Arthur D. Little - Global Automotive Market Report September 2021

Global Automotive Report
Analysis of New Car Registrations
September 2021

2
Global Market Overview
Executive Summary
* Δ% in Volume June 2021 YTD / June 2019 YTD among markets with more than 490.000 New Car Registrations;
South Korea: there has been a boost of vehicle sales in the
market in 2020 due to post-consumption tax relief
introduced by the government (+9,9% in Q3 2020YTD vs.
Q3 2019YTD and -9,5% in in Q3 2021YTD vs. Q3 2020
YTD). Overall, market sales in 2021 managed to reach and
slightly increase pre-pandemic level (-0,5% in Q3 2021YTD
vs. Q3 2019YTD)
Top 3 Markets*
India: the market reported a significant drop in 2020 (-28,9% in Q3 2020
YTD vs. Q3 2019YTD) but managed to cover quickly the gap in 2021
(+44,3% in Q3 2021YTD vs. Q3 2020YTD).The overall result of "downs"
and "ups" brought the country to reach and slightly increase pre-pandemic
level (+2,6% in Q3 2021YTD vs. Q3 2019YTD)
Russia: the market reported a significant drop in 2020
(-13,1% in Q3 2020YTD vs. Q3 2019YTD) but
managed to cover the gap in 2021 (+14,4% in Q3 2021
YTD vs. Q3 2020YTD).The overall result of "downs"
and "ups" brought Russia to maintain pre-pandemic
level (-0,6% in Q3 2021YTD vs. Q3 2019YTD)
2,6%
-0,5%
-0,6%
South Korea
Russia
India
◼ Starting from March 2020 sales have been heavily hit by Covid-19 outbreak. To make
figures comparable this edition of Automotive Report compares 2021 and 2019 data

3
Analysis of New Car Registrations in Europe and Italy
* EU (27 Countries) + EFTA Countries (Iceland, Norway, Switzerland) + UK; ** Δ% September 2021 / September 2019
Executive Summary
◼ Areas: North-East -28,3%, North-West -28,3%, Centre -23,3%, South -20,2% and Islands
-27,3%, in volume in September 2021 compared to September 2019
◼ Customer segments: Retail -13,2%, Fleet -25,9% and Business -36,9% in volume in
September 2021YTD compared to September 2019YTD
◼ Brands: among theTop 15 by volume, highest rate for Toyota -2,7%,Audi -4,3% and Hyundai
-5,8% in September 2021YTD compared to September 2019YTD
◼ Premium brands: among theTop 15 by volume Audi -4,3%, BMW -6,6% and Mercedes-Benz
-18,2% in volume in September 2021YTD compared to September 2019YTD
◼ Top 3 Countries by growth of new registrations: Iceland +63,6% Norway +61,3% and
Romania +47,9% in volume in September 2021 compared to September 2019
◼ Top 3 Countries by market share: Germany 22,0% (-0,6 p.p.), UK 14,4% (-1,0 p.p.) and
France 13,8% (+0,2 p.p.) in September 2021YTD compared to September 2019YTD
◼ Brands: among theTop 15 by volume, smallest decrease for Kia -0,4%,Toyota -1,4%, and
Hyundai -10,4% in September 2021YTD compared to September 2019YTD
◼ Premium brands: BMW -13,0%, Audi -17,1% and Mercedes-Benz -27,7% in volume in
September 2021YTD compared to September 2019YTD
Europe*
Italy
-24,3%**
-26,2%**
◼ Starting from March 2020 sales have been heavily hit by Covid-19 outbreak. To make
figures comparable this edition of Automotive Report compares 2021 and 2019 data

4
Agenda
1 Global Market Overview
2 Europe
3 Italy
4 Focus on Supply shortage impact on Automotive Market
5 New Car Models Launches in Italy

5
-4,0%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
-25,0% -20,0% -15,0% -10,0% -5,0% 0,0% 5,0%
Global Overview – Top 10 Markets and Europe*
Source: Arthur D. Little Analysis on IHS Global Insight Data and on market data
Highlights
2021YTD vs. 2019YTD, DeltaVolume vs. Delta Market Share, Market Size
Bubble Size – New Car
Registrations in 2021 YTD
∆ % Volume 21 vs. 19
∆ % Market Share
21/19
* EU (27 Countries) + EFTA Countries (Iceland, Norway, Switzerland) + UK

