HawaiiDealer by Traveler Media

The Official Publication of the Hawaii Automobile Dealers Association

2018 Fourth Quarter Edition

Brad Nicolai named the 2019 Hawaii State Dealer of the Year See story on pages 8, 9 & 10

In recent news, his Velocity Showroom just won the 2018 U.S. Design & Development Award for Retail Store Design

T H E H Y D R O G E N - P O W E R E D T O Y O TA

Powered by hydrogen and defined by an aerodynamic design and 312 1 mile driving range, the Mirai Is everything you want in a sedan. It’s designed to bring convenience to every drive with standard innovative features and advanced safety technologies such as an EntuneTM 3.0 multimedia system and Blind Spot Monitor 2. Plus, with additional benefits including Toyota Hawaii Care for up to 3 years with no cost service and roadside assistance 3 and up to 3 years’ worth of complimentary fuel 4 , Mirai makes it even easier to embrace the future. THE FUTURE OF MOBILIT Y. AVAIL ABLE NOW. VISIT TOYOTAMIRAI.COM

1- Actual mileage may vary. 2- Do not rely exclusively on the Blind Spot Monitor. Always look over your shoulder and use your turn signal. There are limitations to the function, detection and range of the monitor. See Owner’s Manual for additional limitations and details. 3- Mirai FC includes three (3) years (from the first date of lease from Servco Toyota Honolulu) of complimentary roadside assistance, valid only on Oahu. 4- Complimentary fuel for three years (from the first date of lease from Servco Toyota Honolulu). The Mirai is a hydrogen-powered fuel cell electric vehicle that must be fueled at hydrogen stations conforming to the latest Society of Automotive Engineers (SAE) hydrogen fueling interface protocol standards or laws that may supersede such SAE standards. The only fueling station in Hawaii that conforms to the SAE fueling protocols is located at Servco Toyota Honolulu.

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Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 Honolulu, HI 96813 (808)593-0031 • Fax (808)593-0569

2019-2020 HADA Officers & Directors President John Uekawa President-Elect Kenny Ching Vice President Eric Fukunaga Secretary Wayne De Luz Treasurer Bill van den Hurk NADA Director Stan Masamitsu Hawaii Director Joe Hanley Maui Director Jim Falk Kauai Director Mike Niethammer Oahu Director Stan Masamitsu Oahu Director Michael Stoebner Oahu Director

President’s Comments Our country’s franchised new car system continues to flourish because local dealers’ abilities to understand customers’ needs, provide the inventory to meet those needs, and service vehicles in a way that makes vehicle ownership trouble-free. It’s an honor and a privilege to serve as HADA’s president for 2019 and 2020. I hope to continue the work Brian Kitagawa and our other presidents have set in motion. We know that the next two years will be filled with the introduction of exciting new technology in the automotive industry. We know too that there likely will be an expansion of the newly introduced shared personal vehicle options—a new concept that dealers across the country are embracing to maximize use of their inventory. It’s a great time to be a dealer or an employee in a new car dealership. At HADA we’re making a strong effort to stay out in front with regard to automotive technology by hosting a new-technology-focused First Hawaiian International Auto Show, March 29-31, 2019, and, then later in the year, hosting leaders in the domestic and international auto industry at our 60th HADA convention—October 10-13, 2019, on Maui, to learn about advances in Hawaii with regard to electric / hydrogen vehicle uptake and autonomous vehicle research and development projects. Hawaii’s governments are already getting involved in showcasing new automotive technology. We’ve learned that Honolulu’s mayor will be hosting The Conference of Mayors, in mid-year 2019, with plans for a demonstration of vehicle guidance technology.

Heather Cutter

And, as reported at the HADA convention this year, our association is participating

Oahu Director

in the State of Hawaii grant request for $10 million from the federal government

Brad Nicolai At-Large Director Marc Cutter At-Large Director

to make Nimitz Highway, Hwy. 92, a test bed for driver-assisted, connected autonomous vehicles. Just about everyone is getting involved. It’s an exciting time to be in the auto industry.

Keoni Hansen Immediate Past President Brian Kitagawa

John Uekawa HADA president 2019-2020

HADA STAFF Executive Director Dave Rolf

HawaiiDealer is designed & published by Custom Publishing Design Group, Inc.® 800.246.1637 • www.MyCompanyMagazine.com. To advertise in an upcoming issue contact Sara Russell, 800.246.1637 ext. 315 or e-mail sara@mycompanymagazine.com.

HawaiiDealer is published quarterly by the Hawaii Automobile Dealers Association, 1100 Alakea Street, Suite 2601, Honolulu, HI 96813 Phone: 808 593-0031 Fax: 808 593-0569 Email: drolf@hawaiidealer.com

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Brad Nicolai is Hawaii’s 2019 State Dealer of the Year Brad Nicolai, has been nominated by the dealer members of HADA to be Hawaii’s 2019 Hawaii State Dealer of the Year, which includes nomination for what many consider the national dealer of the year competition next year, hosted by TIME magazine. The nomination of Brad, as president of Velocity Honolulu, an Alfa Romeo, Audi, Bentley, Ferrari, Land Rover, Lamborghini, Lotus, Maserati dealership in Honolulu, for the 2019 TIME Dealer of the Year award was announced in a TIME magazine news release which

explained that Brad is one a select group of dealers from across the country who will be honored at the 102nd annual National Automobile Dealers Association (NADA) Show in San Francisco on January 25, 2019. Having recently finished what has been termed the seamless integration of ultra-luxury hospitality in residential condominium and retail, Brad’s 200,000 square foot dealership on the corner of Kapiolani and Ward in Honolulu, was awarded the 2018 U.S. Design and Development Gold Award for Retail Store

The Velocity dealership features what Brad terms its lighted “Jewel Box.” The high-vehicle-traffic, corner-located showroom at Ward and Kapiolani is frequently color-theme lighted to mark the dealership’s support of various charitable causes, including cancer awareness, heart disease research, armed forces appreciation, and more. “When you see it all lit up, it just seems to sing,” said K. Sean Kikina, Guest Experience Manager, who is the concierge manager Brad hired three years ago to create a concierge team of 7.

Design—considered on of the nation’s top awards in building design. The International Council of Shopping Centers award recognized the innovative design and cutting-edge style in the Velocity Showroom, which Brad says “focuses just as much on the art of living a luxurious lifestyle as it does on top-tier automobiles.” The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. Recipients are among the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Brad, 43, was chosen to represent the Hawaii Automobile Dealers Association in the national competition – one of only 51 auto dealers nominated for the 50th annual award from more than 16,000 nationwide. “From our humble beginnings on a dirt lot, we still maintain the same entrepreneurial and creative approach to business, taking us to the forefront of sustainable design and experiential retail,” nominee Brad said of the company his father, Joe, founded selling preowned cars in 1961.

