BRAND WATCH

LUXURY SEGMENT TOPLINE REPORT

4th Quarter 2021

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 BRAND WATCH Q4 2021 KEY TAKEAWAYS

#1 #3

Lexus Beat BMW as Most Considered Luxury SUV Consideration Reached Tesla Reached No. 3 for the First Time
Luxury Brand New Heights Model 3 and Model Y rebounded, lifting
Consideration for Lexus surpassed BMW Tesla Model Y, BMW X5 and Acura Tesla consideration by 3 percentage points
for the first time in 7 years. RDX experienced significant growth in – biggest gain in the luxury market.
consideration.

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 BRAND WATCH: LUXURY CONSIDERATION
After a 3-year run as the most considered luxury brand, BMW was edged out by Lexus for the No. 1 spot. In Q2 2018, German rival Audi bested
BMW for the top spot. For the first time, Tesla climbed to the No. 3 spot after a whopping 3-percentage point gain.

Lexus Dethroned BMW QUARTERLY BRAND CONSIDERATION QUARTERLY CONSIDERATION GROWTH

• Lexus ranked No. 1 for the first time in 7 Q3-21 Q4-21 T OP 10 M OD EL S
years, grabbing the spot from BMW but by Q4-21 vs. Q3-21
less than a tenth of a percent. 19% 20%
• Despite the chip shortage, Lexus was one of 19% 20%
the few brands that effectively managed its 15% 18% Model 3 56%
production and distribution to meet market 17% 16%
demand. 16% 15% Model Y 43%
• The RX lost some traction. 14% 13%
RX -5%
12% 11%
8% 8% MDX -6%
BMW Closely Behind Lexus 9% 8%
• The X5 and 3 Series returned to the Top 10. 9% 8% X5 42%
• BMW’s aggressive product launch schedule 8% 8%
could put it back on top. The X1, i4, iX and 7 RDX 26%
7% 7%
Series will challenge the Lexus line-up.
6% 6% Model S 2%
5% 5%
3% 3% E-Class 7%
Tesla Saw the Biggest Gain 1% 2%
• The Model 3 and Model Y rebounded, 3 Series 13%
1% 2%
occupying the No. 1 and 2 spots. A month- 2% 1% -28%
Enclave
to-month subscription for a Tesla Model 3 is 0% 1%
making it accessible to more buyers. 1% 1%

Source: KBB Brand Watch Survey, Q4 2021 3

 A CLOSER LOOK: LUXURY SEGMENT CONSIDERATION
Luxury SUV consideration reached a record high in Q4, while consideration for Luxury Cars remained at an all-time low of 49%. The
approaching winter in Q4 likely influenced shoppers’ preference for the capabilities of SUVs.

QUARTERLY SEGMENT CONSIDERATION

70% 49% Luxury SUVs Reached Peak Level

• Tesla Model Y took the No. 1 spot for the first time,
dethroning Lexus RX’s 2-year run at the top. It’s the only
LUXURY SUVS LUXURY CARS domestic SUV in the Top 5.
Last Qtr. Last Year Last Qtr. Last Year • BMW X5 returned to the Top 5.
69% 69% 49% 51% • Acura RDX joined the Top 5 list.
• Buick Enclave and Cadillac XT5 lost steam and dropped
TO P 5 L UX URY S UV s TO P 5 L UX URY CARS off the Top 5 list.

#
1 Model Y #
1 Model 3 Luxury Cars Bottomed Out
• Despite higher than industry level inventory, Luxury Cars
#
2 RX #
2 E-Class took a back seat to ever-popular SUVs.
#3
MDX #3
Model S • Tesla Model 3 held the No. 1 spot for the 4th consecutive
quarter, which was in line with the lift in EV consideration.
#
3 X5 #
4 3 Series • Mercedes-Benz E-Class and Tesla Model S swapped
#
5 RDX #
5 5 Series spots. The all-new Mercedes C-Class and the
re-emergence of the Acura Integra may breathe life into
the Luxury Car segment.
▲▼ indicate significant % change Q/Q
Last Qtr. = Q3-21, Last Year = Q4-20
Interpretation Example: 70% of luxury shoppers consider luxury SUVs

Source: KBB Brand Watch Survey, Q4 2021 4

 TOP 10 CONSIDERED ELECTRIFIED MODELS & OVERALL CONSIDERATION
Consideration of electrified vehicles grew rapidly, reaching an all-time high in Q4 2021. Tesla Model 3 and Model Y were the only luxury brands in the
Top 10. The Volkswagen ID.4, Ford F-150 Lightning and F-150 Hybrid secured spots on the Top 10 list for the first time. EV consideration will continue
to accelerate as new and redesigned entrants hit showrooms, like BMW iX and i4, Mercedes-Benz EQB and EQE, Cadillac Lyriq and more.