6
Top 5 Brands analysis in major economies
Source: Arthur D. Little Analysis on IHS Global Insight and on market data
Italy and Europe* Major Economies*
5
2
1
4
3
M.S. % CML
(Top 5)
Total market
2021 YTD
Δ% 21/19 Top5
Brands
41%
17%
10%
8%
6%
2.327.108
**
-2,8%
83%
India
24%
13%
11%
9%
7%
1.194.653
**
1,1%
63%
Russia
EU+EFTA+UK
11%
6%
6%
6%
6%
972.723
-1,2%
Italy
15%
9%
6%
6%
6%
42%
1.165.491
-0,4%
* Period January-March 2021; ** IHS Global Insight estimated value
22%
16%
12%
10%
9%
68%
1.446.876
**
4,1%
Brazil
11%
9%
7%
5%
5%
14.561.282
**
-2,9%
China
34%
14%
14%
11%
10%
2.977.458
**
84%
Japan
14%
10%
10%
9%
6%
11.564.414
**
-2,7%
US
1,2%
35%
◼ Covid-19 had different impact on Top 5 MS in major economies: In Italy, EU28&EFTA & China
it decreased slightly; in India & USA Top 5 lost some MS; in Japan, Brazil & Russia it gained MS
37% 50%

7
Agenda
2 Europe
2.1 Market Overview
2.2 New Car Registrations by Brand
3 Italy

8
Top 10 European Markets* – September 2021 vs September 2019
Europe – Market Overview
Source: ACEA, Arthur D. Little Analysis, Sweden Transport Analysis Agency
EU New Car Registrations
972.723
1.285.545
2021 2019
-24,3%
##
#°
##
Ranking on September 2021 data
New Car Registrations in September 2021
Δ% September 2021 / September 2019
-18,9
10°
19.648
-6,3
6°
33.085
2°
196.972
-26,2
4°
105.175
-27,0
5°
59.641
-37,3
1°
215.312
-19,5
During the September the EU passenger car market continued to suffer mainly due to the "shortage" of raw materials
that is slowing down the production and therefore cars delivery (OEM supply chain has luck of stocks and production
rhythm is slowing for all brands). The increase has been registered only for 8 out of 30 countries (Norway, Ireland,
Romania, Greece, Slovakia, Estonia, Iceland and Cyprus) and decrease for 22 countries (highest decline for Lithuania -
49,1% in September 2021 vs. 2019)
-25,7
7°
26.554
-34,6
8°
24.663
◼ The European market (EU+UK+EFTA) lost
about 1/4 of registrations in September 2021
with 972.723 cars compared to 1.285.545 in
the same period of 2019, as a result of the
negative impacts of restrictions from Covid-19
9°
22.634
-15,4
-22,8
3°
133.830

9
In the first 9 months of 2021 European PC registrations (9.161.918 units in total) decreased by -24,4% compared to 2019YTD. All
countries have decreased except for Norway (that have increased by +16,5 respectively from September 21/19YTD)
Top 10 European Markets* – September 2021YTD
Source: ACEA, Arthur D. Little Analysis
Europe – Market Overview
Highlights Market share
# Country
September
2021 YTD
∆ Vs 2019
1 Germany 22,0% -0,6%
2 UK 14,4% -1,0%
3 France 13,8% 0,2%
4 Italy 12,7% 0,6%
5 Spain 7,1% -0,9%
6 Poland 3,8% 0,4%
7 Belgium 3,4% -0,2%
8 Netherlands 2,6% -0,2%
9 Sweden 2,5% 0,5%
10 Austria 2,1% -0,1%
-26,4
-29,3
-23,2
-20,6
-32,9
-15,5
-28,6
-28,7
-6,2
-26,5
Market Share
∆ % Volume
September 21/19
20%
New Car Registrations September 2021
YTD
10%
-60
+30
0
-30

