In this first in a series of upcoming articles on the electric vehicle (EV) market, we take a look at plans by global auto manufacturers for continued, aggressive expansion of their electric offerings as well as the technologies that are competing for dominance in the market.

April 26, 2021— In January, a survey was taken of industry economists when the seasonally adjusted annualized rate of sales (SAAR) for light-duty vehicles had been flirting with 16 million vehicles for the better part of six months. At the time, few experts forecast 2021 U.S. sales above 16 million vehicles. The sales momentum from December that carried over to January looked to stall in February due to severe winter weather. So, no one was expecting a SAAR of 17.8 million in March, a 55% increase from last year’s 11.4 million vehicles.

For anyone in the auto industry right now, the year 2020 will be remembered as the most challenging of their career. The pandemic spared no one. Manufacturers, freight companies, distributors, wholesalers, retailers, and customers all had their own cross to bear. In the end, 2020 net sales for the Hilco Parts Index (HPI) declined 1.1% compared to prior year results. That is considerably better than the 8.8% decrease suffered by the broader U.S. auto aftermarket and evidence the Big Four (Advance, AutoZone, Genuine Parts, and O’Reilly)continue to gain market share from smaller independent wholesale distributors. The Big Four are generally considered to represent a third of the marketplace.

Over my many years in law, real estate, finance and asset monetization I have been a part of numerous debates among colleagues regarding which of the vast complexities associated with starting up a large scale division or branch of a business in Mexico – particularly as an extension of a company based outside the country – is the most daunting.

January 18, 2021 – The seasonally adjusted annualized rate of sales (SAAR) for lightduty vehicles topped 16 million vehicles in December for the third month since April, when the industry slumped to a 50-year low. For the full year, light-duty vehicle sales totalled 14.6 million, a decrease of 14% from 2019.

By the middle of November, the last of the six companies comprising the Hilco Parts Index (HPI) had reported their financial results for the third quarter. The common, albeit unexpected, refrain was “We are pleased with our results for the quarter”.

October 5, 2020 – The seasonally adjusted, annualized rate of sales (SAAR) for U.S. deliveries of light-duty vehicles reached 16.4 million vehicles in the month of September. That is a much better result than most expected back in April when the industry slumped to a 50-year low of 8.7 million vehicles.

July 14, 2020 – After a 50% drop in U.S. deliveries of light vehicles, the seasonally adjusted, annualized rate of sales (SAAR) for April had fallen to 8.6 million vehicles. Anxious to generate some cash flow, automakers offered generous incentives to encourage nervous would-be buyers to get back in the market. After all but disappearing in March, zero percent finance offers represented a record high 25.8% of all new financed purchases in the month of May according to Edmunds.com.

For the first time, in a very long time, the trailing twelve-month (TTM) net sales for the Hilco Parts Index (HPI) decreased from year-ago levels.