QUARTERLY TOP CONSIDERED ELECTRIFIED MODELS

Overall Quarterly Consideration Trend

* New to Top 10
#1 #2 #3 #4 #5 Electric/hybrid/fuel cell Electric/fuel cell only Hybrid only
35%

30% 28%

25%
RAV4 Hybrid Model 3 Model Y CR-V Hybrid Maverick Hybrid
Compact SUV Entry Luxury Car Luxury SUV Compact SUV Compact Truck 20%
20%

15% 13%
#6 #7 #8 #9 #10
10%

5%

Mustang Mach-E Highlander Hybrid ID.4* F-150 Lightning* F-150 Hybrid*

0%
Midsize SUV Midsize SUV Compact SUV Fullsize Truck Fullsize Truck

4 - -Q4
20 1

20 2

20 2

20 3

20 4

20 1

20 2

20 3

20 4

20 1

20 2

20 3

4
20 1
Q

Q
Q
18

18

18

19

19

19

20

20

20

20

21

21

21

21
19
3
Q
20

20
2 0 01 8
Q
2
18
(*new models vs. Q3 2021)

Source: KBB Brand Watch Survey, Q4 2021 5

 TOP 10 CONSIDERED MODELS: LUXURY SHOPPERS
The majority of the most considered luxury models were SUVs. Tesla had the most models. Acura and BMW each had 2 models.

TOP 10 MODELS

* New to Top 10 TOP 10 IN Q4-21

#1 #2 #3 #4 #5
BMW Made a Comeback
• The X5 and 3 Series both
rejoined the Top 10 list in
MODEL 3 MODEL Y RX MDX X5* Q4. However, the X3
dropped off.
Entry Luxury Luxury Compact Luxury Midsize Luxury Midsize Luxury Midsize
H/P/E Car H/P/E SUV SUV SUV SUV

#6 #7 #7 #9 #10

RDX Model S E-Class 3 Series* Enclave

Luxury Compact Executive Luxury Executive Luxury Entry Luxury Luxury Midsize
SUV H/P/E Car Car Car SUV

(*new models vs. Q3 2021)

Source: KBB Brand Watch Survey, Q4 2021 6

 FACTORS DRIVING LUXURY CONSIDERATION
Affordability has become less important to luxury shoppers over time, while most other factors have gained in importance.

RANK TOP RANKED

Q4-16 Q4-21 FACTOR IMPORTANCE BRAND #2 #3

1 1 Durability/Reliability 80% Acura Overtook Lexus for Top Honors in

Durability/Reliability
2 2 Safety 73%▲ • After 7+ years, Lexus ranked second for
3 3 Driving Comfort 69%▲
Durability/Reliability. Acura took the lead.
• Acura was No. 2 for Reputation, which is correlated to
4 4 Driving Performance 63%▲ Durability/Reliability, Affordability and Ruggedness,
7 5 Interior Layout 50%▲
influenced by the sportiness of vehicles like the RDX
PMC Edition.
6 6 Reputation 48%

9 7 Technology 47%▲ Genesis Thrived

• Genesis ranked No. 1 for Interior Layout for the first
8 8 Exterior Styling 44%▲ time and maintained the No. 1 spot in Affordability.
5 9 Affordability 43%▼ • It was No. 2 for Exterior Styling and No. 3 for
Durability/Reliability, Driving Comfort and Technology.
10 10 Fuel Efficiency 42%▲ • Genesis GV70 won the 2022 Motor Trend SUV of the
Year. IIHS declared Genesis a 2021 Top Safety Pick.
11 11 Ruggedness 21%

12 12 Prestige/Sophistication 18%

▲▼ indicate significant % change from Q4-16 vs. Q4-21

Source: KBB Brand Watch Survey, Q4 2021 7

 WHAT IS BRAND WATCHTM ?
Brand Watch, a shopper perception study, reveals trends in vehicle consideration
among new car consumers and factors that influence purchase decisions.

Brand Level Study Model Level Study

135,000+ interviews since 2007 BRAND WATCHTM 84,000+ interviews since 2012

Captures brand and model Tracks 12 factors important Respondents are in-market
consideration & familiarity to shoppers across all for a new vehicle and
among new car shoppers segments and models recruited from KBB.com

WHAT CAN BRAND WATCHTM DO?

Support the Cox Auto sales team and clients in strategizing
vehicle launch plans and key messaging

What is important to How brands and models perform on

Measure OEM brand equity
consumers when shopping factors most important to shoppers
for a new vehicle within and across segments

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BRAND WATCH TOPLINE
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