10
Top 15 – September 2021YTD
Europe – New Car Registrations by Brand
Source: ACEA, Arthur D. Little Analysis
∆ M.S.
21/19
0,01 0,30 0,00 0,15 -0,17 -0,04 0,10 0,08 -0,24 0,32 0,18 -0,26 -0,03 -0,07 0,11
Vol.’21 1.028.648 562.824 558.408 533.109 506.340 481.795 481.035 473.731 422.887 387.716 383.429 382.944 378.449 350.979 332.576 9.161.918
M.S.’21 11,2% 6,1% 6,1% 5,8% 5,5% 5,3% 5,3% 5,2% 4,6% 4,2% 4,2% 4,2% 4,1% 3,8% 3,6%
-23,8
-1,4
-24,4
-13,0
-37,3
-27,7
-17,1 -18,4
-42,4
-0,4
-10,4
-43,9
-26,7
-29,8
-16,3
-24,4
∆ %
21/19
Tot.**
*
* Opel includes Vauxhall New Car Registrations; ** EU (27 Countries) + EFTA Countries (Iceland, Norway, Switzerland) + UK

11
Agenda
3 Europe
3 Italy
3.1 Market Overview
3.2 Market Highlights
3.3 New Car Registrations by Brand
3.4 New Car Registrations by Group
3.5 New Car Registrations by FuelType

12
Italian Market –Variation of New Car Registrations 2021 vs 2019
Italy – Market Overview
Source: UNRAE, Arthur D. Little Analysis ∆’20/’19 ∆’21/’19
Italian car market continues the year with a double-digit decline even if we compare it to 2019.The "shortage" of raw materials is
slowing down the production and therefore cars delivery (OEM supply chain has luck of stocks and production rhythm is slowing
for all brands). Moreover, the "slowdown" of state incentives has furtherly slowed the demand. In September 2021, 105.175 new
cars were registered, -26,2% vs. 142.532 of September 2019 (the comparison with September 2020, that has seen 156.132 new car
sales brings even to worth result). All segments in September has lost in volume compared to 2019: Private segment was
recovering better than other segments (-13,2%), while Fleet registered -25,9% and Business -36,9%. Main optimistic numbers are
related to EV sales (+575,6% in September 2021 vs. 2019 with 8.492 registered units this month) and hybrid sales (+249,6% or
38.783 units registered more than in September 2019). More than 302.746 cars were lost in the first 9 months of 2021, with
1.468.237 units registered, down 20,6% on 2019.
September 2021
-23,1%
October
-27,9%
March April May July August September November
-5,9%
-18,9%
-8,8%
June
-13,3%
-19,9%
-85,4%
-12,7%
-97,6%
-17,1%
-27,8% -27,3%
-0,4%
9,5%
-0,2%
-8,3%
-14,9%
-26,2%
January
-49,6%
February December
-11,0%

13
66,5
2,0
-13,0
-28,9
-31,5
-32,2
-33,1
-38,5
-43,7
-48,2
Italian Market – September 2021 vs September 2019
Source: UNRAE, Arthur D. Little Analysis
Italy – Market Overview
2015
2014
1.165.491
1.468.237
-20,6%
2019
-28,3%
North-West
32.113
Islands
5.976
-28,3%
North-East
29.990
-23,3%
Centre
24.222
South
12.875
##
aa
##
Region
New Car Registrations in September 2021
Growth of the Top 10
brands by volumes
6
-27,3%
-20,2%
2021

14
Diesel
23,5%
Petrol
30,5%
LPG 7,0%
CNG* 2,2%
EV*
36,7%
Other
46,0%
Italian Market – September 2021YTD vs September 2019YTD
Italy – Market Highlights
Analysis by “Customer Segment” Analysis by “Fuel Type”
Analysis by “Geographical Area” Analysis by “Car Segment”
726.980
272.608
165.903
837.538
367.658
263.041
Retail Fleet Business
-13,2% -25,9% -36,9%
∆’21/’19
347.549 365.010
254.815
132.676
65.441
446.738
496.392
298.889
149.281
76.937
North-West North-East Islands
South
Centre
195.252
1.165.491
447.915
343.959
152.956 21.607 3.802
A B C D E Total
F
-18,6% -14,0% -31,5% -12,4% -18,5% -13,5%
-22,2% -26,5% -14,7% -11,1% -14,9%
2021
2019
∆’21/’19 ∆’21/’19
2021
2019
∆% Volume September 2021 / September
2019YTD)
* CNG: Compressed Natural Gas (Methane and Ethanol); EV: Electric Vehicle (Hybrid and Electric)
1.165.491
1.468.237
2019
2021
-20,6
-54,8
-44,3
+376,2
-22,8
-0,8

