Hawaii Dealer

The Official Publication of the Hawaii Automobile Dealers Association

2020 Spring Edition

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F U E L D I S C O U N T S O F F E R E D AT A L L H E L E A N D PA R T I C I PAT I N G 7 6 B R A N D E D R E TA I L S TAT I O N S .

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

Emerge, we will.

The sign reads “OPEN” but it is not as before.

Every Hawaii new car dealer can tell you that .

For some dealerships the first round of relief from D.C. wasn’t enough.

John Uekawa President-Elect Kenny Ching

AIADA chairman Jason Courter wrote in his blog, “the $349 billion disappeared faster than a snowflake on the hood of a hot NSX.”

Vice President Eric Fukunaga Secretary Wayne De Luz

Courter wrote that he applied for, but didn’t receive a PPP loan for his small business.

Hopefully, our HADA dealerships that applied will have received their loan assistance by now from the SBA.

Treasurer Bill van den Hurk

Much thanks goes to our associate member banks and financial institutions.

NADA Director Stan Masamitsu Hawaii Director Joe Hanley Maui Director

That relationship has proven to be everything during the complex application process.

No one feels comfortable about asking for help.

Everyone is struggling.

Jim Falk Kauai Director

There has been a lot learned, and a lot more to be learned as we emerge from this crisis.

Mike Niethammer Oahu Director Stan Masamitsu Oahu Director

But emerge, we will.

Much thanks goes to all our HADA dealers who we have been able to keep informed through our daily HADA COVID communications each morning.

Michael Stoebner Oahu Director Heather Cutter Oahu Director Brad Nicolai At-Large Director Marc Cutter At-Large Director Keoni Hansen

HADA STAFF Executive Director Dave Rolf

Much thanks to our associate members for your patience, too, as we worked through what seemed daily or weekly changes during the past forty days.

This edition of the HawaiiDealer shows some of the HADA activities before the crisis – which seem to have happened 1000 years ago. And it shows a lot of what is still going on, with a look to the upcoming days of masks, 6-foot distancing, and Stay-at-Home orders, still affecting many citizens in Hawaii.

We all look forward to a time when the auto industry gets back on its feet. It’s good to know our industry has friends to help in the process.

John Uekawa HADA President 2019, 2020 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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Things Were Going Well…

» Jackie De Luz represents Hawaii dealers at the Time Dealer of the Year Awards ceremony in Las Vegas, February 15, 2020.

» The Auto Lunch Bunch gathers March 4, 2020 at the Yacht Club in Waikiki to hear about the launch of the First Hawaiian Motor Con. » On Opening Day at the legislature, January 15, 2020 former Governor George Ariyoshi was acknowledged from the House floor, as also was HADA acknowledged. In the first months of the 2020 session, HADA testimony later was provided on 49 bills, mostly relating to electric vehicle uptake.

» NADA director Stan Masamitsu (beneath HADA sign) provides the NADA report at a HADA board of directors meeting, January 9, 2020.

8

» HADA dealer Bill van den Hurk, representing HADA dealers, testifies in a March 10, 2020 hearing before the Senate Transportation committee, with Gary Slovin and Curt Augustine, foreground, who testified on behalf of the Alliance of Automobile Innovators…on a bill relating to renewable fuels in vehicles and customer adoption rates of those vehicles.

Then THIS Happened

9

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What Was It Like BEFORE the Pandemic?

Driving Driving Hawaii’s Hawaii’s Economy Economy Annual Contribution of Hawaii’s New-Car Dealers Annual Contribution of Hawaii’s New-Car Dealers

Driving Hawaii’s Economy

Numbers reflect annual economic activity during 2019.

Numbers reflect annual economic activity during 2019.

Annual Contribution of Hawaii’s New-Car Dealers Numbers reflect annual economic activity during 2019.

68 68 DEALERSHIPS DEALERSHIPS (new car) (new 68car)

7,177 7,177 TOTAL JOBS TOTAL JOBS (created by dealerships) (created by dealerships) 7,177

64 64 EMPLOYEES EMPLOYEES (average per (average 64per dealership) dealership)

(new car)

(created by dealerships)

(average per dealership)

DEALERSHIPS

Includes 4,383 direct jobs and Includes 4,383and direct jobs jobs. and 2,794 indirect induced 2,794 indirect and induced jobs.

TOTAL JOBS

Includes 4,383 direct jobs and 2,794 indirect and induced jobs.

$5.8B $5.8B TOTAL SALES TOTAL SALES $5.8B (all dealerships) (all dealerships) TOTAL SALES

$279M $279M PAYROLL PAYROLL $279M $63,817 $694M

Hawaii’s Share of Total U.S. Hawaii’s Share of Total U.S. New-Vehicle Registrations New-Vehicle Registrations

(all dealerships)

Average Annual Earnings Earnings

Hawaii’s Share of Total U.S. New-Vehicle Registrations

PAYROLL$694M $63,817 Average Annual State and Federal

$63,817

State and Federal Income Taxes Paid Income Taxes Paid

$694M

Includes income taxes paid for direct, Includes income paid for and direct,Federal indirect andtaxes induced jobs.

Average Annual State indirect and induced jobs.

Sources: Center for Automotive Research, IHS Markit, NADA, Sources: Center for Automotive Taxfoundation.org, U.S.NADA, Bureau Research, IHS Markit, of Labor Statistics. U.S. Bureau Taxfoundation.org, Includes income taxes paid for direct, of Labor Statistics. indirect and induced jobs.

Sources: Center for Automotive Research, IHS Markit, NADA, Taxfoundation.org, U.S. Bureau NATIONAL AUTOMOBILE DEALERS ASSOCIATION of Labor Statistics.

NADA N A T IIndustry O N A L Analysis A U T O M| O8484 B I LWestpark E D E A LDrive, E R S Suite A S S500, O C ITysons, A T I O VA N 22102 | 800.557.6232 | economics@nada.org NADA Legislative Affairs| |8484 412 First St. SEDrive, | Washington, 20003VA| 800.563.5500 | legislative@nada.org Industry Analysis Westpark Suite 500,DC Tysons, 22102 | 800.557.6232 | economics@nada.org NADA Legislative Affairs | 412 First St. SE | Washington, DC 20003 | 800.563.5500 | legislative@nada.org

Earnings

12

EMPLOYEES

NATIONAL AUTOMOBILE DEALERS ASSOCIATION

Income Taxes Paid

0.6% 0.6% REGISTRATIONS REGISTRATIONS 0.6% REGISTRATIONS

$269M $269M STATE SALES STATE SALES TAX PAID $269M TAX PAID STATE SALES TAX PAID

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Empowering You Drive an electric vehicle to save money and go green

Many EVs can go 100+ miles on a full battery.

In Hawai‘i, where the average commute is less than 40 miles, many EV drivers choose to charge at home. There are also many options if charging is not available where you live, or you need a boost on the go.

When charging, keep in mind the differences in charging technology and speed.