Brad takes a moment to relax in his office following seven years—from idea to completion—of the Velocity dealership complex and accompanying 40-story Symphony Park residential units.

Brad is a 1993 graduate of the Punahou School in Honolulu. He earned a B.S. in marketing from Boston College in Chestnut Hill, Massachusetts, in 1997, and an M.B.A. from the University of Hawaii at Manoa in Honolulu in 2007. While an undergraduate, he studied abroad in Florence, Italy, at Lorenzo de Medici – The Italian International Institute. After Boston College, Brad spent time working at Penfold Motors, a dealership group in Melbourne, Australia, before joining his father’s company, JN Group, which owns car and motorcycle stores in Honolulu, in 1998. “I originally worked for the local Kawasaki dealer renting jet skis off Waikiki beach at the age of 14,” he said. “I also did maintenance at the dealership and washed cars on the

The International Council of Shopping Centers 2018 top award for U.S. Best in Retail Design was presented to Brad for his Velocity Showroom.

lot. I was interested in trying out new things and asked to move to different departments: rentals, fleet, parts, service and sales while in high school and college.”

company during the summers while also working at the dealership,” he said. “This sparked my interest in creating an amenity-rich mixed-use development.”

Today, Brad oversees Velocity Honolulu, a new-concept luxury shopping complex, which is home to his showrooms featuring high-end cars and motorcycles. “Our experiential approach to retail includes a restaurant, cafe, salon, barber shop and boutiques as part of the dealership guest experience,” he said. His group also owns a Chevrolet store and two other cycle shops, all in Honolulu.

For more than 55 years, JN Group has been an integral part of the Honolulu community and has consistently supported causes that better people’s lives. The group’s Drive for the Cure event, which donated $100 for every new vehicle or motorcycle that was sold or leased throughout the month of October, raised money for women’s breast health services at Kapiolani Medical Center for Women & Children.

Velocity Honolulu also features the first LEED (Leadership in Energy and Environment Design)-certified residential complex in the city, Symphony Honolulu. “My desire to do things differently and to learn from others outside our industry inspired me to intern for a real estate

JN Group is also a strong supporter of the United States Armed Forces, donating to several programs that provide services to soldiers, including the United States Army Family and Morale, Welfare and Recreation (U.S. Army

Brad is shown here with the Formula One racer that is exhibited on the 3rd floor of his dealership—which has a glass floor that is stressed to hold the weight of displayed vehicles.

MWR) in Hawaii; the Honolulu Navy League; and the Association of the United States Army. His company has received numerous awards and recognition for their contribution to helping military families. “Our local and military communities know they can turn and count on us for help, no matter what,” Brad said. Through his family’s Castiglione a Casauria Foundation, which was named after the small Italian town where his grandparents lived, plus other dealership initiatives, Brad gives back to charities big and small. Their stores are collection centers for Toys for Tots and they host blood drives regularly at the dealership. Other groups Brad supports include the Kristi Yamaguchi’s Always Dream Foundation (advancing early childhood literacy); American Red Cross of Hawaii; Big Brothers Big Sisters Hawaii; Doctors Without Borders; Friends of Kewalos (protects and preserves Kewalos Basin Park); Hawaii Children’s Cancer Foundation; Hawaii Foodbank; Hawaiian Humane Society; Lanakila Meals on Wheels; Moanalua Gardens Foundation (preserves the native culture and environment of Hawaii); REHAB Foundation (supports the Rehabilitation Hospital of the Pacific to help people with physical and cognitive disabilities); Teach for America and YMCA of Honolulu, to name a few.

This year, Brad accompanied HADA’s NADA director Stan Masamitsu (L) and Dave Rolf (not shown) on a trip to Washington D.C. to visit with members of Hawaii’s congressional delegation at their offices on the Hill, to discuss the self-driving vehicle legislation and the need to preserve a state’s right to license and regulate vehicle commerce (H.R. 3388 / S. 1885).

“Being able to provide resources and support on the ground level to improve the lives of others provides gratification to everyone in our organization,” Brad said. Dealers are nominated by state and metro dealer associations around the country. The award is sponsored by TIME in association with Ally Financial, and in cooperation with NADA. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive an additional $5,000 for their favorite charities and the winner will receive an additional $10,000 to give to charity.

In its eighth year as exclusive sponsor, Ally will recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees will also be recognized on AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “It’s an incredible honor to recognize these dealers for their business accomplishments and their unwavering commitment to ‘Do It Right’ by helping others in their communities,” Timmerman said. “They are extraordinary auto leaders who care and go the extra mile to give of themselves to make their communities stronger. Ally is proud to support and celebrate their achievements.” Brad and his wife, Gina, have three children. 11

2019 Hawaii State Teacher of the Year Receives Use of a New Nissan Leaf Compliments of the Nissan Dealers of Hawaii Mathieu Williams was named the 2019 Hawaii State Teacher of the Year during Department of Education ceremonies held October 26th at Washington Place in Honolulu. The Department of Education reported that under his guidance the Kealakehe Intermediate students earned top prizes at the 15th Annual Student Television Network’s National Convention in Nashville, and trained with digital media professionals at PBS Hawaii where they hosted the HIKI NO education program. Williams received use of a new Nissan Leaf for a year, compliments of the Nissan Dealers of Hawaii. The Nissan Leaf is the most popular electric vehicle in the world. A customer purchases one every 12 minutes. Back in 2011, Nissan North America, Inc. made Hawaii its seventh American rollout market. The Nissan Leaf is Hawaii’s most popular electric vehicle. The Teacher of the Year award is part of a prestigious national program that honors teaching excellence in the United States. Each year the Hawaii State Teacher of the Year is chosen from one of the seven Hawaii Department of Education districts and public charter school winners following a rigorous selection process that, according to the DOE, “includes the teacher’s ability to inspire students 12

Mathieu Williams, the technology and digital media teacher at Kealakehe Intermediate School on the island of Hawaii was presented the ceremonial key to a new Nissan Leaf to drive for a year as the newly named 2019 Hawaii State Teacher of the Year. John Uekawa, president of New City Nissan, presented the key on behalf of the Nissan Dealers of Hawaii, who donated the vehicle this year. Also shown are (L-R) Tom Miyazaki, Senior Fixed Operations Manager for Nissan North America, Oz Wroe, Senior Financial Services Manager with Nissan North America, Hawaii Governor David Ige, Hawaii’s First Lady, Dawn Amano-Ige, and Hawaii State Superintendent of Schools Christina Kishimoto.

to learn; to have the earned respect among students, parents and peers; to be active in the community as well as school; and to be able to perform the task of representing the teaching profession nationally and internationally.” In December 2018, a national selection committee will convene in Washington D.C. to determine the four finalists. In April 2019, the President of the United States will introduce the National Teacher of the Year and all the State Teachers of the Year to the nation.

Mathieu Williams, 2019 Hawaii State Teacher of the Year.

