
Jul-
200
7
Se
p-2
00
7
Nov-2
007
Jan
-200
8
Ma
r-2
008
Ma
y-2
00
8
Jul-
200
8
Se
p-2
00
8
No
v-2
008
Jan
-200
9
Ma
r-2
009
Ma
y-2
00
9
Jul-
200
9
Se
p-2
00
9
No
v-2
009
Jan
-201
0
Ma
r-2
010
Ma
y-2
01
0
Jul-
201
0
Se
p-2
01
0
Nov-2
010
Jan
-201
1
Ma
r-2
011
Ma
y-2
01
1
Jul-
201
1
Se
p-2
01
1
Nov-2
011
Jan
-201
2
Ma
r-2
012
Ma
y-2
01
2
Jul-
201
2
Se
p-2
01
2
Nov-2
012
Jan
-201
3
Ma
r-2
013
Ma
y-2
01
3
Jul-
201
3
Se
p-2
01
3
Nov-2
013
Jan
-201
4
Ma
r-2
014
Ma
y-2
01
4
Jul-
201
4
Se
p-2
01
4
Nov-2
014
Jan
-201
5
Ma
r-2
015
Ma
y-2
01
5
Jul-
201
5
Se
p-2
01
5
Nov-2
015
Jan
-201
6
Ma
r-2
016
Ma
y-2
01
6
Jul-
201
6
Se
p-2
01
6
Nov-2
016
Jan
-201
7
Ma
r-2
017
Ma
y-2
01
7
Jul-
201
7
Se
p-2
01
7
Nov-2
017
Jan
-201
8
TOTAL CONSTRUCTION INVESTMENT (IN MILLIONS OF DOLLARS)
New Construction, Builder Confidence Bode Well for Truck Sales
Source: U.S. Census Bureau: New Residential Sales, April 2018Source: NAHB/Wells Fargo National and Regional Housing Market Index (HMI), May 2018
-
100
200
300
400
500
600
700
800
Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18
HOME SALES
+12% Y/Y
-1% M/M
593,000662,000
58
60
62
64
66
68
70
72
74
76
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18
BUILDER CONFIDENCE
6970
+1% Y/Y
+1% M/M
WHO ARE TRUCK BUYERS?
Respondent Demographics
Source: KBB.com Mid-Size Truck Survey, 2018, N=764, Full-Size Truck Survey, 2018, N=1369
MedianIncome
Gender (Male)
60K
70K
MID-SIZE
FULL-SIZE
84%
89%
53
46
Median Age
Ethnicity
75%
6% 4% 1%
72%
8%3% 2%
Caucasian Hispanic African-American Asian
FULL-SIZEMID-SIZE
Truck Intenders are Mainly Purchasers vs. Lessees
Source: KBB.com Mid-Size and Full-Size Truck Surveys, 2018Q7: Do you plan to purchase or lease your new truck? (N=764)
PURCHASE/LEASE INTENTIONSPurchase Lease
95%
5%
Mid-Size Truck
95%
5%
Full-Size Truck
90%
10%
Compared to Non-Lux SUVs
9YEARS
8YEARS
Mid-Size Truck Full-Size Truck
Average # of Years Shoppers Plan to Hold on to Their Trucks
Source: KBB.com Mid-Size Truck Survey and Full-Size Truck Survey, 2018Q25: When buying a mid-size truck, do you have a preference for where the brand is headquartered? (N=764)
Q25: When buying a full-size truck, do you have a preference for where the brand is headquartered? (N=1369)
PREFERENCE ON WHERE A TRUCK’S BRAND IS HEADQUARTERED
Full-Size Truck Shoppers are More Committed to Domestic Brands;
Mid-Size Considerers are More Likely Neutral to Country of Origin
71%
1%
28%
31%
11%
58%
Domestic
Japan
I have no preference
Full-Size Mid-Size
Full-Size Truck Shoppers Most Loyal Owners.Mid-Size Truck Shoppers Least Loyal, Creating Conquest Opportunities.
Source: 2014-2018 KBB.com Traffic
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2015 2016 2017 2018
TRENDED SHOPPER LOYALTY
Compact Car Mid-size Car Compact SUV Mid-size SUV Mid-size Truck Full-size Truck Average Loyalty
WHERE ARE TRUCK BUYERS?
Full-Size Pickups Dominate the Heartland.Mid-Size Trucks Proliferate on the Coasts.
