Supply vs Demand, BYD’s 10 Millionth Vehicle, Record Thanksgiving Travel

Paul J Daly  0:00  
Good morning, everybody. November 19, we are here. Live in a coffee shop in Petersburg, Virginia, Virginia, which happens to be where CMA automotive started. We're shooting a more than cars episode, but first we have a little news to talk about today. We got the bounce. We got the bounce. We got the bounce. We can't even hear

Kyle Mountsier  0:18  
we got no ears in.

Paul J Daly  0:19  
I know it's the timing, folks. I heard that when you sign up for our new AI email newsletter automotive industry.ai, that there is a GIF of you and me dancing that was generated in AI, shooting confetti out of our fingers. It's unbelievable.

Kyle Mountsier  0:33  
Yeah, it's this is the world we're living in, fam, this is the world we're living

Paul J Daly  0:38  
in. Oh, well, look, if you want to see that gif, which I think we need to post on social after a few more days? Yeah, but go to auto industry.ai. It's our new AI newsletter, put together by the ASOTU team. We have a bunch of great contributors, like Steve Greenfield, Todd Caputo, who's that? Hendrix, Ben Hadley, Kyle and I are writing articles for this publication, helping you stay ahead with all this AI stuff that's flying around. If you don't know how to make sense of it, check out the newsletter. We'll baby step you into it. And if you've been a user for a while, we're also going to give you some stuff that might take you the next level. So we're trying to put a little

Kyle Mountsier  1:12  
something I love about it most is where every week, right now, it's a weekly email, and then there's articles written all week, but there's, there's a prompt of the week, and it's a really, really unique way to think about prompting Gemini or cod or GPT to get you something, and like, thinking about the way that you do that, because we've, we've used it so much, kind of you, there's prompt engineering, yeah, right, yeah. Because

Paul J Daly  1:33  
I think a lot of people are, they're often, like, disappointed with their results. Like, that's okay, it's not that good, right? That's the biggest mistake to like, do just put like, simple questions in, and then you're like, it's not that great. We're going to help you figure out how to get great results from GPT. But first we have to talk about a few things we get in a few things. We have a we have a webinar coming up on Friday,

Kyle Mountsier  1:54  
on Friday with our friends at car cutter. Daniel, he's G, he's a G, he's a G. Brian free, also, the former VP of Digital Marketing and AutoNation, will be with us just talking about, like, how to get Mark success out of your digital merchandising. So

Paul J Daly  2:09  
somebody who's done done something before and just to true of auto nation, have you? Yeah. Let's get into some news. So the October cars Commerce Industry Insights report. This is kind of a new report, right? It's been out for like, a few times now I now, really great data, because it's first party data revealing that the new vehicle supply is way up, while demand has seen only a small increase. New Car demand is up only 2% while new vehicle supply is up a staggering 26.4% year over year. New cars. New Car days live on the site is also up 37% Let's go. Let's go. Point by point. Yeah.

Kyle Mountsier  2:47  
I mean, here's, here's. The first thing that happened was we had low inventory, and all the industry said, I don't think it's coming back. And still, Anna said, Hold my beer. We didn't say that. We never said that. No, I mean, that's a stark difference. I was surprised at the variance between the demand at 2% and the vehicle supply, because we've been hearing a lot, just like anecdotally, that there's still a lot of demand in the market that's left over, but it seems that demand is moving to the used car side of things, and, you know, to have inventory, you know, days of days, days on market be up 37% just means holding costs are a bit more floor. Playing costs are a bit more, you know, we're, we've, we've already seen reports in q3 of extremely high incentives and rebates across manufacturers. So that's, I don't think, something that's going to slow down anytime soon, no, outside of the fact that you are seeing some of these manufacturers put pauses on some of their plants to try and get a hold of the inventory situation.

Paul J Daly  3:49  
Some other points year over year, new EV supply is up. Get this, 35% which makes the production shutdowns that we're hearing about make a lot of sense. Used Car inventory below $20,000 is the only price category growing year over year below. Yeah, still below 2021 but it's good to see that sub 20,000 because affordability has been the conversation. It's gonna people are saying, is that even ever gonna come back? Well, apparently, according to cars data on their site, cars Commerce Data, it

Kyle Mountsier  4:19  
is, yeah, and I remember talking to the cars team last year at nada, actually, and they said that it was a growing search volume, right? So we're starting to see the vehicles meet the search intent.