LEVEL 2 CHARGE 1 hour = At least 12 miles of range FAST CHARGE 15 minutes = About 43 miles of range HAWAIIAN ELECTRIC FAST CHARGE Visit PlugShare.com for the latest public charging locations Map as of February 2020

PUBLIC DC FAST CHARGE LOCATIONS

O‘AHU

MAUI

Hawaii Kai - 7-Eleven 515 Pepeekeo St.

Haiku - Haiku Shopping Center 810 Haiku Rd.

Honolulu - Hawaiian Electric 820 Ward Ave.

Kahului - Maui Electric Company 210 West Kamehameha Ave.

Honolulu - Iwilei Costco 801 Dillingham Blvd.

Kahului - Queen Kaahumanu Center 275 West Kaahumanu Ave.

Kaneohe - Koolau Center 47-388 Hui Iwa St.

Kihei - Piilani Village Shopping Center 225 Piikea Ave.

Kapolei - Kapolei Commons 4470 Kapolei Pkwy.

Lahaina - Lahaina Aquatic Center 245 Shaw St.

Kapolei - Kapolei Shopping Center 91-590 Farrington Hwy.

Makawao - Kulamalu Town Center 55 Kiopaa St.

Pearl City - Times Square Shopping Center 98-1268 Kaahumanu St.

Makawao - Pukalani Terrace Center 55 Pukalani St

Haleiwa - Haleiwa Town Center 66-145 Kamehameha Hwy.

Wahiawa - Dole Plantation 64-1550 Kamehameha Hwy. Waianae - Waianae Mall 96-120 Farrington Hwy.

Haiku - Haiku Community Center Hana Hwy. at Pilialoha St.

Wailuku - Maui County Building 200 South High St. Wailuku - Maui Tropical Plantation 1670 Honoapiilani Hwy.

MOLOKA‘I

Kaunakakai - Ala Malama Center 64 Ala Malama Ave.

HAWAI‘I ISLAND

Hilo - Hawai‘i Electric Light 1200 Kilauea Ave. Kamuela - The Shops at Mauna Lani 68-1330 Mauna Lani Dr. Keaau - Keaau Shopping Center 16-586 Old Volcano Rd. Kona - Hawai‘i Electric Light 74-5519 Kaiwi St. Naalehu - Punaluu Bake Shop 95-5642 Mamalahoa Hwy. Papaaloa - Papaaloa Country Store 35-2023 Old Mamalahoa Hwy. Puna - Puna Kai Shopping Center 15-2714 Pahoa Village Rd.

COMING SOON

Waimea - KTA 65-1158 Mamalahoa Hwy.

Learn more at hawaiianelectric.com/GOEV

First Hawaiian Auto Show Canceled The annual First Hawaiian Motor Con, which scheduled to be held March 27-29 at the Hawai’i Convention Center, has been canceled.

Motor Trend Auto Shows, the Hawaii Automobile Dealers Association’s partner in producing the event, made the closure announcement after Gov. David Ige announced Tuesday that he is closing the convention center for the next 30 days.

“The COVID-19 challenge has brought us, as a community, together in many ways,” said Dave Rolf, executive director of HADA. “It is our continued wish for the health and safety of all.”

The event, formerly known as the First Hawaiian International Auto Show, typically attracts thousands of people.

—Honolulu Star-Advertiser story, March 17, 2020

Pandemic Crisis Brought About the Need to Cancel This Year’s HADA Convention It is with regret that this year’s HADA convention has been cancelled due to the curtailment of so many members travel plans during the ongoing coronavirus crisis.

Much thanks goes to convention chair Bill van den Hurk and hotel officials who conducted the negotiations which allowed for a fair settlement regarding the hotel contract. Thanks goes too, to golf co-chairs Byron Hansen and Pete Luke for their advance work this year.

Here’s to looking forward to the second week of October 2021, when it is hoped that HADA members can again gather for a weekend of seminars, our general meeting of the association, and the golf, dining and entertainment that have made the HADA convention so appreciated. We are told that the 500 room nights booked each year for the event and its 250 guests have made the HADA convention the largest state auto dealer convention in the country.

We are indeed saddened to see this popular event cancelled this year, but look forward to a big gathering of dealers, associate members and guests next year.

15

Get Ready.

Get Ready

for a metamorphosis.

Get Ready

for what comes this Summer.

Get Ready

for fewer jobs, but more attention to small business.

Get Ready

for more attention to diversifying the economy.

Get Ready

for a focus on things that fuel efficiencies.

Get Ready

for a change in employee learning

Get Ready

for more attention to the above, or the result will be the failure of so many businesses–who collectively employ half of Hawaii’s workforce.

“The survey of 623 Hawaii businesses found that 31 percent of respondents’ revenues have been reduced to zero, and 220,000 full- and part-time workers have lost their jobs.”

Source: University of Hawaii Economic Research Organization (UHERO), Chamber of Commerce Hawaii and 12 other industry associations.

16

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300 Highrise Buildings

EV/AV Adoption Bridge Education/University Engineers

70,000

60,000

5G LTE

Transportation + Construction

50,000

40,000

30,000

20,000

10,000

0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 All Vehicles

E Vehicles

HAVS Highly Autonomous Vehicles

New Car & Truck Projections Thru 2045

Tourism/Conventions + Military

eiπ+ 1 = 0 Source: Hawaii Automobile Dealers Association. Note: Hydrogen fuel cell electric Vehicles are included in EV numbers.

The Rosetta Stone graphic served as HADA’s predictions of vehicle uptake through 2045, before the pandemic hit. Now after this unprecedented black swan event, the upcoming dip in sales may be experienced may be more severe and arrive earlier, and also affect the uptake of EVs, HFCEVs, and AVs.

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Photo: Kaiwi Channel by William Renio

18

Hawaii Retail Automotive Market New Vehicle Registrations by Year

70,268

70000 65000

62,712 57,526

57,456

55000

54,544

50000

51,500 51,388 47,783

44,865

45000

45,249

44,175

40000

42,487 41,083 41,480 40,673

53,314

45,054

42,804

35000 2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

30000

33,639

2009

60000

67,224

65,882

During the 2008-2010 Global Financial Crisis, another Black Swan event, new vehicle sales fell dramatically to less than half of what had been levels only four years earlier. The 2020 pandemic may see new car and truck retail sales slip into the thirty-thousand unit range for the first time in forty-five years.

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19

Covering Data thru December 2019 Covering Data thru December 2019

Q4–2019

Hawaii Auto Outlook Outlook Hawaii Auto ™

TM

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

Volume 19, Number 1 Volume 19, Number 1

NOTE: THIS OUTLOOK EDITION REPRINTED HERE WAS INITIALLY PUBLISHED BEFORE THE COVID-19 PANDEMIC (Estimates of future registrations have changed…see mostrecent Hawaii Auto Outlook Q1, 2020 on pages 27, 28 and 29)

FORECAST FORECAST

New Vehicle Market Predicted to Remain Above 52,000 Units in 2020

New Vehicle Market Predicted to Remain Above 52,000 Units in 2020 Below is a summary of eight key trends and developments in the Hawaii new car and light truck market.

State new retail light vehicle registrations exceeded 53,000 units in 2019 The new vehicle market fell by 5.4% last year.