15
Italian Market – September 2021 vs September 2019
“Fuel type” mix evolution
HEV - Hybrid Electric Vehicle; PHEV – Plug-in hybrid electric vehicle; BEV – Battery electric vehicle
2019(YTD)
44,6%
25,0%
36,6%
19,1%
7,7%
9,4%
8,6%
44,5%
2,5%
Sep
2021
2,0%
Sep
2019
100%
Petrol HEV+PHEV+BEV
CNG
Diesel
LPG
◼ Over the last two years a progressive evolution of fuel type
mix in Italian market has been observed
◼ In particular, respect 2019, in September 2021 Petrol and Diesel
had a relevant lost in terms of market share (-19.6 p.p and
-17.5 p.p respectively) and alternative fuel types, have
increased their market share from 8,6% up to 44,5%
◼ Still, these increase was due mainly to mild hybrid vehicles
(HEV), that are actually not "real" electric vehicles, while the
contribute of PHEV and BEV was less important
HEV
PHEV
BEV
MS
September ‘19
7,2%
0,6%
0,9%
MS
September ‘21
31,3%
5,2%
8,0%
MS Delta
September '21 vs. '19
+24,1 p.p
+4,6 p.p
+7,1 p.p
-17,5%
-19,6%
+35,8%

16
Italian Market – Distribution channels – September 2021YTD vs
September 2019YTD
2019 (YTD)
*) Self-registrations related to LTR&STR use made by Dealers and OEMs;
**) Including Dealers and OEMs self-registrations not related to LTR & STR
Retail
Private Customers
-25,9%
MS:
23,4%
11,5
201,6
212,7
129,5
25,5
2019
59,5
2021
367,7
272,6
-5,2%
-13,2%
MS:
62,4%
-36,9%
MS:
14,2%
-54,0%
-54,9%
190,4
2019
72,6
63,4
102,5
2021
263,0
165,9
-12,7%
837,5
2019 2021
727,0
-13,2%
-46,2%
Private Customers STR
LTR Captive LTR&STR* Companies Captive self-registrations
◼ Respect September 2019YTD, in 2021,
Retail segment of the Italian market was
recovering better than other segments
(-110.559 units sold less) and has increased
its Market ShareYTD (56.0% in September
2019 vs. 62.4% in September 2021)
◼ All of Fleet subsegments decreased in
September 2021 vs. 2019YTD due to
COVID-19 outbreak: STR segment (-54,0%
or 69.911 units sold less vs. September
2019).The drop of LTR segment was much
less relevant (-5,2% or 11.125 units sold less
vs. September 2019)
◼ The decrease of the Business segment
registrations in September 2021YTD vs.
September 2019YTD was related both to the
reduction of Captive self-registrations (-46,2%
or 87.938 units less sold) and Company
registrations (-12,7% or 9.199 units less sold)
Fleet
LTR, STR and Captive LTR&STR*
Business
Company registrations**
Market Share YTD increase / decrease
September 2021 / September 2019 (YTD)

17
New Car Registrations by Brand – September 2021YTD (1/3)
Italy – New Car Registrations by Brand
177.671
102.157
69.738 67.929 66.559 58.208 53.837 51.851 46.443 45.504 45.492 40.779 37.654 35.248 34.414
-20,4 -24,3
-17,6
-26,5
-2,7
-33,4
-20,9 -19,5
-4,3
-31,5
-44,4
-6,6
-18,2
-22,8
-5,8
Volume
∆Volume
21/19 %
∆ M.S.
21/19 %
Market
Share %
0,03 -0,42 0,22 -0,46 1,05 -0,96 -0,02 0,06 0,67 -0,62 -1,67 0,53 0,09 -0,09 0,46
15,24 8,77 5,98 5,83 5,71 4,99 4,62 4,45 3,98 3,90 3,90 3,50 3,23 3,02 2,95

18
33.918 31.938
21.414 21.057
17.554
15.122 13.563
9.821 9.768 8.610
5.503 5.096 4.882 4.836 4.500
-5,1
13,1 3,5
-37,4
-14,3 -2,0 -16,7 -22,3
9,0
-56,8
68,4
-74,5
159,3
-26,8
Volume
∆Volume
21/19 %
∆ M.S.
21/19 %
Market
Share %
0,48 0,82 0,43 -0,48 0,11 0,25 0,05 -0,02 0,23 -0,62 0,25 -0,92 0,29 -0,04 0,39
2,91 2,74 1,84 1,81 1,51 1,30 1,16 0,84 0,84 0,74 0,47 0,44 0,42 0,41 0,39