Source: IHS/Markit – New Retail Vehicle Registrations March 2017 – March 2018
FULL-SIZE & MID-SIZE PICKUP TRUCK REGISTRATION SHARE
Full-Size Truck
Registration
Midsize-size Truck
Registration
There are Some Geographically Differences in Appeal… Full-Size Truck Share Tend to be Stronger in Middle America
Source: IHS/Markit – New Retail Vehicle Registrations March 2017 – March 2018
Highest Share %
• ND – 24.2%
• SD – 22.0%
• MT – 18.0%
• NE – 17.4%
• AR – 17.3%
Lowest Share %
• DC – 1.1%
• NJ – 4.1%
• CT – 4.9%
• CA – 5.7%
• MD – 5.8%
FULL-SIZE PICKUP TRUCK REGISTRATION SHARE
… While Mid-Size Trucks are Concentrated in Coastal Areas
Source: IHS/Markit – New Retail Vehicle Registrations March 2017 – March 2018
Highest Share %
• VT – 5.1%
• AK – 4.8%
• WV – 4.7%
• OR – 4.5%
• NM – 4.4%
Lowest Share %
• DC – 0.7%
• MI – 1.2%
• NJ – 1.4%
• NY – 1.5%
• IL – 1.6%
MID-SIZE PICKUP TRUCK REGISTRATION SHARE
WHY DO PEOPLE BUY TRUCKS?
Truck Shoppers Are Replacing a Truck or Adding a Truck to the Household Fleet
Source: KBB.com Mid-Size Truck Survey, 2018Q: Regarding your next truck purchase, what type of vehicle are you trading in for it? (Select all that apply.) (N=373)
40%
12%10%
4%2% 1%
32%
Truck SUV/CUV Sedan Coupe Hatchback/Wagon Van/Minivan NA, I'm not trading ina vehicle
TRADE IN VEHICLE FOR THE NEXT TRUCK PURCHASE
Shoppers Different Activities with Midsize, Work with Full-Size Trucks
Source: KBB.com Mid-Size Truck Survey, 2018Q28: Please classify the activities that goes best with each category. (N=764)
83%
61%
48%
20%
16%
17%
39%
52%
80%
84%
Towing/Hauling – Cars, Trailers
Home Improvement/Contract Projects
Towing/Hauling – ATV, Motorcycle
Outdoorsy – Camping/Surfing
Urban Delivery for Small Business
ACTIVITIES THAT GO BEST WITH SEGMENT
Mid-Size
Full-Size
Midsize Truck Defectors Heavily Shop Full-Size Trucks and SUVs,Creating an Opportunity to Target Outside of the Traditional Segment.
Source: KBB.com Traffic, Q1 2018 Read as: Mid-Size Truck and Full-Size Truck are cross shopping each other at the rate of 12.9% and Mid-Size Truck is defecting to Full-Size Truck at the rate of 28%
Full-Size Truck 12.9%
6.7%
6.6%
3.8%
3.7%
Mid-Size SUV
Compact SUV
Compact Car
Mid-Size Car
CROSS SHOPPING DEFECTION
MID-SIZETRUCK
Full-Size Truck 28.0%
18.9%
17.5%
10.5%
9.4%
Compact SUV
Mid-Size SUV
Compact Car
Mid-Size Car
While Mid-Size Truckers are More Likely to Upsize, Full-Size are Looking at SUVs
CROSS SHOPPING DEFECTION
Mid-Size Truck 3.8%
3.7%
3.2%
2.4%
2.3%
Mid-Size SUV
Compact SUV
Mid-Size Car
Compact Car
FULL-SIZETRUCK
Mid-Size SUV 20.7%
17.4%
10.5%
10.3%
10.0%
Compact SUV
Mid-Size Truck
Mid-Size Car
Compact Car
Source: KBB.com Traffic, Q1 2018 Read as: Full-Size Truck and Mid-Size Truck are cross shopping each other at the rate of 3.8% and Full-Size Truck is defecting to Mid-Size SUV at the rate of 20.7%
WHAT DO BUYERS WANT IN IN THEIR TRUCKS?