Despite the decline, 2019 marked the sixth consecutive year that new registrations exceeded 50,000 units, which is a respectable total for the Hawaii market.

New vehicle sales likely to soften in 2020 The gradual market slowdown that has been ongoing for the past three years should extend into 2020. Affordability is currently the biggest drag on new vehicle sales. Vehicle prices are increasing, interest rates are likely to hold steady, and household incomes are struggling to keep pace.

Trucks grab a larger share of state market Light truck market share increased from 48.7% in 2012 to 69.2% in 2019.

Alternative powertrain market improves State registrations of hybrid and electric cars and trucks increased 28% last year, while the overall market was down Toyota, Honda, Nissan, Ford and Chrysler/ Dodge/Jeep/Ram are leaders in state market Toyota was the best selling brand last year, with a 26.6% share. Nissan’s state share was 8.6%, well above its 5.7% share in the U.S. Tesla, Volvo, BMW, Lexus, and Mitsubishi posted gains New retail registrations for each of these five brands were up more than 9% from 2018 to 2019.

Toyota Corolla best-selling car in state market; Tacoma is light truck leader Tesla Model 3 and Toyota Camry were ranked second and third behind Corolla in the car market, while Toyota 4Runner and RAV4 trailed the Tacoma.

Annual Trend in State Market

New light vehicle registrations

40,000

48705

57094 58485 59137 56482

53458 52100

42463

30,000 20,000 10,000 0

2012 2013 2014 2015 2016 2017 2018 2019 2020 Forecast Historical Data Source: IHS. The graph above shows annual new retail light vehicle registrations in the state from 2012 thru 2019 and Auto Outlook’s projection for 2020.

20

Light Trucks (Pickups, SUVs, and Vans) DOWN 3.4% Passenger Cars DOWN 9.4% Source: IHS.

TOTAL

2018 Annual 56,482

2019 % Chg. Annual '18 to '19 53,458 -5.4%

Car Light Truck

18,143 38,339

16,440 37,018

-9.4% -3.4%

30.8% 69.2%

Domestic European Japanese Korean

12,240 5,536 35,077 3,629

12,260 5,316 32,778 3,104

0.2% -4.0% -6.6% -14.5%

22.9% 9.9% 61.3% 5.8%

60,000 54039

Percent Change in State Light Truck and Car Registrations 2019 vs. 2018

Market Summary

70,000

50,000

Non Luxury SUVs account for 36% of market Market share for Non Luxury SUVs increased to 36% last year. Small Car market share has fallen by more than eight points during the past three years.

Mkt. Share 2019

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

Page 2 Auto Outlook Hawaii Page Page 22

Hawaii Auto Outlook Outlook Page 2 Hawaii Hawaii Auto Auto Outlook

COUNTY SCOREBOARD SCOREBOARD COUNTY COUNTY COUNTY SCOREBOARD SCOREBOARD

All Four Four Island Island Markets MarketsDeclined Declinedinin in2019 2019 Island Markets Declined 2019 All All Four Island Markets Declined in 2019 New Vehicle Markets Summary New Vehicle Markets Summary New Vehicle Markets Summary Hawaii Kauai Hawaii Kauai Hawaii Kauai

The table table on on the the right right provides provides aa The The table on the right providesfour a summary of each of Hawaii’s summary ofof each each of of Hawaii’s Hawaii’s four four summary retail light light vehicle vehicle markets. markets. The The retail retail light vehicle markets.

The table is divided into four sections. table isis divided divided into into four four sections. sections. table Market Summary Summary shows total total new new Market shows Market Summary showsregistrations total new retail light vehicle retail light vehicle registrations retail registrations duringlight 2018vehicle and 2019 2019 and the the during 2018 and and during 2018 and The 2019 and the percent change. second and percent change. The second and percent change.

TheLight second third sections sections show Truckand and third show Light Truck and third sections showmarket Light Truck and Domestic Brand share.

The Domestic Brand market share. The Domestic Brandshows marketmarket share.share The fourth section fourth section shows market share fourth market figuressection for the theshows top 10 10 sellingshare light figures for top selling light figures for the top 10state. sellingThelight vehicle brands in the top vehicle brands in the state. The top vehicle brands in the state.

The topis rated county in each category rated county in each category is rated county in each category is shaded. shaded. shaded.

Oahu new new retail retail registrations registrations dedeOahu Oahu new retail registrations declined 5.2% last year.

Domestic clined 5.2% last year. Domestic clined 5.2% Domestic Brand market marketlast shareyear. was highest highest in in Brand share was Brand market share was highest in Kauai (29.2%) and lowest in Oahu Kauai (29.2%) and lowest in Oahu Kauai (29.2%) and lowest in Oahu (21.8%).

(21.8%).

(21.8%).

Market Summary Market Summary Market Summary 2018 Annual 7131 2805 2018 Annual 7131 2805 2018 7131 2805 2019Annual Annual 6781 2580 2019 Annual 6781 2580 2019 Annual 6781 2580 Percent change -4.9% -8.0% Percent change -4.9% -8.0% Percent change -4.9% -8.0% Light Truck Market Share Light Truck Market Share Light Market Share 2018Truck Annual 73.3% 79.8% 2018 Annual 73.3% 79.8% 2018 73.3% 79.8% 2019Annual Annual 75.7% 82.7% 2019 Annual 75.7% 82.7% 2019 Annual 75.7% 82.7% Change (share points) 2.4 2.9 Change (share points) 2.4 2.9 Change (share points) 2.4 2.9 Domestic Brand Market Share Domestic Brand Market Share Domestic Brand Market Share 2018 Annual 22.2% 26.9% 2018 Annual 22.2% 26.9% 2018 22.2% 26.9% 2019Annual Annual 25.1% 29.2% 2019 Annual 25.1% 29.2% 2019 Annual 25.1% 29.2% Change (share points) 2.9 2.3 Change (share points) 2.9 2.3 Change 2.9 2.3 Market(share Share points) for Top 10 Selling Brands in State - 2019 Market Share for Top 10 Selling Brands in State - 2019 Market Toyota Share for Top 10 Selling Brands in State - 2019 32.4% 30.7% Toyota 32.4% 30.7% Toyota 32.4% 30.7% Honda 13.9% 13.9% Honda 13.9% 13.9% Honda 13.9% 13.9% Nissan 8.5% 9.5% Nissan 8.5% 9.5% Nissan 8.5% 9.5% Ford 7.3% 11.9% Ford 7.3% 11.9% Ford 7.3% 11.9% CDJR* 7.1% 8.6% CDJR* 7.1% 8.6% CDJR* 7.1% 8.6% Chevrolet 8.4% 6.6% Chevrolet 8.4% 6.6% Chevrolet 8.4% 6.6% Subaru 6.8% 5.8% Subaru 6.8% 5.8% Subaru 6.8% 5.8% Lexus 0.5% 1.4% Lexus 0.5% 1.4% Lexus 0.5% 1.4% Tesla 1.4% Tesla 1.4% 1.4% Tesla 1.4% 1.4% Kia 5.8% 4.7% Kia 5.8% 4.7% Kia 5.8% 4.7% *CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram. Source: IHS *CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram. Source: IHS *CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram. Source: IHS

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

Toyota Share in in State State Is in U.S U.S...