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Hawaii’s Dealer Day at the Capitol will be held 11:30 to 1:30 Thurs. Proprietary February 7, 2019

Hawaii Knowledge

PROBLEM

Hawaii’s legislative session runs from Active Real-Time Integrated Traffic Corridor January 16 through May 2, 2019. Some 3,000 bills will be introduced. This year’s session will likely have a focus on tax, energy and climate change HADA dealers have always Traffic Delays on Nimitz Hwylegislation. 92 offered helpful, practical solutions to the HNL Intl. Airport to Downtown issues of our time. HADA will need every to Waikiki dealer’s help this year on Dealer Day. This informal time, spent with legislators, is a chance to share some information about the auto industry over a tasty Kakaako Kitchen plate lunch.

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With HADA and the UH Active Real-Time Tra Engineering Department being two of the three founding ■ USDOT organizations in theFederal Hawaii Highwa Autonomous Vehicle Institute Transportation & Conge (HAVI), and and supporting the Deployment (ATCMTD) request for $10 million in federal ■ Infrastructure to provide funds in (ICM) a proposal submitted to one of Honolulu to the USDOT Federal Highway ■ $23.4M four-year joint e Admin (FHWA) Advanced management Transportation & Congestion ■ $10M requested Management Technologies ■ $13.4M Deployment program, the in HDOT association and its members are leading in the efforts to build the REQUE Please contact the following U.S. De Future of Transportation in Hawaii.

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Coming 2019 First Hawaiian International Auto Show (at the Hawaii Convention Center)

March 29-31, 2019 VIP Preview Night, Thurs. March 28, 2019 The auto show this year will feature a strong focus on new automotive technology. Steve Freeman, SVP Motor Trend Auto Shows, Inc.,says that the 4-acre showroom floor at the Honolulu Convention Center will again be filled with exhibits from auto manufacturers, dealers, and dealer ad groups. Foresight Research’s study of the Hawaii market revealed that the Hawaii auto show has influence on car buyers that ranks with that of the Global Shows— LA, NY, CHI and Detroit. The Ride ‘ Drives (test drives) will again offer show-goers the opportunity to test drive the

new automotive technology. A Hawaiian Electric Company sponsorship, offering test drives of electric vehicles, has been proposed and is in the discussion stages. Some 400 HADA members and guest, and some elected officials, are expected at VIP Preview Night. Invitations will go out in February.

2019 HADA Convention (60th) Will Be Held at the Fairmont Kea Lani Maui, Oct. 10-13, 2019 The all-suites Fairmont Kea Lani Maui will be the location for the 60th annual HADA convention. Top speakers from the auto industry along with leaders in the auto industry—domestic and international— will be invited to come to Hawaii to learn how the Aloha State is addressing the adoption of the exciting new automotive technology. Spotlight sponsors will help make this a special event. Hotel registration information will be online early next year, and convention registration materials and program will be sent out in June. The coming year’s convention will also feature helpful 45-minute seminars (3) on Thursday afternoon. In 2019, leaders from across the U.S. will be coming to Hawaii to view auto-related new technology. We’ve learned that Honolulu mayor Kirk Caldwell, is hosing the annual Conference of (U.S.) Mayors which possibly may be featuring demonstrations of autonomous vehicle driving, and Governor David Ige has announced Hawaii is open for testing autonomous vehicle technology, enlisting HADA’s help along with the UH College of Engineering, in developing an autonomous shuttle to operate at the Daniel K. Inouye International Airport. The governor will be hosting the Democratic Governor’s Conference in Hawaii and likely referencing the anticipated launch of this new technology. Finally, HADA will be hosting leaders in the automotive industry in October at our 60th HADA convention. It certainly will be a year for Hawaii to display automotive technology to the some of the nation’s elected officials and to world leaders in the automotive industry.

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CONVENTION The 59th HADA convention was held at the Grand Hyatt Resort and Spa on Kauai this year. It was attended by 250 members and guests. Much thanks goes to convention chair Bill van den Hurk, golf tournament chairs, Byron Hansen and Pete Luke, and to Bob Gardiner for hosting the tennis tournament. Much thanks too goes to speakers Jonathan Collegio, SVP of Public Affairs at NADA, and to MotorTrend Auto Showâ&#x20AC;&#x2122;s SVP Steve Freeman, along with Ad Strategies president Curt Van Loon. A special thanks goes to all the convention sponsors and HawaiiDealer magazine sponsors. Pete Luke and Byron Hansen as Sherlock and Watson.

NADAâ&#x20AC;&#x2122;s Jonathan Collegio officiated at the board swearing in ceremony. Board members, shown left to right, are: Eric Fukunaga, Mike Niethammer, Wayne De Luz, Keoni Hansen, Bill van den Hurk, Brian Kitagawa, Kenny Ching, Stan Masamitsu, Michael Stoebner, Brad Nicolai, Kenny Ching, Joe Hanley and Jim Falk. Officers and Directors titles are listed on page 4. Much thanks goes to out-going Hawaii Island director Jackie De Luz Watanabe (not shown) for her two years of service on the board.

Classroom seating for the General Meeting of the Association on Friday morning, accompanied by a breakfast, created a great setting for the speeches and screen presentations.

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Serving with Aloha in Hawaii since 1994.

Date: 9.8.17 Job# 17-CPB-0631 Run date: 3rd Qtr. 2017 Mtls: PDF-X/1a

CoveringData Datathru thru September 2018 Covering September 2018

Hawaii Auto Outlook Outlook Hawaii Auto

Volume 17,17, Number Volume Number44

™

Sponsored by: Dealers Association Sponsored by: Hawaii Hawaii Automobile Dealers Association FORECAST FORECAST

State New Registrations Remain at Healthy Levels Levels State NewVehicle Vehicle Registrations Remain at Healthy Key factors providing a boost to new vehicle sales

Motivation to upgrade. The average age of vehicles on the road exceeds 10 years old. Today’s new cars and trucks are far superior to the average 10 year old vehicle. Advanced safety technologies, which were once expensive options exclusive to luxury brands, are now standard features on many mass-market vehicles. In addition, an everexpanding array of new products fulfilling every conceivable market niche and powertrain type will continue to entice consumers into the new vehicle market. Economic growth is positive; labor market is strong. GDP growth has shifted into a higher gear during 2018 and most economists expect growth to remain positive over the next year. Correspondingly, the unemployment rate has moved lower, employment gains have been steady, and incomes are increasing. Consumer confidence is robust. Most measures of consumer attitudes have reached 18 year highs over the past few months. There are some risks, but strong economic growth combined with upbeat consumers should be enough to keep new vehicle sales strong.