Reliability is The Most Important Factor To Shoppers, Followed by Best Value For My Budget, Then Good Brand Experience
Source: KBB.com Mid-Size Truck Survey and Full-Size Truck Survey, 2018Q23: Which of the following factors is the MOST important to you when considering a mid-size truck? (N=764)Q23: Which of the following factors is the MOST important to you when considering a full-size truck? (N=1369)
1.8%
2.4%
3.8%
4.3%
5.6%
5.8%
6.7%
8.2%
17.5%
31.3%
1.5%
2.6%
1.4%
6.6%
6.3%
6.7%
3.8%
10.7%
15.9%
26.6%
Safety ratings
Maintenance costs
Reviews/ratings/awards
Good experience with this same model
Driving comfort
Driving performance
Fuel economy
Good experience with this brand of vehicle
Best value for my budget
Reliability
MOST IMPORTANT FACTORS WHEN CONSIDERING...
Full-size
Mid-size
Full-Size Considerers Require More Truck Specific Features –Rugged Ones
Source: KBB.com Midsize and Full-Size Surveys, 2018 Q9: Of the following features, what are your must-haves for your next mid-size truck? (You can select up to 3 features.) (N=764)Q9: Of the following features, what are your must-haves for your next full-size truck? (You can select up to 3 features.) (N=1369)
Note: Sample was rebased with “NA, I don’t require any of these features” removed
1.7%
2.0%
2.7%
10.2%
10.2%
15.2%
16.7%
23.4%
23.7%
24.2%
24.4%
46.1%
1.0%
4.4%
3.3%
6.4%
4.4%
16.6%
17.7%
21.1%
14.8%
20.1%
45.0%
58.0%
GoPro mount on windshield
Remote power tailgate
Speakers in the bed
Extendable bed
Dual-action tailgate
Built-in Dashcam
Power outlet in truck bed
Wireless phone charging
Stowable rear seats
Hidden storage compartments
Trailer stability assist
Off-roading package
MUST-HAVES FOR NEXT TRUCKS
Full-Size
Mid-Size
REQUIRE SPECIFIC TRUCK FEATURES?
FULL-SIZE
57%YES
MID-SIZE
52%YES
AWD/4WD and Electronic Stability Control are Required by Truck Shoppers
Source: KBB.com Mid-Size Truck Survey and Full-Size Truck Survey, 2018Q24: Please select up to 5 features that your next mid-size/full-size truck must have in order for you to purchase it: (N=764, N=1369)
Note: Full list was 27 features
69%
40%
33%
20%
13%
57%
38%
30%
19%17%
AWD or 4WD Backup camera Bluetooth (allows phoneconnectivity)
Automatic headlights Electronic stability control(vehicle traction)
TOP 5 MUST-HAVE FEATURES
Full-Size Mid-Size
COMPARED TO
NON-LUX SUVS
NORMS
18% 36% 37% 21% 1%
Mid-Size Truck Shoppers Want Gas Engines; 1 in 10 Open to HybridsFull-Size Shoppers Most Open to Diesel
Source: KBB.com Mid-Size and Full-Size Truck Surveys, 2018Q8A: Which of the following fuel/power sources are you considering for your new truck? (Select all that apply.) (N=764, N=1369))
Q8B: What is the combined (city/highway) MPG you expect from your next mid-size/full-size truck? (N=764, N=1369))
2%
9%
13%
0%
94%
23%
24%
53%
Compressed natural gas (CNG)
Hybrid
Diesel
Considering both gas and diesel
Gasoline
FUEL/POWER SOURCE CONSIDERATION
Full-size Truck Mid-size Truck
Full-Size
Mid-Size
19.2
22.1
ON AVERAGE, CONSUMERS EXPECT
A COMBINED (CITY/HIGHWAY) MPG
Hybrid Truck Intentions Are Low but Alternative Fuel Trucks Are Coming
A-BATRAM 1500 with
Mild Hybrid System
F-150 Hybrid W-15
Mid-Size Trucks Shopped for “Outdoorsy” Dimension
Source: KBB.com Consumer Sentiment Survey (July-Dec, 2017) N = 7103
Full-Size Trucks Perceived as Outdoorsy AND Thrill Seeking.Domestic Partisanship is Key Factor.