Toyota Share Share in State Is 26.6% 26.6% vs. vs. 13.4% 13.4% in U.S Toyota Toyota Share in State Is State 26.6% vs.

13.4% in U.S .

Market U.S. Market Percent change change in in registrations registrations Percent Percent change in registrations 2019 vs. vs. 2018 2018 2019 2019 vs.

2018 Passenger car car market market share share Passenger Passenger car market share 2019 2019 2019 Domestic brand brand market market share share Domestic Domestic brand market share 2019 2019 2019 Top 10 10 brands brands and and market market share share Top Top 10 brands and market share 2019 2019 2019 First First First Second Second Second Third Third Third Fourth Fourth Fourth Fifth Fifth Sixth Fifth Sixth Seventh Sixth Seventh Eighth Seventh Eighth Ninth Eighth Ninth Tenth Ninth Tenth

Tenth Source: IHS. IHS. Source:

State Market State Market -5.4% -5.4% -5.4%

U.S. Market U.S. Market -2.6% -2.6% -2.6%

30.8% 30.8% 30.8%

27.7% 27.7% 27.7%

22.9% 22.9% 22.9%

41.1% 41.1% 41.1%

Toyota Toyota Toyota Honda Honda Honda Nissan Nissan Nissan Ford Ford Ford CDJR* CDJR* Chevrolet CDJR* Chevrolet Subaru Chevrolet Subaru Lexus Subaru Lexus Kia Lexus Kia Tesla Kia Tesla Tesla

26.6% 26.6% 26.6% 14.6% 14.6% 14.6% 8.6% 8.6% 8.6% 6.9% 6.9% 6.9% 5.7% 5.7% 5.6% 5.7% 5.6% 4.1% 5.6% 4.1% 3.4% 4.1% 3.4% 3.1% 3.4% 3.1% 3.1% 3.1% 3.1% 3.1%

*CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram. Source: IHS. combined *CDJR represents figures for Chrysler, Dodge, Jeep and Ram. *CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram.

Toyota Toyota Toyota CDJR* CDJR* CDJR* Ford Ford Ford Chevrolet Chevrolet Chevrolet Honda Honda Nissan Honda Nissan Subaru Nissan Subaru Hyundai Subaru Hyundai Kia Hyundai Kia GMC Kia GMC GMC

13.4% 13.4% 13.4% 11.5% 11.5% 11.5% 11.1% 11.1% 11.1% 10.8% 10.8% 10.8% 10.4% 10.4% 5.7% 10.4% 5.7% 4.7% 5.7% 4.7% 4.0% 4.7% 4.0% 3.8% 4.0% 3.8% 3.4% 3.8% 3.4% 3.4%

Maui Maui Maui

Oahu Oahu Oahu

6562 6562 6562 6185 6185 6185 -5.7% -5.7% -5.7%

39984 39984 39984 37912 37912 37912 -5.2% -5.2% -5.2%

74.4% 74.4% 74.4% 76.5% 76.5% 76.5% 2.1 2.1 2.1

65.0% 65.0% 65.0% 66.0% 66.0% 66.0% 1.0 1.0 1.0

23.8% 23.8% 23.8% 24.7% 24.7% 24.7% 0.8 0.8 0.8

20.9% 20.9% 20.9% 21.8% 21.8% 21.8% 1.0 1.0 1.0

24.3% 24.3% 24.3% 16.9% 16.9% 16.9% 8.9% 8.9% 8.9% 10.2% 10.2% 10.2% 5.5% 5.5% 5.5% 4.0% 4.0% 4.0% 6.8% 6.8% 6.8% 2.9% 2.9% 2.9% 2.7% 2.7% 2.7% 2.8% 2.8% 2.8%

25.7% 25.7% 25.7% 14.5% 14.5% 14.5% 8.5% 8.5% 8.5% 5.9% 5.9% 5.9% 5.3% 5.3% 5.3% 5.3% 5.3% 3.1% 3.1% 3.1% 4.1% 4.1% 4.1% 3.6% 3.6% 3.6% 2.5% 2.5% 2.5%

Hawaii Hawaii Hawaii Auto Outlook Outlook Auto Auto Outlook

Covering data data thru thru December December 2019 2019 Covering Covering data thru December 2019 Published for: for: Published HawaiiAutomobile Automobile Dealers Association Published for: Association Hawaii Dealers 1100 Alakea Street, Suite 2601 Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 Honolulu, HI 96813 1100Honolulu, Alakea Street, Suite 2601 HI 96813 Phone: 808-593-0031 Honolulu, HI 96813 Phone: 808-593-0031 Phone: 808-593-0031 Published by: Published by: Auto Outlook, Inc. Published by: Auto Outlook, Inc. PO Box 390 Auto Outlook, Inc. PO Box 390 Exton, PA 19341 19341 PO Box 390 Exton, PA Phone: 610-640-1233 Exton, PA 19341 Phone: 610-640-1233 EMail: jfoltz@autooutlook.com Phone: 610-640-1233 EMail: jfoltz@autooutlook.com Editor: JeffreyA. A.Foltz Foltz EMail: jfoltz@autooutlook.com Editor: Jeffrey JeffreyofA.this Foltz Reproduction, includingEditor: photocopying publication in whole or in

Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express ofpermission of Auto Outlook, Inc. Reproduction, including this publication whole or part, is prohibited withoutphotocopying the express permission of Auto inOutlook, Inc.in Any material quoted must be attributed to Hawaii Auto Outlook, pubpart,material is prohibited without express permission AutoOutlook, Outlook,pubInc. Any quoted must the be attributed to Hawaii ofAuto lished

by Auto Outlook, Inc. on attributed behalf of the Hawaii Automobile Dealers Any material to Hawaii Hawaii Auto Outlook, published

by Autoquoted Outlook,must Inc. be on behalf of the Automobile Dealers Association, and must also include the statement: “Data Source: IHS lished by Autoand Outlook, Inc. on behalfthe of the Hawaii Automobile Dealers Association, must also include statement: “Data Source: IHS Markit.” Unforeseen events may affect the forecast projections.

ConAssociation, and must also may include thethe statement: Source:ConIHS Markit. ” Unforeseen events affect forecast “Data projections. sequently, Auto Outlook is not responsible for management decisions Markit.” Unforeseen events mayresponsible affect the for forecast projections.

Consequently, Auto Outlook is not management decisions based on the content of Hawaii Auto Outlook.for management decisions sequently, Auto Outlook is not Auto responsible based on the content of Hawaii Outlook. based on the of Inc., Hawaii Auto Outlook.