Paul J Daly  4:31  
That's good. Last point, used EVs. I mean, there's a lot more points in this. We pulled out some highlights. Used EVs. Get this. Used EVs, five and a half times more searches than new EVs on the platform. The average list price of a used EV is down nine over 9% year over year, and searches are up 36% so everyone's looking

Kyle Mountsier  4:52  
for used EVs. Get yourself some used TVs on your lot. That's really, really surprising, right. There

Paul J Daly  4:56  
it is, speaking of EVs. Segue time. Yeah, we nail that. Let's go BYD, Chinese automaker is marking my major milestone as the first automaker to produce get this 10 million new energy vehicles. If you remember, new energy vehicles are plug in hybrids, full EVs. The EV leaders riding a wave of growth, expanding globally. Key points including they've reached 10 million. Nevs just three years after producing their first million three years ago, they're like, we've made 1 million now they're all the way up to 10. Not 10 million a year, but 10 million aggregate, right? October sales, they sold over half a million in October, marking the fifth consecutive record month. Basically, they're gaining on all the global giants like JSON and Honda, they're actually closing in on Ford at this point. Yes, and they are expanding globally. New plants in Thailand, hungry Brazil, Pakistan, Turkey, Mexico, their EVP, hey. Z says the company is scaling fast, hiring 200,000 employees recently to meet the surge of demand. Can

Kyle Mountsier  6:00  
you imagine hiring 200,000 people? That just blew my mind. That's

Paul J Daly  6:04  
a lot of people globally. Globally. Try that HR department. No,

Kyle Mountsier  6:09  
I'm out. You know, at MRC, I was there and Mike Stanton was there, and actually, three weeks ago we were with him here in Virginia at the CMA is 100th anniversary, and he was saying, Hey, I'm about to go ahead to China. I can't wait to tell you the results of what's going on. And in his talk, he told you the results of what's going on, yeah. And then in his talk and everything. And then afterwards, he was just like, hey, look, these Chinese manufacturers. They're no joke. And not just the manufacturing, it's the actual vehicle quality is standing head and shoulders above manufacturing

Paul J Daly  6:44  
across further price point, right? The price get a lot more. $15,000

Kyle Mountsier  6:47  
car feels and looks like a $30,000 car. The $30,000 car feels and looks like an $80,000 car. Wow. He said it is premium, luxury, the technology available in these things because the government subsidies there and the incentive the purchase, is just driving this, and we're seeing the results with BYD, not just, you know, in China, but also internationally at this point.

Paul J Daly  7:09  
Alright, so, I mean, look, it's a conversation everybody's having. I'm sure we'll be having a lot more nada, just something that to pay attention to. We're all paying attention. Apparently Mike's paying attention to just great to have him out there. At least charge. Thank you for doing that. Last, but not least. This

Kyle Mountsier  7:24  
is a little fun one, but it looks like turkeys won't be the only ones trying to get on a flight this holiday season and get out of dodge. Thanksgiving weekend is set to be one of the busiest travel weekends in history. Feel like they say that every year, every single year, yeah, something like that, except for like, one year, I don't know, few years ago, remember that year, triple A predicts that 79 point 9 million travelers, a 1.7 million increase from 2023 will be traveling 71 point 7 million will travel like our airlines anticipate a surge with 31 million passengers, projected a 2 million increase. Oh my god, last year. Obviously, all of the major airlines of saying, hey, look, we're already pacing based on ticket sales. Record passenger numbers. Stacy Barber, Vice President of triple A travel, said, Thanksgiving is the busiest holiday for travel, and this year we're expecting to set new records across the board, from driving to flying to cruising, cruising. Even everybody's getting, oh, man,

Paul J Daly  8:22  
no, thanks. I'm out on the cruise. No, just saying so, gas is cheap right now, right? 71 million people on the road, yep, right. That is a big percentage of the country. Yeah.

Kyle Mountsier  8:34  
And they said that there's a good chance actually, gas will dip over the next two weeks, getting on an average over across the country, over $3 which will be banana. Well, you mean under $3 under $3 Yeah.

Paul J Daly  8:44  
So, like, I think we're going to pray for good weather, right? And this is the part of the year where dealers and their marketing departments lean in. If you know, 71 million people are going to be on the road right this week and the beginning of next week. Service really, absolutely. It's like, how can we make sure you're ready for your road trips? Right? Maybe throw in a couple of, uh, Thanksgiving Day type perks, some food, some this, some apple pies, warm apple pie in the showroom, in the service bay. People are going to be on the road. Time to lean into it. We're on hope for good weather. And I think it's just a great time to enjoy the season where people are feeling good, they're ready to travel, and they travel places in cars. So I don't think we can lose in this one. Can't Lose all right, let's wrap it up. We're here in Petersburg, Virginia. We're shooting another episode of more than cars Season Two. We're gonna shoot another one in two weeks. Go to more than cars.tv. And check them all out. We'll see here tomorrow, you.

Transcribed by https://otter.ai

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