Source: KBB.com Sentiment Survey (July-Dec, 2017) N = 7103
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Pre
dic
ted
Co
ns
ide
rati
on
Consideration Within Bottom 25% Overall Consideration Consideration Within Top 25%
Domestic
PartisanEco-
Conscious
Family
Oriented Financially
Responsible
Image
Conscious
OutdoorsySelf-
Confident
TechieThrill
Seeker
Fullsize Pickup
Source: KBB.com Mid-Size Truck Survey, 2018Q31: When considering a mid-size truck, which would you prefer when it comes to infotainment (e.g. to make hands-free calls, access navigation, control music)? (N=764)
Q32: Would a mid-size truck having Apple CarPlay/Android Auto make you more likely to purchase it? (N=764)
23%
11%66%
PREFERENCE ON INFOTAINMENT
Apple CarPlay and/or Android Auto
A proprietary system created by the manufacturer
I have no preference
6%
11%
15%
67%
INFLUENCE OF APPLE CARPLAY/ ANDROID AUTO ON PURCHASING
Extremely more likely to purchaseSomewhat more likely to purchaseSlightly more likely to purchaseNo influence at all
There is No Real Preference When it Comes To Infotainment
24%
14% 14%
5%
65%
Toyota Safety Sense Subaru EyeSight Honda Sensing Mazda i-Activsense NA, I have never heard of anyof these
% OF SHOPPERS WHO HAVE HEARD ABOUT SAFETY TECHNOLOGIES
There is an Opportunity to Boost Awareness of these Active Safety Systems. About a Third of Shoppers Have Heard of at Least One of the Active Safety Technologies
Source: KBB.com Mid-Size Truck Survey, 2018 Q33: Which of the following active safety technologies have you heard of? (N=764)Q34: With each active safety technology below, have you personally had an experience where the technology prevented an accident?
*Read as: Among those who heard of Toyota Safety Sense (24%), 22% have had an experience with Toyota Safety Sense in which it prevented an accident
22%* 18% 25% 20%
HAD AN EXPERIENCE WHERE THE TECHNOLOGY PREVENTED AN ACCIDENT
Price Perceptions are Lower than Actual ATPs. This is an Opportunity to Message the Starting Prices to Broaden Appeal.
Source: KBB.com Mid-Size Truck Survey and Full-Size Truck Survey, 2018Q13: Typically, mid-size/full-size trucks cost between $20,000 and $40,000. What is the MAXIMUM total price (including options) you will consider for your next new
mid-size/full-size truck purchase? (N=373)
2018 Average Transaction Price
$46,474 or $837 per month
Expected Price
NEW Mid-Sized Truck:
$26,699 or $481 per month
Expected Price
NEW Full-Sized Truck:
$38,529 or $694 per month
2018 Average Transaction Price
$32,848 or $592 per month
BUT WHAT ABOUT FUEL ECONOMY AND RISING GAS PRICES?
Trucks Now Dominate But What About These Higher Gas Prices?
Source: Bloomberg, AAA, Kelley Blue Book, Cox Automotive
Prices at the pump were up 24% Y/Y in May, amounting to about $24 more per vehicle per month in average fuel costs
53%
49% 48%51% 52%
50% 51%53%
57%
61%
65%68%$45.16
$52.52
$34.68
$38.36
$48.36
$52.03 $49.57
$45.61
$29.43
$25.58 $27.82
$34.53
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
TRUCK SHARE AND MONTHLY FUEL PREMIUM (ON NEW MODELS)
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Jan
-05
Au
g-0
5
Mar
-06
Oct
-06
May
-07
Dec
-07
Jul-
08
Feb
-09
Sep
-09
Ap
r-1
0
No
v-1
0
Jun
-11
Jan
-12
Au
g-1
2
Mar
-13
Oct
-13
May
-14
Dec
-14
Jul-
15
Feb
-16
Sep
-16
Ap
r-1
7
No
v-1
7
OIL AND UNLEADED GAS PRICES
WTI Cushing Spot Price Ave Gas Price Unleaded
Rising Oil/Gas Prices May Present Some Challenge to Truck Sales
Source: Bloomberg, AAA, Kelley Blue Book, Cox Automotive
0.80
1.30
1.80
2.30
2.80
May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18
GAS PRICES
Then (2008) And Now (2018): Gas Prices
Source: The Conference Board, Moody’s Analytics
CAR SUV TRUCK VAN OVERALL MPG
2008 24.8 18.6 16.0 17.8 21.4
2009 25.3 19.6 16.2 17.7 22.1
2010 25.8 20.4 16.3 18.0 22.3