Copyright Autocontent Outlook, February 2020 Copyright Auto Outlook, Inc., February 2020 Copyright Auto Outlook, Inc., February 2020

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Hawaii Auto Dealer Magazine December 16, 2019

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Hawaii Auto Outlook Covering Data thru December 2019 Covering Data thru December 2019 COVERING DATA THRU DECEMBER 2019 BRAND SCOREBOARD BRAND SCOREBOARD BRAND SCOREBOARD

Page 3 Page 3 Page 3

Tesla and Volvo Had Largest Percentage Gains in 2019 Tesla Gains in in 2019 Tesla and and Volvo VolvoHad HadLargest LargestPercentage Percentage Gains 2019 Eight brands had increases in 2019: hadVolkswagen, increases in 2019: Tesla,Eight Volvo, brands BMW, Lexus, Subaru, Ford, and Acura Tesla, Volvo, BMW, Lexus, Volkswagen, Subaru, Ford, and Acura

The graph below shows the change in new retail light vehiclebelow (combined lightintruck) regThe graph shows car the and change new retail istrations for all of 2019 versus a year earlier. light vehicle (combined car and light truck) regData source: istrations for IHS. all of 2019 versus a year earlier.

Data source: IHS.

Percent Change in State New Retail Light Vehicle Registrations (Top 25 brands) - 2019 vs. 2018 Percent Change in State New Retail Light Vehicle Registrations (Top 25 brands) - 2019 vs. 2018

BuickBuick

GMC GMC

Mazda Mazda

InfinitiInfiniti

Kia Kia

Cadillac Cadillac

Audi Audi

Mercedes Mercedes

-100.0%

Land Land RoverRover

Nissan Nissan

Chevrolet Chevrolet

MINI MINI

Honda Honda

-50.0%

ToyotaToyota

-50.0%

Hyundai Hyundai

0.0%

Porsche Porsche

CDJRCDJR

AcuraAcura

0.0%

Ford Ford

50.0%

Subaru Subaru

BMWBMW

50.0%

Volkswagen Volkswagen

100.0%

LexusLexus

100.0%

VolvoVolvo

150.0%

TeslaTesla

150.0%

-100.0% CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram. CDJR represents combined figures for Chrysler, Dodge, Jeep and Ram.

LONG TERM TRENDS LONG TERM TRENDS LONG TERM TRENDS

Registrations LikelytotoExceed Exceed 50K for 7th Straight Year in 2020 Registrations Likely 50K for 7th Straight Year in 2020 Registrations Likely to Exceed 50K for 7th Straight Year in 2020

The graph below provides a long term perspective of trends in the Hawaii new retail light vehicle market. It shows historical registrations from 2007 thru 2019,below along provides with AutoaOutlook’s for 2020.

The graph long termforecast perspective of trends in the Hawaii new retail light vehicle market. It shows historical registrations from 2007 thru 2019, along with Auto Outlook’s forecast for 2020.

Hawaii New Retail Light Vehicle Registrations - 2007 thru 2019, 2020 Forecast Hawaii New Retail Light Vehicle Registrations - 2007 thru 2019, 2020 Forecast New retail vehicle registrations New retail light light vehicle registrations

60,000

60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0

2020 Proj.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Regs. 54492 41184 32878 32649 35576 42463 48705 54039 57094 58485 59137 56482 53458 52100 Proj.

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Regs. 54492 41184 32878 32649 35576 42463 48705 54039 57094 58485 59137 56482 53458 52100 Years Source: IHS Years

24

Source: IHS

State market improved 81% State market between ‘10 improved 81% and ‘17, and between ‘10 remained strong and ‘17, and in the ensuremained strong ing twoensuyears. in the Small decline ing two years. is predicted in Small decline ‘20, with annual is predicted in total exceeding ‘20, with annual 52,000 units total exceeding 52,000 units

Page 4 Hawaii Auto Outlook Page 4

Hawaii Auto Outlook Page 4 Hawaii Auto Outlook

Hawaii New Retail Car and Light Truck Registrations FourthHawaii Quarter New Retail Car and Light Truck Registrations

TOTAL TOTAL Acura

Fourth Quarter Market Share (%) Registrations 4Q '18 Registrations 4Q '19 % change 4Q '18 Market4QShare '19 (%) Change 13,293 12,177 -8.4 4Q '18 4Q '19 % change 4Q '18 4Q '19 Change 13,293 12,177 175 182 4.0-8.4 1.3 1.5 0.2

Audi 117175 106182 Acura BMW 303117 446106 Audi Buick 41303 34446 BMW Cadillac 4041 2434 Buick Chevrolet 784 687 Cadillac 40 24 CDJR* 765784 716687 Chevrolet FIATCDJR* 11765 2 716 Ford 80311 886 2 FIAT GMC 160803 97886 Ford Honda 1,879160 1,77897 GMC Hyundai 361 380 Honda 1,879 1,778 Infiniti 65361 63380 Hyundai Jaguar 15 863 Infiniti 65 KiaJaguar 48615 343 8 Land 51486 50343 KiaRover Lexus 42551 46750 Land Rover Lincoln 13425 17467 Lexus Mazda 280 180 Lincoln 13 17 Mercedes 371280 279180 Mazda MINI 99371 73279 Mercedes Mitsubishi 2499 2773 MINI Nissan 1,333 1,057 Mitsubishi 24 27 Other 39 21 Nissan 1,333 1,057 Porsche 5139 5721 Other Subaru 54851 49057 Porsche Tesla 296548 334490 Subaru Toyota 3,537296 3,066334 Tesla Volkswagen 182 225 Toyota 3,537 3,066 Volvo 39182 82225 Volkswagen Volvoincludes Chrysler, Dodge, 39Jeep, and Ram 82 *CDJR *CDJR includes Chrysler, Dodge, Jeep, and Ram

-9.44.0 47.2-9.4 -17.1 47.2 -40.0 -17.1 -12.4 -40.0 -6.4 -12.4 -81.8 -6.4 10.3 -81.8 -39.4 10.3 -5.4 -39.4 5.3-5.4 -3.15.3 -46.7 -3.1 -29.4 -46.7 -2.0 -29.4 9.9-2.0 30.89.9 -35.7 30.8 -24.8 -35.7 -26.3 -24.8 12.5 -26.3 -20.7 12.5 -46.2 -20.7 11.8 -46.2 -10.6 11.8 12.8 -10.6 -13.3 12.8 23.6 -13.3 110.3 23.6 110.3

0.91.3 2.30.9 0.32.3 0.30.3 5.90.3 5.85.9 0.15.8 6.00.1 1.26.0 14.11.2 2.7 14.1 0.52.7 0.10.5 3.70.1 0.43.7 3.20.4 0.13.2 2.10.1 2.82.1 0.72.8 0.20.7 10.00.2 0.3 10.0 0.40.3 4.10.4 2.24.1 26.62.2 1.4 26.6 0.31.4 0.3

0.91.5 3.70.9 0.33.7 0.20.3 5.60.2 5.95.6 0.05.9 7.30.0 0.87.3 14.60.8 3.1 14.6 0.53.1 0.10.5 2.80.1 0.42.8 3.80.4 0.13.8 1.50.1 2.31.5 0.62.3 0.20.6 8.70.2 0.28.7 0.50.2 4.00.5 2.74.0 25.22.7 1.8 25.2 0.71.8 0.7