Key factors holding back new vehicle sales

Used and new vehicle price gap is widening. For most of this decade, tight supplies of late model used vehicles gave a boost to preowned car and truck prices. This helped keep the difference between new and used vehicle prices relatively small. But that dynamic is now changing. Several years of strong new vehicle sales and higher offlease volumes are feeding used vehicle supplies, which will eventually lead to softening prices. This has contributed to a widening in the gap between the cost of new and used. As a result, an increasing number of automotive consumers will likely view the purchase of a used vehicle as an appealing proposition, which will syphon sales away from the new vehicle market. Rising interest rates. After several years of hovering near zero, interest rates are on the rise. It’s not going to be an abrupt, upward march, but borrowing costs are almost certain to increase over the next 12 to 18 months. Higher interest rates lead to increased monthly finance and lease payments, which put a drag on new vehicle sales.

Annual Trend in State Market

Market Summary

New light vehicle registrations

70,000 60,000 50,000

54039 48705

40,000 30,000

57094 58485 59137 57100

42463 32649

35576

20,000 10,000 0

TOTAL

YTD '17 YTD '18 % Chg. thru Sept. thru Sept. '17 to '18 45,699 43,210 -5.4%

Mkt. Share YTD '18

Car Light Truck

16,614 29,085

14,033 29,177

-15.5% 0.3%

32.5% 67.5%

Domestic European Japanese Korean

9,756 4,453 28,578 2,912

9,392 4,198 26,837 2,783

-3.7% -5.7% -6.1% -4.4%

21.7% 9.7% 62.1% 6.4%

2010 2011 2012 2013 2014 2015 2016 2017 2018 Forecast Historical Data Source: IHS Markit.

Source: IHS Markit.

The graph above shows annual new retail light vehicle registrations in the state from 2010 thru 2017 and Auto Outlook’s projection for all of 2018.

Domestics consist of vehicles sold by GM, Ford, FCA (excluding FIAT and Alfa), and Tesla. Historical figures were revised by IHS Markit and will differ slightly from those shown in previous releases.

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Page 2 Hawaii Auto Outlook Hawaii Auto Outlook Hawaii Auto Outlook

COUNTY SCOREBOARD COUNTY SCOREBOARD COUNTY SCOREBOARD COUNTY

Oahu Vehicle Registrations Decline 6.5% 6.5% So FarSo This Year Oahu New Vehicle Registrations Decline Far This OahuNew New Vehicle Registrations Decline 6.5% So Far ThisYear Year Oahu New Vehicle Registrations Decline 6.5% So Far This Year TheThetable thetheright tableon rightprovides providesaa a The table ononthe right provides summary of of each of of Hawaii’s four summary each Hawaii’s four summary of each of Hawaii’s four retail light vehicle markets. TheThe retail light vehicle markets. retail light vehicle markets. The table is is divided intointo four sections. table divided four sections. table is divided into four sections. Market Summary shows total new Market Summary shows total new Market Summary shows total new retail light vehicle registrations durretail light vehicle registrations durretail light vehicle registrations duringing thethe firstfirst nine months of of 2017 nine months 2017 ing the first nine months of 2017 andand 2018 andand thethe percent change. 2018 percent change. and 2018 and the percent change. TheThe second andand third sections show second third sections show The second and third sections show Light Truck andandDomestic Brand Light Truck Domestic Brand Light Truck and Domestic Brand market marketshare. share.The Thefourth fourthsection section market share. The fourth section shows market share figures forfor thethe shows market share figures shows market share figures for the toptop 1010 selling light vehicle brands selling light vehicle brands top 10 selling light vehicle brands in in thethe state. TheThe toptop rated county in in state. rated county in the state. The top rated county in each category is shaded. each category is shaded. each category is shaded. Kauai Kauaihad hadthe thelargest largestpercentage percentage Kauai had the largest percentage increase, upup 2.8%. Domestic Brand increase, 2.8%. Domestic Brand increase, up 2.8%. Domestic Brand market share was highest in in Kauai market share was highest Kauai market share was highest in Kauai (27.2%) andand lowest in Oahu (21%). (27.2%) lowest in Oahu (21%). (27.2%) and lowest in Oahu (21%).

NewNew Vehicle Markets Summary Vehicle Markets Summary New Vehicle Markets Summary Hawaii Kauai Hawaii Kauai Hawaii Kauai

Market Summary Market Summary Market Summary YTDYTD '17'17 thruthru Sept. 5392 2133 Sept. 5392 2133 YTD '17 thru Sept. 5392 2133 YTDYTD '18'18 thruthru Sept. 5418 2193 Sept. 5418 2193 YTD '18 thru Sept. 5418 2193 Percent change 0.5% 2.8% Percent change 0.5% 2.8% Percent change 0.5% 2.8% Light Truck Market Share Light Truck Market Share Light Truck Market Share YTDYTD '17 thruthru Sept. 69.6% 72.1% Sept. 69.6% 72.1% YTD '17'17thru Sept. 69.6% 72.1% YTDYTD '18'18 thruthru Sept. 73.4% 78.9% Sept. 73.4% 78.9% YTD '18 thru Sept. 73.4% 78.9% Change (share points) 3.83.8 6.86.8 Change (share points) Change (share points) 3.8 6.8 Domestic Brand Market Share Domestic Brand Market Share Domestic Brand Market Share YTDYTD '17 thruthru Sept. 19.4% 25.8% Sept. 19.4% 25.8% YTD '17'17thru Sept. 19.4% 25.8% YTDYTD '18'18 thruthru Sept. 21.9% 27.2% Sept. 21.9% 27.2% YTD '18 thru Sept. 21.9% 27.2% Change (share points) 2.52.5 1.31.3 Change (share points) Change (share points) 2.5 1.3 Market Share for for TopTop 10 10 Selling Brands in State - YTD '18'18 thruthru Sept. Market Share Selling Brands in State YTD Sept. Market Share for Top 10 Selling Brands in State - YTD '18 thru Sept. Toyota 32.2% 34.9% Toyota 32.2% 34.9% Toyota 32.2% 34.9% Honda 14.7% 12.1% Honda 14.7% 12.1% Honda 14.7% 12.1% Nissan 10.1% 9.2% Nissan 10.1% 9.2% Nissan 10.1% 9.2% FordFord 6.8% 11.3% 6.8% 11.3% Ford 6.8% 11.3% Chevrolet 6.8% 7.3% Chevrolet 6.8% 7.3% Chevrolet 6.8% 7.3% Subaru 6.5% 5.0% Subaru 6.5% 5.0% Subaru 6.5% 5.0% KiaKia 6.4% 5.7% 6.4% 5.7% Kia 6.4% 5.7% Hyundai 2.9% 2.1% Hyundai 2.9% 2.1% Hyundai 2.9% 2.1% Lexus 0.4% 0.9% Lexus 0.4% 0.9% Lexus 0.4% 0.9% Jeep 2.5% 3.6% Jeep 2.5% 3.6% Jeep 2.5% 3.6%

MARKET TRACKER: STATE MARKET VERSUS U.S. MARKET TRACKER: STATE MARKET VERSUS U.S. MARKET TRACKER: STATE MARKET VERSUS U.S. MARKET TRACKER: STATE MARKET VERSUS U.S.