2011 26.5 20.8 16.5 18.9 22.8
2012 27.7 21.2 16.5 19.1 23.7
2013 28.5 21.9 16.7 19.1 24.2
2014 28.9 22.3 17.2 19.2 24.5
2015 29.1 22.9 18.0 19.3 24.7
2016 29.4 23.1 18.1 19.4 24.6
2017 29.6 23.4 18.4 19.7 24.6
2018 29.9 23.7 18.5 19.6 24.7
21.4
22.122.3
22.8
23.7
24.224.5
24.7 24.6 24.6 24.7
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SUV CAR TRUCK
24.7% 20.5% 13.7%
FLEET IMPROVEMENT (2018 vs. 2008)
OVERALL MPG
Fuel Efficiency Gains Will Be Harder To Replicate Going Forward
Source: Kelley Blue Book, Cox Automotive
Even with aggressive goals, the savings diminish with each additional MPG relative to gains already realized
705.9
545.5
387.1
240.0
0
200
400
600
800
1,000
1,200
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
Gal
lon
s N
eed
ed P
er Y
ear
Miles Per Gallon
FUEL EFFICIENCY GAINS SEE DIMINISH SAVINGS
Truck MPG improvements since 2007 result in 160 less gallons needed
To replicate those gains, trucks need to get to 31 MPG
The next leap would require reaching 50 MPG
Consumers Also Point To $4 Per Gallon As A Tipping Point
Kelley Blue Book, May 2018 Consumer Survey
0%4%
25%
62%
8%
1%
13%18%
45%
22%
Much lower Somewhat lower Stay the same Somewhat higher Much higher
WHERE DO YOU EXPECT GAS PRICES TO BE IN….
30 Days 1 Year Median=
$2.50
Median=
$4.00
At what price per gallon would you consider gas to be reasonable?
At what price per gallon would you consider gas to be so expensive that it greatly affects the type of vehicle you would consider purchasing (i.e. sedan instead of SUV or hybrid instead of standard)?
IS THERE DEMAND FOR AN EVEN SMALLER TRUCK?
The Road Ahead
RETURN OF THE COMPACT PICKUP TRUCKS OF THE 80’S AND 90’S?
Small Truck Could Fill a White Space Missed by Full-Size and Mid-Size
Source: KBB.com Quick Polls, May 29 to June 6, 2018 (N=405)Question: If a small pickup truck (smaller in size than a mid-size truck such as the Toyota Tacoma, Chevy Colorado) were available in the market, how interested
would you be in buying or leasing one?
PURCHASE/LEASE INTEREST IN SMALL PICKUP TRUCK
AMONG THOSE WHO ARE IN MARKET FOR TRUCKS
24%
12%
13%
51%
Very Interest Somewhat Interested Slightly Interested Not Interested At All
Small Truck May Capture Shoppers Looking for More MPG and Affordability
Source: KBB.com Quick Polls, May 29 to June 6, 2018 (N=348)Question: What is the main advantage of a smaller pickup truck vs. a mid-size truck (e.g. Toyota Tacoma Chevy Colorado)? (select top 3)
32%
26%
17%
7% 7% 6%5%
More fuelefficient
More affordable Easier to park Easier toload/unload
cargo
More fun todrive
Morereliable/durable
Safer
MAIN ADVANTAGE OF A SMALL PICKUP TRUCK VS. A MID-SIZE TRUCK
ARE THERE ADVANTAGES
TO A SMALL TRUCK?
72%YES
Enter The Hyundai Santa Cruz to Fill that Need
Source: 2018 IHS Markit Note: Forecasted volume is based on CY20 to CY25 projections
EXPECTED TO HIT SHOWROOMS IN 2020
Santa Cruz Forecasted Volume*17K
• Pickup truck sales are potentially benefitting from the expanding economy and the rise in total
construction in the U.S. This may present an opportunity for OEMs and Dealers to plan for the upswing.
• Despite the new car market softening, it is good news for trucks to garner additional market share.
However, to some extent, it is at the expense of other segments or to a greater extent, from shoppers
looking to replace their trucks or adding to their household fleet. This is an opportunity to strengthen
CRM to retain the loyalists and message to entice shoppers who are new to the pickup market.
• To effectively message to mid-size and full-size shoppers, it is crucial to understand their differences in
psychographic mindsets, usages/activities, pricing expectations, feature needs and more. Targeted,
unique strategies for both types of pickup will reduce cannibalization.