0.00.2 1.40.0 0.01.4 -0.10.0 -0.3-0.1 0.1-0.3 -0.10.1 1.3-0.1 -0.41.3 0.5-0.4 0.40.5 0.00.4 0.00.0 -0.90.0 0.0-0.9 0.60.0 0.00.6 -0.60.0 -0.5-0.6 -0.1-0.5 0.0-0.1 -1.30.0 -0.1-1.3 0.1-0.1 -0.10.1 0.5-0.1 -1.40.5 0.4-1.4 0.40.4 0.4

Annual Totals Annual Totals Market Share (%) Registrations 2018 Registrations 2019 % change 2018Market Share 2019 (%)Change 56,482 53,458 -5.4 2018 2019 % change 2018 2019 Change 56,482 53,458 728 736 1.1-5.4 1.3 1.4 0.1 562728 473736 -15.81.1 1.01.3 0.91.4 -0.10.1 1,310562 1,500473 14.5 2.31.0 2.80.9 0.5-0.1 -15.8 231 143 -38.1 0.42.3 0.32.8 -0.10.5 1,310 1,500 14.5 185231 147143 -20.5 0.30.4 0.30.3 0.0-0.1 -38.1 3,485185 2,998147 -14.0 6.2 5.6 -0.6 -20.5 0.3 0.3 0.0 3,097 3,043 -1.7 5.56.2 5.75.6 0.2-0.6 3,485 2,998 -14.0 70 40 -42.9 0.15.5 0.15.7 0.00.2 3,097 3,043 -1.7 3,58570 3,68240 2.7 6.30.1 6.90.1 0.60.0 -42.9 737 523 -29.0 1.3 1.0 -0.3 3,585 3,682 2.7 6.3 6.9 0.6 8,350737 7,830523 -6.2 14.81.3 14.61.0 -0.2-0.3 -29.0 1,533 1,453 -5.2-6.2 2.7 2.7 0.0-0.2 8,350 7,830 14.8 14.6 317 243 -23.3 0.62.7 0.52.7 -0.10.0 1,533 1,453 -5.2 78317 63243 -19.2 0.10.6 0.10.5 0.0-0.1 -23.3 2,07078 1,63563 -21.0 3.70.1 3.10.1 -0.60.0 -19.2 223 188 -15.7 0.43.7 0.43.1 0.0-0.6 2,070 1,635 -21.0 1,575223 1,802188 14.4 2.80.4 3.40.4 0.60.0 -15.7 53 49 -7.5 0.12.8 0.13.4 0.00.6 1,575 1,802 14.4 1,32953 1,01349 -23.8 2.4 1.9 -0.5 -7.5 0.1 0.1 0.0 1,396 1,130 -19.1 2.52.4 2.11.9 -0.4-0.5 1,329 1,013 -23.8 397 359 -9.6 0.72.5 0.72.1 0.0-0.4 1,396 1,130 -19.1 111397 122359 9.9-9.6 0.20.7 0.20.7 0.00.0 5,374111 4,609122 -14.29.9 9.50.2 8.60.2 -0.90.0 193 102 -47.2 0.39.5 0.28.6 -0.1-0.9 5,374 4,609 -14.2 210193 201102 -4.3 0.40.3 0.40.2 0.0-0.1 -47.2 2,135210 2,197201 2.9-4.3 3.80.4 4.10.4 0.30.0 863 1,671 93.6 1.5 3.1 1.60.3 2,135 2,197 2.9 3.8 4.1 15,157863 14,226 -6.1 26.81.5 26.63.1 -0.21.6 1,671 93.6 962 1,015 5.5-6.1 1.7 1.9 0.2-0.2 15,157 14,226 26.8 26.6 166962 265 59.65.5 0.31.7 0.51.9 0.20.2 1,015 166 265 59.6 0.3 0.5 IHS.0.2 Source: Source: IHS.

MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES MARKETTRACKER: TRACKER: HYBRID HYBRID AND MARKET ANDELECTRIC ELECTRICVEHICLES VEHICLES

Electric VehicleMarket MarketShare ShareWas Was 4.0% in 4Q 2019 Electric Vehicle 4.0% in 4Q 2019 Electric Vehicle Market Share Was 4.0% in 4Q 2019

Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) Hybrid, Plug In, & Electric vehicle market share Q4 ‘19:vehicle Hybrid, Plug In, &in Electric market share in Q4 ‘19:

6.0% 6.0% 5.0%

8.4% 8.4%

Market Share Market Share

5.0% 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0%

Q1 17Q1 17

Q2 17Q2 17

Q3 17Q3 17

Q4 17Q4 17

Q1 18Q1 18

Q2 Q3 Q4 18Q2 18Q3 18Q4 18 18 18 Hybrid Plug In Hybrid Electric Hybrid Plug In Hybrid Electric The graph above shows hybrid powertrain and electric vehicle quarterly market share in the state. Source: IHS. The graph above shows hybrid powertrain and electric vehicle quarterly market share in the state. Source: IHS.

Q1 19Q1 19

Q2 19Q2 19

Q3 19Q3 19

Q4 19Q4 19

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Covering Data thru March 2020 Covering Data thru March 2020

Q1-2020

Hawaii Auto Outlook Outlook Hawaii Auto ™

Volume 19, Number 2 Volume 19, Number 2

TM

Sponsored by: Hawaii Automobile Dealers Association Sponsored by: Hawaii Automobile Dealers Association SPECIAL REPORT SPECIAL REPORT

COVID-19 Pandemic Puts the Brakes on State New Vehicle Market

COVID-19 Pandemic Puts the Brakes on State New Vehicle Market The Hawaii new vehicle market got off to a good start in the first two months of this year. And then the bottom fell out when the COVID-19 crisis took hold in March. Below is a summary of where the market was before the pandemic hit, the impact it could have on sales, and the key factors that are likely to dictate the speed and strength of the ensuing recovery.

Where was the State new vehicle market before the pandemic hit?

As shown on the graph below, new retail light vehicle registrations in the state exceeded 50,000 units between 2013 and 2019. It was an unprecedented streak of consistently high sales. Affordability was becoming a bit of a concern, but the economy was growing, unemployment was low, and incomes were increasing. The market was strong before the crisis hit, and it will eventually regain that strength, but it will take some time.

What impact will the pandemic have on the State market?

New vehicle registrations as reported by Experian declined 6.6% in the First Quarter of this year versus a year earlier. But the measurement of registrations typically lags actual vehicle sales at dealerships. New vehicle sales declined significantly in March and April.

At this point, our projection is that new retail registrations this year will fall to 38,250 units,

a 33% decline from 2019. But forecasting the market right now is extremely difficult. This is clearly not a typical cyclical economic downturn. Vehicle sales will be impacted by the spread of the virus and changes in governmental policies regarding business operations.

And these considerations are not part of the traditional statistical models used to predict the auto market.

One thing, however, seems likely right now: The low point in sales should occur in 2020 after which, the market can start what is likely to be a slow upward climb.

How fast will the market recover when restrictions are eased?