19
4.114
3.513 3.510 3.468 3.229
1.707
1.253
701 658 656 470 277 252 38
-16,5 -18,4
17,9
-45,6 -46,2
-8,6
-24,1 -12,6
-65,0
11,1
-8,0
-20,8
1.238,8
Volume
∆Volume
21/19 %
∆ M.S.
21/19 %
Market
Share %
0,01 0,01 0,10 -0,13 -0,13 0,02 -0,01 0,00 0,00 0,00 0,00 0,00 0,00 0,00
0,35 0,30 0,30 0,30 0,28 0,15 0,11 0,06 0,06 0,06 0,04 0,02 0,02 0,00

20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
New Car Registrations by Group – Top 15 – September 2021YTD
Italy – New Car Registrations by Group
38,4
16,5
8,9
6,0
5,9
5,8
4,7
3,7
2,7
1,8
1,3
1,1
0,8
0,5
0,4
Top 5: 75,6%
Top 10: 94,4%
-5,5%
31,8%
-14,5%
-3,6%
-35,2%
-32,6%
-26,5%
-9,3%
13,1%
-37,9%
-2,0%
-30,1%
9,0%
68,4%
159,3%
447.210
192.320
103.712
70.072
68.332
67.929
54.342
42.750
31.938
21.057
15.122
13.289
9.768
5.503
4.882
Stellantis
Volkswagen
Renault
Toyota
Hyundai Kia
Ford
BMW
Daimler
Suzuki
Nissan
Volvo
JLR
Mazda
DR Motor
Tesla
Market Share
(%)
DeltaVolume
‘21 vs ‘19
Volume
Group Brand

21
New Car Registrations by FuelType – Top 10 – Petrol and Diesel
Italy – New Car Registrations by Fuel Type








































Diesel
Petrol
September 2021 2021YTD
 Ranking variation compared to previous period
2.226
1.511
1.192
1.095
1.079
1.019
869
858
841
835
19.222
18.752
16.482
15.815
15.709
12.987
12.108
11.780
10.603
10.303
1.292
1.225
821
742
707
685
662
620
618
602
COMPASS
RENEGADE
500X
DUSTER
STELVIO
500L
3008
TIPO
2008
T-ROC
T-CROSS
C3
CORSA
T-ROC
PANDA
208
AYGO
500X
RENEGADE
POLO
500X
RENEGADE
3008
COMPASS
TIGUAN
TIPO
2008
Q3
SERIE 1
T-ROC
16.388
13.776
12.879
11.741
9.835
9.202
9.123
7.865
7.226
7.042
T-CROSS
C3
PICANTO
T-ROC
I10
POLO
ECOSPORT
AYGO
CORSA
208

22
1.990
1.864
1.135
1.057
638
422
405
399
317
305
New Car Registrations by FuelType – Top 10 – LPG and CNG




















CNG
LPG




















5.134
4.537
3.796
2.766
2.244
2.188
1.790
1.369
1.208
541
492
369
365
215
161
141
121
92
73
72
SANDERO
DUSTER
CAPTUR
CLIO
PANDA
YPSILON
SPORTAGE
STONIC
PICANTO
FIESTA
POLO
ARONA
KAMIQ
PANDA
IBIZA
UP!
GOLF
OCTAVIA
A3
SCALA
ARONA
POLO
UP!
GOLF
KAMIQ
IBIZA
PANDA
YPSILON
SCALA
OCTAVIA
16.305
13.245
9.976
8.119
6.353
4.286
3.040
2.914
2.809
2.481
SANDERO
DUSTER
CLIO
CAPTUR
PANDA
SPORTAGE
STONIC
PICANTO
YPSILON
MICRA

23
6.206
2.539
1.497
1.397
1.392
1.357
1.133
1.008
803
797
New Car Registrations by FuelType – Top 10 – Hybrid (HEV and PHEV)
(*) Hybrid Electric Vehicle (HEV), (**) Plug-in Hybrid Electric Vehicle (PHEV)










PHEV
Plug-in
Hybrid
(**)
HEV
Hybrid
(*)




