State Car Market Share Falls to 32.5% State StateCar CarMarket MarketShare ShareFalls Fallsto to32.5% 32.5% State Car Market Share Falls to 32.5% Percent change in registrations Percent change registrations Percent change ininregistrations YTDYTD '18'18 thru Sept. vs.vs. YTDYTD '17'17 thru Sept. YTD '18 thru Sept. vs. YTD '17 Passenger carcar market share Passenger market share Passenger car market share YTDYTD '18'18 thru Sept. thru Sept. YTD '18 thru Sept.

State Market State Market State Market

U.S. Market U.S. Market U.S. Market

-5.4% -5.4% -5.4%

-0.7% -0.7% -0.7%

32.5% 32.5% 32.5%

31.6% 31.6% 31.6%

Domestic brand market share Domestic brand market share Domestic brand market share 21.7% 21.7% 21.7% YTDYTD '18'18 thru Sept. thruSept. Sept. YTD '18 thru TopTop 10 brands andand market share brands market share Top 1010brands and market share YTDYTD '18'18 thru Sept. thru Sept. YTD '18 thru Sept. First Toyota 26.9% First Toyota 26.9% First Toyota 26.9% Second Honda 15.0% Second Honda 15.0% Second Honda 15.0% Third Nissan 9.4% Third Nissan 9.4% Third Nissan 9.4% Fourth Ford 6.5% Fourth Ford 6.5% Fourth Ford 6.5% Fifth Chevrolet 6.3% Fifth Chevrolet 6.3% Fifth Chevrolet 6.3% Sixth Kia 3.7% Sixth 3.7% Sixth KiaKia 3.7% Seventh Subaru 3.7% Seventh Subaru 3.7% Seventh Subaru 3.7% Eighth Hyundai 2.7% Eighth Hyundai 2.7% Eighth Hyundai 2.7% Ninth Lexus 2.7% Ninth Lexus 2.7% Ninth Lexus 2.7% Tenth Jeep 2.5% Tenth Jeep 2.5% Tenth Jeep 2.5% Source: IHSIHS Markit Source: Markit Source: IHS Markit

41.6% 41.6% 41.6%

Toyota Toyota Toyota Ford Ford Ford Chevrolet Chevrolet Chevrolet Honda Honda Honda Nissan Nissan Nissan Jeep Jeep Jeep Subaru Subaru Subaru Hyundai Hyundai Hyundai KiaKia Kia GMC GMC GMC

13.6% 13.6% 13.6% 11.7% 11.7% 11.7% 10.9% 10.9% 10.9% 10.2% 10.2% 10.2% 6.5% 6.5% 6.5% 6.2% 6.2% 6.2% 4.4% 4.4% 4.4% 3.7% 3.7% 3.7% 3.5% 3.5% 3.5% 3.2% 3.2% 3.2%

Maui Maui Maui

Oahu Oahu Oahu

5473 5473 5473 5011 5011 5011 -8.4% -8.4% -8.4%

32701 32701 32701 30588 30588 30588 -6.5% -6.5% -6.5%

68.8% 68.8% 68.8% 74.0% 74.0% 74.0% 5.25.2 5.2

61.3% 61.3% 61.3% 64.6% 64.6% 64.6% 3.33.3 3.3

24.9% 24.9% 24.9% 23.8% 23.8% 23.8% -1.2-1.2 -1.2

20.8% 20.8% 20.8% 21.0% 21.0% 21.0% 0.20.2 0.2

25.7% 25.7% 25.7% 18.7% 18.7% 18.7% 8.9% 8.9% 8.9% 8.2% 8.2% 8.2% 5.6% 5.6% 5.6% 5.2% 5.2% 5.2% 3.6% 3.6% 3.6% 1.4% 1.4% 1.4% 2.2% 2.2% 2.2% 2.0% 2.0% 2.0%

25.6% 25.6% 25.6% 14.6% 14.6% 14.6% 9.3% 9.3% 9.3% 5.8% 5.8% 5.8% 6.2% 6.2% 6.2% 2.8% 2.8% 2.8% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.3% 3.3% 3.3% 2.6% 2.6% 2.6%

Hawaii Hawaii Hawaii Auto AutoOutlook Outlook Auto Outlook Covering Coveringdata datathru thruSeptember September2018 2018 Covering data thru September 2018 Published for:for: Published Published for: Hawaii Automobile Dealers Association Hawaii Automobile Dealers Association Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 1100 Alakea Street, Suite 2601 1100 Alakea Street, Suite 2601 Honolulu, HI HI96813 Honolulu, 96813 Honolulu, HI 96813 Phone: 808-593-0031 Phone: 808-593-0031 Phone: 808-593-0031 Published by:by: Published Published by: Auto Outlook, Inc.Inc. Auto Outlook, Auto Outlook, Inc. POPO BoxBox 390 390 PO Box 390 Exton, PA PA19341 Exton, 19341 Exton, PA 19341 Phone: 610-640-1233 Phone: 610-640-1233 Phone: 610-640-1233 EMail: jfoltz@autooutlook.com EMail: jfoltz@autooutlook.com EMail: jfoltz@autooutlook.com Editor: Jeffrey A. Foltz Editor: Jeffrey Foltz Editor: Jeffrey A.A.Foltz

Reproduction, including photocopying of this publication in whole or in Reproduction, including photocopying this publication whole Reproduction, including photocopying of ofthis publication in inwhole or orin in part, is prohibited without thethe express permission of Auto Outlook, Inc.Inc. part, prohibited without express permission Auto Outlook, part, is isprohibited without the express permission of ofAuto Outlook, Inc. AnyAny material quoted must be be attributed to Hawaii Auto Outlook, pubmaterial quoted must attributed to Hawaii Auto Outlook, pubAny material quoted must be attributed to Hawaii Auto Outlook, published by Auto Outlook, Inc.Inc. on behalf of the Hawaii Automobile Dealers lished Auto Outlook, behalf Hawaii Automobile Dealers lished byby Auto Outlook, Inc. ononbehalf of ofthetheHawaii Automobile Dealers Association, andand must alsoalso include thethe statement: “Data Source: IHSIHS Association, must include statement: “Data Source: Association, and must also include the statement: “Data Source: IHS Markit. ” Unforeseen events maymay affect thethe forecast projections. ConMarkit. ” Unforeseen events affect forecast projections. ConMarkit.” Unforeseen events may affect the forecast projections. Consequently, Auto Outlook is not responsible for for management decisions sequently, Auto Outlook responsible management decisions sequently, Auto Outlook is isnotnotresponsible for management decisions based on on the content of Hawaii Auto Outlook. based content Hawaii Auto Outlook. based on thethecontent of ofHawaii Auto Outlook. Copyright Auto Outlook, Inc.,Inc., November 2018 Copyright Auto Outlook, November 2018 Copyright Auto Outlook, Inc., November 2018