The dramatic sales slump will result in the accumulation of pent-up-demand, fueling an upswing in sales that will likely lead the market to higher levels over the next several years.

For the Hawaii and Mainland markets, there are three keys to monitor over the next few months to get a handle on how swiftly the recovery could progress. First, how quickly will business restrictions be lifted so that economic activity can resume in earnest? Second, how many businesses will manage to survive during the shutdown? And third, how long will it take for households to repair their balance sheets? Rising unemployment and lost wages will result in growing debt, and a

depletion of savings. Stimulus checks and 0% interest rates will help, and the balance sheet correction should be less severe than during the great recession. But many households will be dealing with the financial consequences of a significant interruption in income, which will crimp spending on big ticket items, like new vehicles For the Hawaii market, there are some additional and unique challenges that are almost certain to slow the pace of the recovery. Absent a vaccine or highly effective treatment for the virus, people will likely be reluctant to board a plane, get in somebody else’s car, or stay in a hotel. Combined with the financial hit that many households will feel, tourism in the state will likely be impacted for an extended period.

There are simply too many unknowns right now to even guess at the exact timing and speed of the sales recovery. Frankly, it’s a question more suited for epidemiologists than economists.

Based on what we know now, sales will obviously fall in 2020, and barring a resurgence in the pandemic over the next 12 months, the market should have a decent chance to move higher in 2021. But the recovery is likely to proceed gradually, and it could take several years for registrations in the sate to return to the 50,000 unit level.

Annual New Light Vehicle Registrations in Hawaii - 2008 thru 2020 New light vehicle registrations

80,000 60,000 40,000

44837

42802 20,000 0

2008

33638

34019

2009

2010

Source for historical data: AutoCount data from Experian.

51655

2012

57705

62716

62457

59480

57323 38250

State registrations are predicted to decline sharply in 2020, but at this point, they are projected to remain above 2009 levels.

37090

2011

57040

2013

2014

2015

2016

2017

2018

2019

2020 Forecast

27

Hawaii Auto Outlook Covering thru March 2020 CoveringData Data March 2020 COVERING DATAthru THRU MARCH 2020

Page Page33

BEST SELLING SUVS IN STATE MARKET BEST SELLING SUVS STATE MARKET BEST SELLING SUVS IN IN STATE MARKET

Toyota RAV4 and 4Runner Lead Hawaii SUV Market Toyota Hawaii SUV Market ToyotaRAV4 RAV4and and4Runner 4RunnerLead Lead Hawaii SUV Market Share ShareofofHawaii HawaiiSUV SUVMarket Market- Top - Top15 15Selling SellingModels, Models,YTD YTD2020 2020thru thruMarch March Toyota RAV4 Toyota RAV4 Toyota 4Runner Toyota 4Runner Honda CR-V Honda CR-V Honda HR-V Honda HR-V Subaru XV Crosstrek Subaru XV Crosstrek Subaru Forester Subaru Forester Nissan Rogue Nissan Rogue Jeep Wrangler Jeep Wrangler Mazda CX5 Mazda CX5 Toyota Highlander Toyota Highlander Lexus RX Lexus RX Nissan Kicks Nissan Kicks Lexus NX Lexus NX Honda Pilot Honda Pilot Toyota C-HR Toyota C-HR 0.0% 0.0% Source: AutoCount data from Experian.

Source: AutoCount data from Experian.

9.9% 9.9% 9.2% 9.2% 6.4% 6.4% 5.2% 5.2% 3.8% 3.8% 3.3% 3.3% 3.0% 3.0% 2.4% 2.4% 2.3% 2.3% 1.9% 1.9% 1.9% 1.9% 1.8% 1.8% 1.7% 1.7% 1.7% 1.7% 1.5% 1.5% 2.0% 2.0%

4.0% 4.0%

TOP SELLING SUVs TOP SELLING SUVs Toyota RAV4 Toyota RAV4 Toyota 4Runner Toyota 4Runner Honda CR-V Honda CR-V

6.0% 6.0% Share of SUV market Share of SUV market

8.0% 8.0%

10.0% 10.0%

12.0% 12.0%

COUNTY SCOREBOARD COUNTY COUNTYSCOREBOARD SCOREBOARD

All ofof 2020 All Four Four Island Island Markets MarketsDeclined DeclinedininFirst FirstQuarter Quarter 2020

All Four Island Markets Declined in First Quarter of 2020

The Thetable tableononthe theright rightprovides providesa a summary of each of Hawaii’s summary of each of Hawaii’sfour four retail retail light light vehicle vehicle markets. markets.The The table tableisisdivided dividedinto intofour foursections. sections.

Market MarketSummary Summaryshows showstotal totalnew new retail light vehicle registrations retail light vehicle registrationsdurduringingthe thefirst firstthree threemonths monthsofof2019 2019 and 2020 and the percent and 2020 and the percentchange. change.

The Thesecond secondand andthird thirdsections sectionsshow show Light Truck and Domestic Light Truck and DomesticBrand Brand market marketshare. share.The Thefourth fourthsection section shows market share figures shows market share figuresforforthe the top top1010selling sellinglight lightvehicle vehiclebrands brands ininthe thestate. state.The Thetop toprated ratedcounty countyinin each category is shaded. each category is shaded.

Oahu Oahunew newretail retailregistrations registrationsdedeclined 5.1% in the clined 5.1% in theFirst FirstQuarter.

Quarter.

Domestic DomesticBrand Brandmarket marketshare sharewas was highest in Maui (26.0%) and highest in Maui (26.0%) andlowest lowest ononthe theBig BigIsland Island(21.0%).

(21.0%).

28

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

Market Summary Market Summary YTD '19 thru March 1831 742 YTD '19 thru March 1831 742 YTD '20 thru March 1674 631 YTD '20 thru March 1674 631 Percent change -8.6% -15.0% Percent change -8.6% -15.0% Light Truck Market Share Light Truck Market Share YTD '19 thru March 74.5% 79.9% YTD '19 thru March 74.5% 79.9% YTD '20 thru March 75.7% 81.0% YTD '20 thru March 75.7% 81.0% Change (share points) 1.3 1.1 Change (share points) 1.3 1.1 Domestic Brand Market Share Domestic Brand Market Share YTD '19 thru March 24.9% 28.2% YTD '19 thru March 24.9% 28.2% YTD '20 thru March 21.0% 22.8% YTD '20 thru March 21.0% 22.8% Change (share points) -3.9 -5.3 Change (share points) -3.9 -5.3 Market Share for Top 10 Selling Brands in State - YTD '20 thru March Market Share for Top 10 Selling Brands in State - YTD '20 thru March Toyota 30.9% 35.0% Toyota 30.9% 35.0% Honda 12.5% 13.2% Honda 12.5% 13.2% Nissan 10.1% 8.2% Nissan 10.1% 8.2% Ford 6.3% 10.1% Ford 6.3% 10.1% Subaru 8.7% 9.8% Subaru 8.7% 9.8% Chevrolet 5.8% 3.2% Chevrolet 5.8% 3.2% Kia 9.2% 5.4% Kia 9.2% 5.4% Tesla 1.6% 1.6% Tesla 1.6% 1.6% Hyundai 2.5% 2.1% Hyundai 2.5% 2.1% Jeep 2.9% 3.3% Jeep 2.9% 3.3%