636
473
317
257
242
195
195
191
183
170
PANDA
YPSILON
YARIS
IGNIS
500
SWIFT
PUMA
TUCSON
C-HR
YARIS CROSS
PANDA
YPSILON
500
YARIS
PUMA
IGNIS
SWIFT
C-HR
TUCSON
VITARA
COMPASS
RENEGADE
XC40
CAPTUR
X1
3008
KUGA
Q3
FORMENTOR
CLASSE A
COMPASS
RENEGADE
CAPTUR
Q3
KUGA
3008
X1
CLASSE A
Q5
XC40
60.836
30.037
26.126
25.564
20.112
12.124
11.250
9.647
9.019
6.568
6.733
4.730
4.246
3.822
2.801
2.455
2.108
1.635
1.627
1.468











24
New Car Registrations by FuelType – Top 10 – Pure Electric (BEV)
(*) Battery Electric Vehicle (BEV)
BEV
Pure
Electric
(*)










1.876
1.289
999
477
430
408
356
230
214
206
500
FORTWO
MODEL 3
TWINGO
ZOE
ID.3
SPRING
208
2008
CORSA
SPRING
500
MODEL 3
FORTWO
MODEL Y
ZOE
ID.3
CORSA
UP!
2008
7.859
4.557
4.432
4.114
3.145
2.559
2.497
2.135
1.682
1.579











25
New Car Registrations of Hybrid vs Pure ElectricVehicles
Source: UNRAE, Arthur D. Little Analysis;
*) HEV = Hybrid Electric Vehicles; PHEV = Plug-in Hybrid Electric Vehicles; **) BEV = Pure Electric
Italy – Focus on ElectricVehicles Market in Italy
67.631
89.784
154.868
427.520
2020
2018 2019 2021
EV RegistrationsTrend
Volume, DeltaYoY, EV Market Share September ‘21YTD
HEV, PHEV* and BEV**VehiclesTrend
Volume September ‘21YTD
Delta
YoY
36,8% 32,8% 72,5% 176,1%
M.S. 4,5% 6,1% 16,0% 36,7%
CAGR
76,8%
5,3%
2019
5,4%
89,4%
2018
8,6%
87,0%
4,4% 7,9%
11,3%
80,8%
2020
10,9%
12,3%
2021
PHEV
BEV HEV
+75,8%
+143,5%
+132,1%

26
Overview of New Car Registrations by Segment
Italy – New Car Registrations by Segment
Segments Growth in Market Share* Market Share andVolume**
+0,4%
D
«Executive»
+2,9%
B
«Supermini»
+0,0%
E
«Luxury»
-4,7%
C
«Medium»
-0,0%
F
«Ultra Luxury»
D
16,8%
A
29,5%
B
195.252
38,4%
C
13,1%
E 1,9%
F 0,3%
100,0%
Tot.
447.915
343.959
152.956
21.607
3.802
1.165.491
A
«Utility/City»
* Δ% September 2021 YTD / September 2019 YTD; ** Market Share and Volume September 2021 YTD
+1,2%

27
Segment A and Segment B –Top 10 – September 2021YTD
A
“Utility/City”
B
“Supermini”
85.673
35.948
12.125 12.108 10.660 10.291 8.121 7.339 5.173 4.561
I10 C1
PANDA 500 IGNIS AYGO UP!
PICANTO 108 FORTWO
35.301
29.673
25.940 24.736 23.134 21.739 21.352 20.957 20.658 19.458
CLIO
YPSILON CORSA
SANDERO
YARIS C3
PUMA CAPTUR 2008 T-CROSS
∆ Vol. %
21/19 YTD
∆ Vol. %
21/19 YTD
Segment A and Segment B have registered an
increase in terms of MS (+0,4 p.p and +2,9 p.p
respectively vs September 2019YTD). But in
terms of volumes, both Segment A and Segment
B, in September 2021 have decreased vs.
September 2019 (-18,6% and -14,0% respectively)
13,7% 90,7% 68,5% 18,0% 53,7% 34,7% 6,0% 47,1% 67,7% 107,9%
20,2% 88,0% 56,2% 33,0% 22,2% 26,6% 21,7% -9,8% 71,1% 22,3%