Hawaii Auto Outlook Covering Data thru September 2018 Covering Data thru September 2018

Page 3 Page Page 3 3

MARKET TRACKER - SEGMENTS MARKET MARKETTRACKER TRACKER- -SEGMENTS SEGMENTS

Compact SUVs Now Account for16.7% 16.7% StateMarket Market Compact SUVs Now Account for for 16.7% of State Market Compact SUVs Now Account ofofState Hawaii Segment Market Share Review Hawaii Segment Market Share Review Market Share Market Share YTD ‘17 thru September YTD ‘17 thru September 14.9 14.9

Market Share Market Share YTD ‘18 thru September YTD ‘18 thru September 16.7 16.7

Change in share Change in share YTD ‘17 to ‘18 YTD ‘17 to ‘18 1.8 1.8

Best selling model Best selling model in segment in segment Honda CR-V Honda CR-V

Compact/Mid-Size Pickup Compact/Mid-Size Pickup Compact Car Compact Car

12.8 12.8 15.9 15.9

13.6 13.6 13.4 13.4

0.80.8 -2.5-2.5

Toyota Tacoma Toyota Tacoma Honda Civic Honda Civic

MidMid SizeSize SUVSUV Pickup FullFull SizeSize Pickup

10.5 10.5 7.17.1

10.9 10.9 7.07.0

0.40.4 -0.1-0.1

Toyota 4 Runner Toyota 4 Runner F Series FordFord F Series

MidMid SizeSize CarCar Subcompact Subcompact CarCar

6.86.8 5.85.8

6.46.4 5.25.2

-0.4-0.4 -0.6-0.6

Toyota Camry Toyota Camry Honda Honda Fit Fit

Subcompact Subcompact SUVSUV Luxury Compact Luxury Compact SUVSUV

4.64.6 3.23.2

5.05.0 3.63.6

0.40.4 0.40.4

Honda HR-V Honda HR-V Lexus Lexus NX NX

MiniMini VanVan Near Luxury Near Luxury CarCar

3.83.8 3.13.1

3.53.5 3.43.4

-0.3-0.3 0.30.3

Toyota Sienna Toyota Sienna Tesla Model Tesla Model 3 3

Luxury Luxury MidMid SizeSize SUVSUV Large Large VanVan

2.92.9 1.91.9

3.03.0 1.91.9

0.10.1 0.00.0

Lexus Lexus RX RX Transit Connect FordFord Transit Connect VanVan

Luxury High-end Sports Cars Luxury andand High-end Sports Cars Sports/Pony Sports/Pony carscars

1.71.7 1.31.3

1.51.5 1.21.2

-0.2-0.2 -0.1-0.1

BMW 5-Series BMW 5-Series Mustang FordFord Mustang

Large Large SUVSUV Luxury Subcompact Luxury Subcompact SUVSUV

0.90.9 0.70.7

0.90.9 0.90.9

0.00.0 0.20.2

Chevrolet Tahoe Chevrolet Tahoe BMW X1 BMW X1

Large Large CarCar Entry Luxury Entry Luxury CarCar

0.80.8 0.90.9

0.80.8 0.60.6

0.00.0 -0.3-0.3

Dodge Charger Dodge Charger Acura Acura ILX ILX

Luxury Large Luxury Large SUVSUV

0.30.3

0.00.0

Cadillac Escalade Cadillac Escalade

Segment Segment Compact Compact SUVSUV

table above shows Hawaii market share vehicle segments during months of 2017 2018, change in market share period. TheThe table above shows Hawaii market share for for 20 20 vehicle segments during thethe firstfirst ninenine months of 2017 andand 2018, andand thethe change in market share overover thethe period. The best selling model in each segment is also shown. Segments are ranked from top to bottom based on 2018 share. Data Source: IHS. The best selling model in each segment is also shown. Segments are ranked from top to bottom based on 2018 share. Data Source: IHS.

COMPACT SUV SEGMENT COMPACT SUV SEGMENT COMPACT SUV SEGMENT

Honda isisBest-Selling Compact SUV SUV inSUV State Market HondaCR-V CR-V isBest-Selling Best-Selling Compact StateMarket Market Honda CR-V Compact ininState Share Hawaii Compact Suv Segment - YTD 2018 thru September Share ofof Hawaii Compact Suv Segment - YTD 2018 thru September Honda CR-V Honda CR-V Toyota RAV4 Toyota RAV4 Nissan Rogue Nissan Rogue Subaru Crosstrek Subaru Crosstrek Subaru Forester Subaru Forester Wrangler JeepJeep Wrangler Mazda Mazda CX-5CX-5 Escape FordFord Escape Volkswagen Tiguan Volkswagen Tiguan Hyundai Tucson Hyundai Tucson Cherokee JeepJeep Cherokee Sportage Kia Kia Sportage Chevrolet Equinox Chevrolet Equinox Jeep Compass Jeep Compass GMC Terrain GMC Terrain Others Others 0.0% 0.0% Source: Source: IHS.IHS.

8.1% 8.1% 6.9% 6.9% 6.4% 6.4% 5.9% 5.9% 4.4% 4.4% 4.1% 4.1% 3.1% 3.1% 2.7% 2.7% 2.0% 2.0% 1.8% 1.8% 1.5% 1.5% 0.7% 0.7% 0.8% 0.8% 5.0% 5.0%

20.8% 20.8%

15.9% 15.9% 14.8% 14.8%

10.0% 15.0% 10.0% 15.0% Share of Compact SUV Segment Share of Compact SUV Segment

TOP SELLING COMPACT SUVS TOP SELLING COMPACT SUVS Honda CR-V Honda CR-V Toyota RAV4 Toyota RAV4 Nissan Rogue Nissan Rogue

20.0% 20.0%

25.0% 25.0%

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Page 4 Hawaii Auto Outlook Hawaii Auto Outlook Hawaii New Retail Car and Light Truck Registrations Retail Car and Light Truck Registrations

Third QuarterNew Hawaii

TOTAL TOTAL Acura Audi Acura BMW Audi Buick BMW Cadillac Buick Chevrolet Cadillac C/D/J/R Chevrolet Total ChryslerTotal C/D/J/R Dodge Chrysler Jeep Dodge Ram Jeep FIAT Ram Ford FIAT GMC Ford Honda GMC Hyundai Honda Infiniti Hyundai Jaguar Infiniti Kia Jaguar Land Kia Rover Lexus Land Rover Lincoln Lexus Mazda Lincoln Mercedes Mazda MINI Mercedes Mitsubishi MINI Nissan Mitsubishi Other Nissan Porsche Other Subaru Porsche Tesla Subaru Toyota Tesla Volkswagen Toyota Volvo Volkswagen