Key Takeaways
4
8
• Shopper loyalty tend to differ significantly between mid-size and full-size pickups and that may be
influenced by the domestic partisan among full-size truck considerers. This may create an opportunity to
shape the mid-size truck landscape for domestic brands launching new trucks soon in an ever-growing
segment.
• There may be an emerging new segment in the pickup market - Small Trucks. Those who are shopping
for more affordability and fuel efficiency may see small trucks as the alternative to mid-size trucks or
SUVs. And the first one to launch in the segment will be the Hyundai Santa Cruz. This may be an
opportunity for OEMs to explore unmet needs and potentially develop a new segment or compete in the
small truck market.
Key Takeaways
THANK YOUM e d i a S t r a t e g i c I n s i g h t s
O E M S a l e s A n a l y t i c s C o n s u l t i n g
BRAND/MODEL SPECIFICS
Construction Investments are Growing and Projected to Expand Further, Which May Be an Opportunity for OEM to Sell More Pickup Trucks to Support New Housing Starts
Source: Statista, February 2018 Note: Housing Starts are based on Residential only
239.04
273.68286.78
308.91330.91
350.28369.29
2015 2016 2017* 2018* 2019* 2020* 2021*
TOTAL HOUSING STARTS (IN BILLIONS USD)
Tacoma Was The Only Truck Seen as a Leader by Shoppers;Shoppers Perceive Colorado and Ridgeline as Modern
Source: KBB.com Mid-Size Truck Survey, 2018Q12: For each truck, choose the single best description. (You can use the same description for multiple trucks.)
Note: For each truck, only respondents who were familiar answered this question.
Colorado Ranger (Old) Canyon Ridgeline Frontier Tacoma
Uncomfortable
Comfortable 1 1 2 2 1 3
Cheap 2 3
Expensive 1 1 2
Mediocre 2 3 3 2
Leader 1
Boring
Fun
Outdated
Modern 3 3
Rugged
Cute
TOP 3 WORDS SELECTED TO DESCRIBE EACH TRUCK
“Best Available” Auto Rates Jumped at the End of April
Source: Bankrate.com, US Federal Reserve, Bloomberg
0
1
2
3
4
5
6
7
8
9
%
INTEREST RATES
New Auto 60 Mo New Auto 48 Mo Used Auto 36 Mo US 10 Year Treasury Fed Discount Rate
TRUCK CONSIDERATION
Tacoma is The Top Truck Shoppers Are Considering Within The Next 12 Months
Source: KBB.com Mid-Size Truck Survey, 2018Q5: Which mid-size trucks are you considering within the next 12 months? (Select all that apply.) (N=764)
7.2%
19.0%
22.5%
23.2%
24.7%
37.7%
56.3%
Gladiator Pickup
Ridgeline
Frontier
Canyon
Ranger
Colorado
Tacoma
Silverado 1500 is a Top Truck Shoppers are Considering Within The Next 12 Months
Source: KBB.com Full-Size Truck Survey, 2018Q5: Which full-size trucks are you considering within the next 12 months? (Select all that apply.) (N=1369)
3%
6%
13%
15%
19%
20%
20%
22%
23%
31%
34%
Titan XD
Titan
Tundra
Sierra 2500/3500 HD
Ram 2500/3500/4450
Silverado 2500/3500 HD
Sierra 1500
Ram 1500
F-250/F-350/F-450 Super Duty
Silverado 1500
F-150
TRUCK CONSIDERATION
Steel May Be Perceived to Be More Durable; But Consideration for Aluminum is Respectable at Around 50%
Source: KBB.com Full-Size and Mid-Size Truck Survey, 2018Q26: Steel vs. aluminum truck bodies. Which do you think is more durable? (Full-Size N=1369, Midsize N=764)
Q27: Are you considering a truck with an aluminum body? (N=1369, Midsize N=764)
51%
48%
Full-size Truck Mid-size Truck
21%
79%
Mid-Size Truck
25%
75%
Full-Size Truck
MORE DURABLE – ALUMINUM OR STEEL?