28
Segment C and Segment D – Top 10 – September 2021YTD
C
“Medium”
D
“Executive”
29.117 28.170
22.857 22.658
19.724
16.739
13.899 13.010 11.648
9.647
3008 TIPO
RENEGADE GOLF
500X DUSTER
COMPASS
T-ROC TUCSON C-HR
14.268
11.361 11.072
10.008
6.750 6.214 5.912
4.987 4.889 4.528
STELVIO
TIGUAN Q3 GLA
X1
KUGA RAV4 OCTAVIA Q5 EVOQUE
∆ Vol. %
21/19 YTD
∆ Vol. %
21/19 YTD
34,6% 26,2% 31,7% 28,6% 8,3% 22,9% 9,9% -6,3% 124,1% 9,8%
13,6% 42,8% 71,0% 52,7% 35,6% 62,9% 6,8% 7,2% 72,6% -1,2%
Medium Segment and Executive Segment had a bad
performance registering a drop (respectively -31,5%
and -12,45% compared to September 2019). But in
terms of MS onYTD basis Segment C decreased (-4,7
p.p) while Segment D increased (+1,2 p.p)

29
Segment E and Segment F – Top 10 – September 2021YTD
E
“Luxury”
F
“Ultra Luxury”
884
447
355 317
237
170 165 130 129 127
911 PANAMERA
GHIBLI TAYCAN CLASSE S F8 F-TYPE URUS SERIE 8 ROMA
∆ Vol. %
21/19 YTD
∆ Vol. %
21/19 YTD
36,1% 33,4% 11,7% 420,9% 13,6% 2,7% 13,1% -2,9% 67,4% -6,2%
-3,9% 68,7% 110,1% 521,6% 32,4% 254,2% 19,6% 9,2% 61,3% N.D.
2.558 2.462
1.734
1.521 1.514
1.335
1.169 1.155 1.115 1.038
CLASSE E Q8
X5
A6
GLE SERIE 5 GLE COUPE RANGE
SPORT
X6 CAYENNE
Both Segment E and Segment F remained stable (0.0 p.p)
in terms of market shares. Segment E has lost 18,5% (or
4.892 units sold less vs. September 2019), while the
Segment E loss was less relevant (-13,5% or 591 units
sold less vs. September 2019)

30
Agenda
2 Europe
3 Italy

31
After Covid-19 pandemic breakout, the chips and semiconductors industry
faced production shortage, with negative effects on automotive industry…
Source: Arthur D. Little analysis on press release, corporate websites
*) Arthur D. Little analysis based on experts interviews
Focus on Supply shortage impact on Automotive Market
◼ Between February/March 2020, the
whole world has been hit by the
Covid-19 pandemic
◼ To face the sanitary crisis,
governments decided to
temporarily close offices and
factories, allowing employees to
work from home, when applicable
◼ With employees working from
home, the demand for electronic
and digital devices increased
◼ As automotive industry slowed
down during pandemic, chip
producers switched to
consumer electronics clients, and
the switch-back is difficult
◼ Chips factories closed during
lockdown
◼ These three effects led to a
supply shortage
◼ Chips and semiconductors
shortage heavily impacted
the automotive industry,
with players forced to slow or
temporarily halt production
of new cars, resulting in longer
waiting times for new cars
delivery to customers globally
The automotive production slowdown in Italy resulted in significantly longer waiting time
for new vehicles’ delivery, ranging from 3 to 12 months depending on OEMs*

32
…but the semiconductor shortage is only one the elements that
contribute to the overall situation
Complex situation in the Automotive market: high demand & supply shortage
Source: Arthur D. Little analysis
High production capacity utilization
…explained by the adjustments
made by the sector during the
Covid-19 outbreak
Semiconductors shortage
…emphasized by Covid-19
outbreak
Order level is relatively high
…respect to 2020 (though
sales still did not reach 2019
levels)
Low/absent inventories
…that forces Dealers to ask
customers to wait 3-12 months
before the new car delivery
Demand
Supply
Growing commodity prices
…related to rubber, copper and
steel given by the lack of supply
on international level
Long lasting Covid-19 pandemic
Electrification needs
…in order to be
compliant with EU
directives
Government bonuses
…that push customers to
purchase a new vehicle
Customer preferences
…to be less dependant /
exposed on collective
transportation
The most severe impact

