Will Factory-Installed Navigation Become a Thing of the Past?

The Future of Factory-Installed Navigation

Increased use of cell phones for navigation services would lead many to believe factory-installed, or on-board, navigation is heading down the same path as cassette and CD players. In fact, the death of on-board navigation is far from reality.

Consumer Demand Secures the Near-Term Future of Navigation

According to AutoPacific’s Future Attribute Demand Study, 60% of new vehicle buyers want factory-installed navigation on their next vehicle. While down slightly from previous years, feature demand remains strong and ranks 3rd overall out of over 100 features surveyed.

AutoPacific Future Attribute Demand Study: 2016-2019

Despite lower demand from younger generations, interest in this feature remains strong at greater than 50% from even the youngest buyers. As demand increases with age, expect factory-installed navigation to have a presence for years to come.

AutoPacific 2019 Future Attribute Demand Study

Autonomy Secures the Long-Term Future of On-Board Navigation

Autonomous drive technology continues to generate buzz in the industry, and automakers and suppliers are racing to make it ready for prime time. Among the many components needed to make fully autonomous driving a reality is extremely accurate GPS map data. At current levels of technology, this map data must be on board the vehicle, rather than sourced from the driver’s phone. Future autonomous drive implementations that can autonomously get a vehicle from point A to point B will require on-board GPS maps to determine the best route and drive itself to the destination.

Younger Generations More Likely to Prefer a Self-Driving Vehicle

1/2 of Generation Y and Z New Car Buyers Would Prefer a Self-Driving Vehicle

When asked if they “would prefer to own a vehicle that, on demand, can drive itself,” 28% of new vehicle buyers overall agree with the statement (top 2 box). Generation Z new vehicle owners are the most likely to agree (50%), followed by Generation Y (49%).

Source: AutoPacific 2019 New Vehicle Satisfaction Study

Connectivity versus Practicality

While younger generations may be more interested in autonomous vehicle technology now, their reasons likely stem from their lifelong immersion in technology and desire to remain connected, reduce commute fatigue, etc. Older generations, on the other hand, have a longer road to gaining comfort with autonomy, but ironically, may be the first to experience the benefits of full autonomy. AutoPacific believes it is likely that small geofenced areas, like retirement communities and hospital campuses, will be among the first places to launch fleets of autonomous vehicles, introducing seniors the benefits of a fully autonomous transmission before Gen Z and Gen Y.

Night Vision One Possible Solution to Reduce Pedestrian Fatalities

Pedestrian Deaths Increasing in the United States

In a February 2020 report from the Governor’s Highway Safety Association, the number of pedestrian fatalities in the US is predicted to total 6,590 for 2019 - an increase of more than 50% over the past decade and accounting for 17% of all traffic deaths. While there are several factors at play, the number of nighttime pedestrian fatalities has increased by 67% over the last 10 years (compared to 16% daytime pedestrian fatalities).

Night Vision is One Possible Solution

Source: AutoPacific 2019 New Vehicle Satisfaction Study

Source: AutoPacific 2019 New Vehicle Satisfaction Study

A Night Vision System allows drivers to see what (or who) is down the road -- even on the darkest nights.

According to AutoPacific’s 2019 New Vehicle Satisfaction Study, 36% of new vehicle owners want more safety features than they currently have in their vehicle. When asked about specific safety features wanted on their next new vehicle, Night Vision System ranks 9th among the 28 features surveyed, with 33% overall demand.

Night Vision System demand is strongest from those intending to purchase an SUV, women and new car buyers over age 50.

Can Anyone but Tesla Survive Until EV Demand Increases?

Can anyone but Tesla survive until consumer demand for EVs increases?

In follow-up to last week’s AutoPacific Insights, which looked at consumer demand for EVs and sales per nameplate, we take a closer look at what’s left after Tesla takes the lion’s share of sales.

Source: AutoPacific Q120 Light Vehicle Sales Forecast

Tesla currently holds 77% of the BEV market with 3 nameplates. AutoPacific’s 2025 forecast has Tesla holding 40% of an increased market with 5 nameplates. More for everyone else, right? Sort of.

Of the 85 nameplates that make up the 2025 BEV market, only 13 of them are forecast for volumes greater than 10k units, not including Tesla. Remove those 13 from the equation, and you’re left with 32% of the market to split between 67 nameplates. Simple math tells us that’s 3,600 units per nameplate.

Source: AutoPacific Q120 Light Vehicle Sales Forecast

Tesla is by far the leader in BEV sales, and is expected to remain the leader for years to come. Look for new entries from several automakers, including Rivian, Ford, Volkswagen and Chevrolet, to sell greater than 10,000 units.

Interior/Exterior Welcome Lighting is a "Welcome" Enhancement

Both exciting and practical, interior/exterior welcome lighting automatically illuminates as the driver approaches the vehicle.

Slightly over 40% of respondents would consider welcome lighting for their vehicles. Luxury brands and their luxury cars and SUVs/XSUVs are naturals for this feature. Additionally, top-of-the-line trims of mainstream brands would find this as an enhancement to up-level packages.