Steel Aluminum
ALUMINUM BODY CONSIDERATION
MID-SIZE TRUCK FAMILIARITY AND OPTIONS
The Resurgence of the Ranger Back into the Market May Be Disruptive to the Segment with 19% Having Previously Owned it
Source: KBB.com Mid-Size Truck Survey, 2018Q10: Which best describes your experience with each of the following mid-size trucks? (N=764)
13%
13%
23%
21%
28%
37%
1%
2%
3%
6%
19%
10%
1%
2%
4%
3%
4%
10%
Canyon
Ridgeline
Colorado
Frontier
Ranger (OLD)
Tacoma
Have ridden in one Previously owned Currently own
Note: “Never heard of it” and “Have heard of it only” are not charted
MID-SIZE TRUCK EXPERIENCE
The Majority of Shoppers (75%) Have Experienced Silverado 1500
Source: KBB.com Full-Size Truck Survey, 2018Q10: Which best describes your experience with each of the following full-size trucks? (Select all that apply.) (N=1369)
12%
21%
35%
37%
40%
37%
40%
41%
42%
38%
42%
2%
4%
5%
11%
6%
11%
14%
13%
23%
23%
3%
3%
5%
6%
6%
7%
10%
14%
14%
Titan XD
Titan
Tundra
Sierra 2500/3500 HD
Sierra 1500
Ram 2500/3500/4450
Silverado 2500/3500 HD
Ram 1500
F-250/F-350/F-450 Super Duty
Silverado 1500
F-150
Have ridden in one Previously owned Currently own
Note: “Never heard of it” and “Have heard of it only” are not charted
FULL-SIZE TRUCK EXPERIENCE
TOP 3 DESCRIPTIONS AMONG CONSIDERERS
Source: KBB.com Mid-Size Truck Survey, 2018Q12: For each truck, choose the single best description. (You can use the same description for multiple trucks.)
Read as: Tacoma considerers described Tacoma as being a Leader, Comfortable and Rugged.
Tacoma Frontier Ridgeline Canyon
1. Leader
2. Comfortable
3. Rugged
1. Comfortable
2. Rugged
3. Leader
1. Modern
2. Comfortable
3. Expensive
1. Comfortable
2. Expensive
3. Modern
Comfortable is a Central Theme However Ridgeline and Canyon Stand
Out for Being Perceived as Modern and Expensive
Colorado Ranger Gladiator
1. Comfortable
2. Modern
3. Leader
1. Comfortable
2. Cheap
3. Leader
1. Rugged
2. Fun
3. Leader
The Upcoming Gladiator is Unique as it is Recognized for Fun
TOP 3 DESCRIPTIONS AMONG CONSIDERERS
Source: KBB.com Mid-Size Truck Survey, 2018Q12: For each truck, choose the single best description. (You can use the same description for multiple trucks.)
Read as: Ranger considerers described Ranger as being Comfortable, Cheap and a Leader.
F-150 Silverado 1500 Sierra 1500 Ram 1500
1. Comfortable
2. Leader
3. Rugged
1. Comfortable
2. Leader
3. Rugged
1. Comfortable
2. Expensive
3. Leader
1. Comfortable
2. Rugged
3. Leader
Full-Size Trucks Share Similar Imageries as Mid-Size Ones
TOP 3 DESCRIPTIONS AMONG CONSIDERERS
Source: KBB.com Full-Size Truck Survey, 2018Q12: For each truck, choose the single best description. (You can use the same description for multiple trucks.)
Read as: F-150 considerers described F-150 as being as Comfortable, Leader, and Rugged.
Tundra Titan
1. Comfortable
2. Leader
3. Expensive/
Rugged (Tied)
1. Comfortable
2. Modern
3. Expensive/
Rugged (Tied)
Japanese Trucks are Perceived Similarly with Titan
Being Seen as Modern
TOP 3 DESCRIPTIONS AMONG CONSIDERERS
Source: KBB.com Full-Size Truck Survey, 2018Q12: For each truck, choose the single best description. (You can use the same description for multiple trucks.)
Read as: Tundra considerers described Tundra as being Comfortable, a Leader, Expensive and Rugged.
In Terms of Owner Satisfaction, Tacoma Ranks at The Top
Source: KBB.com Mid-Size Truck Survey, 2018Q11: Overall, how satisfied are you with each of the trucks you own/owned based on the scale below? (Scale: 1 = Not at all
satisfied and 10 = Extremely satisfied)
34%
38%
43%
49%
57%
68%
Ranger OLD (N=176)
Colorado (N=50)
Canyon (N=21)
Frontier (N=69)
Ridgeline (N=28)
Tacoma (N=154)
Note: Data is directional. N values are low for some vehicles.