Maui Maui

Oahu Oahu

1596 1596 1433 1433 -10.2% -10.2%

10471 10471 9939 9939 -5.1% -5.1%

73.6% 73.6% 78.3% 78.3% 4.7 4.7

65.1% 65.1% 67.5% 67.5% 2.4 2.4

23.4% 23.4% 26.0% 26.0% 2.6 2.6

22.0% 22.0% 21.3% 21.3% -0.7 -0.7

21.6% 21.6% 15.1% 15.1% 9.8% 9.8% 8.9% 8.9% 5.7% 5.7% 3.6% 3.6% 3.5% 3.5% 3.3% 3.3% 3.4% 3.4% 5.2% 5.2%

26.3% 26.3% 13.8% 13.8% 8.2% 8.2% 6.8% 6.8% 3.4% 3.4% 4.2% 4.2% 3.5% 3.5% 3.8% 3.8% 3.3% 3.3% 2.8% 2.8%

Hawaii Page 4 Auto Outlook

Hawaii Auto Outlook

Brand Registrations Report Hawaii New Retail Car and Light Truck Registrations

TOTAL

First Quarter Registrations Market Share (%) 1Q '19 1Q '20 % change 1Q '19 1Q '20 Change 14,640 13,679 -6.6

Annual Totals Registrations Market Share (%) 2018 2019 % change 2018 2019 Change 59,480 57,323 -3.6

Cars Light Trucks

4,693 9,947

4,069 9,610

-13.3 -3.4

32.1 67.9

29.7 70.3

-2.4 2.4

19,392 40,088

17,909 39,414

-7.6 -1.7

32.6 67.4

31.2 68.8

-1.4 1.4

Domestic Brands European Brands Japanese Brands Korean Brands

3,340 1,453 9,021 826

2,987 1,398 8,259 1,035

-10.6 -3.8 -8.4 25.3

22.8 9.9 61.6 5.6

21.8 10.2 60.4 7.6

-1.0 0.3 -1.2 2.0

12,951 5,931 36,828 3,770

13,331 5,848 34,790 3,354

2.9 -1.4 -5.5 -11.0

21.8 10.0 61.9 6.3

23.3 10.2 60.7 5.9

1.5 0.2 -1.2 -0.4

Acura 219 181 Audi 124 182 BMW 366 301 Buick 33 23 Cadillac 49 40 Chevrolet 895 590 CDJR Total 776 758 Chrysler 39 39 Dodge 182 113 Jeep 354 427 Ram 201 179 FIAT 17 10 Ford 888 971 Genesis 1 15 GMC 126 129 Honda 2,058 1,877 Hyundai 411 433 Infiniti 66 76 Jaguar 22 20 Kia 414 587 Land Rover 49 59 Lexus 501 386 Lincoln 14 15 Maserati 2 4 Mazda 323 244 Mercedes 354 368 MINI 102 68 Mitsubishi 43 30 Nissan 1,179 1,173 Other 18 12 Porsche 69 57 Subaru 614 626 Tesla 558 461 Toyota 4,018 3,666 Volkswagen 292 247 Volvo 39 70 Source: AutoCount data from Experian.

-17.4 46.8 -17.8 -30.3 -18.4 -34.1 -2.3 0.0 -37.9 20.6 -10.9 -41.2 9.3 1400.0 2.4 -8.8 5.4 15.2 -9.1 41.8 20.4 -23.0 7.1 100.0 -24.5 4.0 -33.3 -30.2 -0.5 -33.3 -17.4 2.0 -17.4 -8.8 -15.4 79.5

1.5 0.8 2.5 0.2 0.3 6.1 5.3 0.3 1.2 2.4 1.4 0.1 6.1 0.0 0.9 14.1 2.8 0.5 0.2 2.8 0.3 3.4 0.1 0.0 2.2 2.4 0.7 0.3 8.1 0.1 0.5 4.2 3.8 27.4 2.0 0.3

1.3 1.3 2.2 0.2 0.3 4.3 5.5 0.3 0.8 3.1 1.3 0.1 7.1 0.1 0.9 13.7 3.2 0.6 0.1 4.3 0.4 2.8 0.1 0.0 1.8 2.7 0.5 0.2 8.6 0.1 0.4 4.6 3.4 26.8 1.8 0.5

-0.2 0.5 -0.3 0.0 0.0 -1.8 0.2 0.0 -0.4 0.7 -0.1 0.0 1.0 0.1 0.0 -0.4 0.4 0.1 -0.1 1.5 0.1 -0.6 0.0 0.0 -0.4 0.3 -0.2 -0.1 0.5 0.0 -0.1 0.4 -0.4 -0.6 -0.2 0.2

752 619 1,387 236 189 3,678 3,333 290 764 1,552 727 78 3,797 26 778 8,684 1,611 328 80 2,133 233 1,673 55 40 1,440 1,510 422 116 5,719 131 236 2,278 883 15,838 1,028 169

772 533 1,630 147 148 3,307 3,366 232 683 1,607 844 42 4,044 17 515 8,180 1,580 241 70 1,757 204 1,943 56 23 1,070 1,287 390 132 4,994 71 242 2,355 1,747 15,103 1,104 253

2.7 -13.9 17.5 -37.7 -21.7 -10.1 1.0 -20.0 -10.6 3.5 16.1 -46.2 6.5 -34.6 -33.8 -5.8 -1.9 -26.5 -12.5 -17.6 -12.4 16.1 1.8 -42.5 -25.7 -14.8 -7.6 13.8 -12.7 -45.8 2.5 3.4 97.8 -4.6 7.4 49.7

1.3 1.0 2.3 0.4 0.3 6.2 5.6 0.5 1.3 2.6 1.2 0.1 6.4 0.0 1.3 14.6 2.7 0.6 0.1 3.6 0.4 2.8 0.1 0.1 2.4 2.5 0.7 0.2 9.6 0.2 0.4 3.8 1.5 26.6 1.7 0.3

1.3 0.9 2.8 0.3 0.3 5.8 5.9 0.4 1.2 2.8 1.5 0.1 7.1 0.0 0.9 14.3 2.8 0.4 0.1 3.1 0.4 3.4 0.1 0.0 1.9 2.2 0.7 0.2 8.7 0.1 0.4 4.1 3.0 26.3 1.9 0.4

0.0 -0.1 0.5 -0.1 0.0 -0.4 0.3 -0.1 -0.1 0.2 0.3 0.0 0.7 0.0 -0.4 -0.3 0.1 -0.2 0.0 -0.5 0.0 0.6 0.0 -0.1 -0.5 -0.3 0.0 0.0 -0.9 -0.1 0.0 0.3 1.5 -0.3 0.2 0.1

The table above shows new retail light vehicle (car and light truck) registrations in Hawaii. Figures are shown for the First Quarters of 2019 and 2020, and annual totals for 2018 and 2019. The top ten ranked brands in each category are shaded yellow.

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