Registrations 3Q '17 Registrations 3Q '18 15,959 13,952 3Q '17 3Q '18 15,959 209 13,952 198 159 143 209 198 460 333 159 143 49 48 460 333 39 45 49 48 1,082 896 39 45 808 756 1,082 896 51 59 808 756 174 147 51 59 417 411 174 147 166 139 417 411 27 16 166 139 1,122 937 27 16 213 151 1,122 937 2,423 2,053 213 151 401 378 2,423 2,053 92 72 401 378 40 13 92 72 565 533 40 13 67 43 565 533 439 393 67 43 11 12 439 393 445 327 11 12 395 288 445 327 153 112 395 288 28 22 153 112 1,530 1,248 28 22 62 46 1,530 1,248 66 42 62 46 506 540 66 42 91 261 506 540 4,222 3,765 91 261 231 224 4,222 3,765 24 57 231 224

Volvo

Market Share (%) Third Quarter % change 3Q '17 3Q '18(%) Market Share -12.6 % change 3Q '17 3Q '18

Change

-12.6 -5.3 -10.1 -5.3 -27.6 -10.1 -2.0 -27.6 15.4 -2.0 -17.2 15.4 -6.4 -17.2 15.7 -6.4 -15.5 15.7 -1.4 -15.5 -16.3 -1.4 -40.7 -16.3 -16.5 -40.7 -29.1 -16.5 -15.3 -29.1 -5.7 -15.3 -21.7 -5.7 -67.5 -21.7 -5.7 -67.5 -35.8 -5.7 -10.5 -35.8 9.1 -10.5 -26.5 9.1 -27.1 -26.5 -26.8 -27.1 -21.4 -26.8 -18.4 -21.4 -25.8 -18.4 -36.4 -25.8 6.7 -36.4 186.8 6.7 -10.8 186.8 -3.0 -10.8 137.5 -3.0

1.3 1.0 1.3 2.9 1.0 0.3 2.9 0.2 0.3 6.8 0.2 5.1 6.8 0.3 5.1 1.1 0.3 2.6 1.1 1.0 2.6 0.2 1.0 7.0 0.2 1.3 7.0 15.2 1.3 2.5 15.2 0.6 2.5 0.3 0.6 3.5 0.3 0.4 3.5 2.8 0.4 0.1 2.8 2.8 0.1 2.5 2.8 1.0 2.5 0.2 1.0 9.6 0.2 0.4 9.6 0.4 0.4 3.2 0.4 0.6 3.2 26.5 0.6 1.4 26.5 0.2 1.4

1.4 1.0 1.4 2.4 1.0 0.3 2.4 0.3 0.3 6.4 0.3 5.4 6.4 0.4 5.4 1.1 0.4 2.9 1.1 1.0 2.9 0.1 1.0 6.7 0.1 1.1 6.7 14.7 1.1 2.7 14.7 0.5 2.7 0.1 0.5 3.8 0.1 0.3 3.8 2.8 0.3 0.1 2.8 2.3 0.1 2.1 2.3 0.8 2.1 0.2 0.8 8.9 0.2 0.3 8.9 0.3 0.3 3.9 0.3 1.9 3.9 27.0 1.9 1.6 27.0 0.4 1.6

Change 0.1 0.0 0.1 -0.5 0.0 0.0 -0.5 0.1 0.0 -0.4 0.1 0.3 -0.4 0.1 0.3 0.0 0.1 0.3 0.0 0.0 0.3 -0.1 0.0 -0.3 -0.1 -0.2 -0.3 -0.5 -0.2 0.2 -0.5 -0.1 0.2 -0.2 -0.1 0.3 -0.2 -0.1 0.3 0.0 -0.1 0.0 0.0 -0.5 0.0 -0.4 -0.5 -0.2 -0.4 0.0 -0.2 -0.7 0.0 -0.1 -0.7 -0.1 -0.1 0.7 -0.1 1.3 0.7 0.5 1.3 0.2 0.5 0.2 0.2

137.5

0.2

0.4

0.2

Year-to-date thru September Registrations Market Share (%) Year-to-date thru September YTD '17 Registrations YTD '18 % change YTD '17 YTD '18 Market Share (%) Change 45,699 43,210 -5.4 YTD '17 YTD '18 % change YTD '17 YTD '18 Change 45,699 652 43,210 557 -14.6 -5.4 1.4 1.3 -0.1 436 447 2.5 1.0 1.0 0.0 652 557 -14.6 1.4 1.3 -0.1 1,208 1,007 -16.6 2.6 2.3 -0.3 436 447 2.5 1.0 1.0 0.0 213 190 -10.8 0.5 0.4 -0.1 1,208 1,007 -16.6 2.6 2.3 -0.3 129 145 12.4 0.3 0.3 0.0 213 190 -10.8 0.5 0.4 -0.1 2,675 2,721 1.7 5.9 6.3 0.4 129 145 12.4 0.3 0.3 0.0 2,553 2,334 -8.6 5.6 5.4 -0.2 2,675 2,721 1.7 5.9 6.3 0.4 206 193 -6.3 0.5 0.4 -0.1 2,553 2,334 -8.6 5.6 5.4 -0.2 628 552 -12.1 1.4 1.3 -0.1 206 193 -6.3 0.5 0.4 -0.1 1,166 1,098 -5.8 2.6 2.5 -0.1 628 552 -12.1 1.4 1.3 -0.1 553 491 -11.2 1.2 1.1 -0.1 1,166 1,098 -5.8 2.6 2.5 -0.1 85 59 -30.6 0.2 0.1 -0.1 553 491 -11.2 1.2 1.1 -0.1 3,261 2,814 -13.7 7.1 6.5 -0.6 85 59 -30.6 0.2 0.1 -0.1 605 577 -4.6 1.3 1.3 0.0 3,261 2,814 -13.7 7.1 6.5 -0.6 7,142 6,471 -9.4 15.6 15.0 -0.6 605 577 -4.6 1.3 1.3 0.0 1,167 1,176 0.8 2.6 2.7 0.1 7,142 6,471 -9.4 15.6 15.0 -0.6 289 256 -11.4 0.6 0.6 0.0 1,167 1,176 0.8 2.6 2.7 0.1 108 63 -41.7 0.2 0.1 -0.1 289 256 -11.4 0.6 0.6 0.0 1,721 1,584 -8.0 3.8 3.7 -0.1 108 63 -41.7 0.2 0.1 -0.1 157 172 9.6 0.3 0.4 0.1 1,721 1,584 -8.0 3.8 3.7 -0.1 1,164 1,150 -1.2 2.5 2.7 0.2 157 172 9.6 0.3 0.4 0.1 24 40 66.7 0.1 0.1 0.0 1,164 1,150 -1.2 2.5 2.7 0.2 1,254 1,054 -15.9 2.7 2.4 -0.3 24 40 66.7 0.1 0.1 0.0 1,113 967 -13.1 2.4 2.2 -0.2 1,254 1,054 -15.9 2.7 2.4 -0.3 329 298 -9.4 0.7 0.7 0.0 1,113 967 -13.1 2.4 2.2 -0.2 97 87 -10.3 0.2 0.2 0.0 329 298 -9.4 0.7 0.7 0.0 4,565 4,043 -11.4 10.0 9.4 -0.6 97 87 -10.3 0.2 0.2 0.0 143 154 7.7 0.3 0.4 0.1 4,565 4,043 -11.4 10.0 9.4 -0.6 192 151 -21.4 0.4 0.3 -0.1 143 154 7.7 0.3 0.4 0.1 1,347 1,587 17.8 2.9 3.7 0.8 192 151 -21.4 0.4 0.3 -0.1 290 567 95.5 0.6 1.3 0.7 1,347 1,587 17.8 2.9 3.7 0.8 12,067 11,632 -3.6 26.4 26.9 0.5 290 567 95.5 0.6 1.3 0.7 633 776 22.6 1.4 1.8 0.4 12,067 11,632 -3.6 26.4 26.9 0.5 80 131 63.8 0.2 0.3 0.1 633 776 22.6 1.4 1.8 0.4 Source: 80 131 63.8 0.2 0.3IHS Markit. 0.1 Source: IHS Markit.

MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES MARKET VEHICLES MARKET TRACKER: TRACKER: HYBRID AND ELECTRIC ELECTRIC VEHICLES

Electric Vehicle Market Share Increased to 3%‘18 in 3Q ‘18 Electric Vehicle Market Share Increased to 3% to in 3Q Electric Vehicle Market Share Increased 3% in 3Q ‘18

Market Market Share Share

Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) 4.0% 3.5% 4.0% 3.0% 3.5% 2.5% 3.0% 2.0% 2.5% 1.5% 2.0% 1.0% 1.5% 0.5% 1.0% 0.0% 0.5% 0.0%

New Retail Hybrid and Electric Vehicle Registrations TopNew 10 Selling Retail Hybrid Modelsand in Hawaii Electric- Vehicle YTD '18 Registrations thru September Top 10 Selling Rank Model Models in Hawaii - YTD '18 thru September Regs.

Q3 15 Q3

Q4 15 Q4

Q1 16 Q1

Q2 16 Q2

Q3 16 Q3

16 16 Hybrid

Q4 16 Q4

Q1 17 Q1

1 Rank

Toyota Prius Model

406 Regs.

2 1

Nissan Prius Toyota Leaf

337 406

3 2

Tesla Model Nissan Leaf 3

304 337

4 3

Tesla Model 3 X

165 304

5 4

ToyotaModel Tesla RAV4X

139 165

Q1 18 Q1

Q2 18 Q2

Q3 18 Q3

6 5

Kia NiroRAV4 Toyota

110 139

7 6

TeslaNiro Kia Model S

110 98

17 18 Electric

8 7

ToyotaModel Tesla CamryS

Q2 17 Q2

Q3 17 Q3

16 17 17 Plug In Hybrid

Q4 17 Q4

Hybrid Plug In Hybrid Electric The graph above shows hybrid powertrain and electric vehicle quarterly market share in the state. Source: IHSabove Markit. The graph shows hybrid powertrain and electric vehicle quarterly market share in the state. Source: IHS Markit.

9 8

Chevrolet Toyota Camry Silverado

94 98

10 9

Hyundai Ioniq Chevrolet Silverado

75 94

Hyundai Ioniq

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HawaiiDealer

The Official Pub lication of the H awaii Automobi le Dealers Assoc iation

2018 1st Quarter Edition

... soon, to everything.

Established under HADA president Charlie King in 2002, the HawaiiDealer is a quarterly magazine that provides information on the activities of HADA members to a wide audience, including the membership of the Association, key employees at the dealerships, legislators, city council members, Hawaii media, the Congressional Delegation, and many Hawaii sister organizations. HADA appreciates the “sponsorship” of the official publication through the provision of sixth, third, half, and full-page color messages.

See story pages 8-10

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(small wave) broadband

Also in this Edition...

The Official Pub lication of the H awaii Automobi le Dealers Assoc iation

Covering Data thru June

if f

Mahalo!

Automobile Dealers

Volume 17, Number TM

Association

Remains Strong in First

Below is a list of 10 key trends and developments in the Hawaii vehicle market: new

1. State new retail registrations declined a slim 1.6% in the first half of this year versus a year earlier. The U.S. market fell by less than 1%.

2. As shown on the graph below, the market has plateaued during the past several years, with sales remaining at elevated levels. 3. Auto Outlook’s annual forecast for 2018 new retail light vehicle registrations: 58,750 units, down slightly from 2017. 4. Light truck market share increased from 63.4% during the first six months of 2017 to 67.2% this year. 5. Registrations for European brands were up 4% so far this year, while the overall market declined.

Market Outlook for next two years: New vehicle sales should remain above average; uncertainties increasing Strong economic growth, rising employment, and increasing incomes have helped keep new vehicle sales at elevated levels. Some potential storm clouds are on the horizon, however. Negative fallout from tariffs, rising interest rates, and inflationary pressures are concerns for the market.

Annual Trend in State

Market

Market Summary

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The Big Bang for EV Uptake or Epic Pile-up? Global consulting firm AlixPartners predicts “a pile-up of epic proportions” but HADA proposes a solution. See pages 12, 13, and 14

New light vehicle registrations

70,000 60,000 50,000 40,000 30,000

48705

54039

Half of 2018

10. Top ten selling vehicles in state market: Toyota Tacoma, Toyota 4Runner, Honda CR-V, Honda Civic, Toyota RAV4, Nissan Rogue, Toyota Camry, Ford F-Series, Toyota Corolla, and Honda HR-V.

Also in this Edition...

20,000

The Official Pub lication of the H awaii Automobi le Dealers Assoc iation

8. Brands with the largest percentage increases in registrations during the first six months of this year (among top 30 brands): Tesla, Land Rover, Volkswagen, Volvo, and Subaru 9. State market share leaders in the first Honda, Nissan, Ford and Chevrolet. half of 2018 were Toyota,

6. Alternative powertrain (hybrid and electric vehicle) market share was 6.1% thru June of this year, up slightly from last year. 7. Three biggest segments in the state are Compact SUV, Compact/ Mid Size Pickup, and Compact Car.

YES

2018 Convention Edition

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State New Vehicle Market



Dealer Day at the Capitol was held February 15, 2018. Please see the multi-page pictorial on pages 13–18

2018

Hawaii Auto Outlook

FORECAST

Tel 860-513-1213  Fax 860-513-1216 MyCompanyMagazine.com

The First Hawaiian International Auto Show annually keeps Hawaii “connected” with new automotive styles and new technology. See story on pages 8–10

See story pages 8, 9, and 10