SATISFACTION WITH TRUCKS OWN/OWNED (TOP 2 BOX)
Silverado’s Owner Satisfaction is Lower Than Others – It Ranks in The Bottom Half
Source: KBB.com Full-Size Truck Survey, 2018Q11: Overall, how satisfied are you with each of the trucks you own/owned based on the scale below? (Scale: 1 = Not at all
satisfied and 10 = Extremely satisfied)
44%
44%
48%
49%
50%
52%
53%
54%
55%
62%
Ram 1500
F-150
Titan
Silverado 1500
Silverado 2500/3500 HD
Sierra 2500/3500 HD
F-250/F-350/F-450 Super Duty
Sierra 1500
Ram 2500/3500/4450
Tundra
SATISFACTION WITH TRUCKS OWN/OWNED (TOP 2 BOX)
STYLING EXERCISENOTE: ALL VEHICLES WERE DEBADGED
Shoppers Selected Tacoma, Colorado, And Canyon as Having The Best Debadged Styling
Source: KBB.com Mid-Size Truck Survey, 2018Q15: Please choose the 3 vehicles that have the BEST styling. (N=764)
65%
50% 50%
41% 39%
28% 27%
Tacoma Colorado Canyon Frontier Ranger Gladiator Pickup Ridgeline
TOP 3 TRUCKS WITH THE BEST DEBADGED STYLING
Note: All vehicles were debadged and shown to shoppers
The Most Recognizable Debadged Styling Went to Jeep Gladiator;Very Few Respondents Were Able to Identify The New Ranger as a Ford
Source: KBB.com Mid-Size Truck Survey, 2018Q18: You selected the truck below as having one of the BEST styling. Which automaker makes it?
96%
67% 65%57%
45%
34%
19%
Gladiator (N=216) Colorado (N=380) Tacoma (N=493) Frontier (N=317) Canyon (N=380) Ridgeline (N=206) Ranger (N=300)
% OF SHOPPERS WHO GUESSED THE CORRECT AUTOMAKER TO TRUCK
Shoppers Selected Sierra, Silverado, and F-150 As Having The Best Debadged Styling
Source: KBB.com Full-Size Truck Survey, 2018Q15: Please choose the 3 vehicles that have the BEST styling. (N=1369)
72%
61%56%
49%
37%
25%
Sierra 1500 Silverado 1500 F-150 Ram 1500 Tundra Titan
TOP 3 TRUCKS WITH THE BEST DEBADGED STYLING
Note: All vehicles were debadged and shown to shoppers
The Most Recognizable Debadged Styling Went to Ram 1500
Source: KBB.com Full-Size Truck Survey, 2018Q18: You selected the truck below as having one of the BEST styling. Which automaker makes it?
93%
77%69%
59% 58%
24%
Ram 1500(N=675)
F-150(N=761)
Silverado 1500(N=835)
Sierra 1500(N=983)
Tundra(N=513)
Titan(N=340)
% OF SHOPPERS WHO GUESSED THE CORRECT AUTOMAKER TO TRUCK
24%
14% 14%
5%
65%
Toyota Safety Sense Subaru EyeSight Honda Sensing Mazda i-Activsense NA, I have never heard of anyof these
% OF SHOPPERS WHO HAVE HEARD ABOUT SAFETY TECHNOLOGIES
There is an Opportunity to Boost Awareness of these Active Safety Systems. About a Third of Shoppers Have Heard of at Least One of the Active Safety Technologies
Source: KBB.com Mid-Size Truck Survey, 2018 Q33: Which of the following active safety technologies have you heard of? (N=764)Q34: With each active safety technology below, have you personally had an experience where the technology prevented an accident?
*Read as: Among those who heard of Toyota Safety Sense (24%), 22% have had an experience with Toyota Safety Sense in which it prevented an accident
22%* 18% 25% 20%
HAD AN EXPERIENCE WHERE THE TECHNOLOGY PREVENTED AN ACCIDENT
Source: KBB.com Mid-Size Truck Survey, 2018 Q29: In your opinion, which mid-size truck has improved the most in the last 5 years? (N=764)
Q30: Please explain your answer.
29.1% 28.8%
12.6%11.1%
8.2%6.3%
Chevrolet Colorado Toyota Tacoma Honda Ridgeline Ford Ranger GMC Canyon Nissan Frontier
MOST IMPROVED TRUCK IN THE PAST 5 YEARS
Overall, Shoppers Feel Colorado Has Improved The Most in The
Past 5 Years