33
In fact, new cars’ prices in Italy have started to grow faster when supply
crisis has started to become more important
New Cars’ Price Increase
(Italy, Dec-2018=100)
Source: Arthur D. Little analysis on Istat data;
1
103,1
Set-
2020
102,2
Set-
2021
Giu-
2020
Dic-
2020
106,3
105,1
101,5
Mar-
2020
101,3
100,0
100,7
Giu-
2019
104,2
Giu-
2021
Mar-
2019
102,9
106,7
Mar-
2021
105,7
Dic-
2019
Dic-
2018
Set-
2019
+0,5%
+0,7%
In the months after the pandemic, in Italy new cars’ price increased at higher rates vs. before the pandemic, and the
trend is still ongoing.According to forecasts car prices might grow from +2,4% up to +5,8% in the next year in Italy
◼ Following the Covid-19 pandemic
breakout and mainly due to the
subsequent chips and
semiconductors industry crisis, the
new cars’ sales prices in Italy
experienced a steeper increase
compared to the previous periods
◼ In fact, in the 1.5 years until the
pandemic (Dec-18 vs Jun-20), new
cars’ prices rose at a 0.5% CAGR,
while in the following months, until
September 2021, it grew at faster
pace, 0.7% CAGR

34
In response to new cars’ waiting times increase, the demand for used cars
in 2021 boosted across Europe, and Used Cars prices increased
Increase in Used Cars Market prices
(%, Jan-21 – Aug-21)
2
Sources: Arthur D. Little analysis on Autoscout data
+ 4.9%
+ 5.7%
+ 6%
+ 3.1%
◼ Another effect of the two crisis has been
observed on customers behavior, as due to
the increasing waiting time and prices for
new vehicles they shifted towards used
cars, which registered an increase in prices
in 2021 in Europe
◼ In fact, in Italy, Germany,Austria and
Belgium, used cars prices increased from
3% to 6% between January and August
2021, testifying the increase in used cars’
demand
According to recent research made by
Autoscout, the nr. of announcements for
selling used cars has decreased (-14%
Jan-Aug 2021) while the number of
request announcements for used cars
has increased (+12% Jan-Aug 2021)

35
Automotive industry is in a unique situation.And though it may take some
time to get back on the track, it might be not necessarily a "bad news"
How much time will be needed to recover starting from Q2 2021?
Source: Arthur D. Little analysis on Eurostat and Allianz Research data; *) compared to standard deviation observed in the past twenty years; **) in number of month
− While the supply shortage in Italy may last until Q3-Q4 of 2022, the automotive sector
is now facing a unique supply situation: a high level of orders, a very high utilization of
production capacity and a very low level of inventories.
− In fact, financial statements available for Q1 and Q2 2021 most often confirm good if
not strong margins, despite lower volumes as far as prices of new cars are growing.
− But it is important to observe how the situation will evolve and see if supply shortages
may bring this conjuncture down as the supply shortage lasts.
− The situation for consumers that face longer waiting times is less positive
◼ Current shortages could take on average 11-12 month to normalize, i.e. on
average Europe will step out of the supply crisis by the end of Q2 2022
◼ Several countries, such as Germany, Sweden, Spain and Italy are exposed to a
longer wait and in the best case will start the recovery in the Q3 of 2022
◼ While Hungary will need nearly 9 month to recover and Czechia, Poland,
Romania and Lithuania less than 9 month
Supply shortage severity*
& est. recovery time**
10
12
10
10
9
10
10
11
8
8
11
8
8
9
12
12
7
11
x Months for recovery Supply shortarge severity
-
+
Current situation could accelerate the evolution of automotive production model, from the as-is characterized by an excess
of supply (with a consequent push on distribution networks and pressure on margins) to a new one focused on “built-to-
order”. This path could be supported by MaaS that might represent a key lever to manage customers’ waiting time from
order to delivery

36
Agenda
2 Europe
3 Italy

37
New Models Launch per Brand – Roadmap 2021 (1/5)
Source: Quattroruote; Arthur D. Little Analysis
New Car Models Launches in Italy
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
A
B
C
D
F
Commercial Launch of New Model
Facelift / Technical Update
Premiere
Launch Concluded
Launch Postponed
Launch Anticipated
(P)
Stelvio Tonale
Giulia GTA
e-Tron GT
BEV Q5 Sportback
Q4 e-Tron
BEV
iX BEV
i4
Serie 4 Gran
Coupé
C4 C5
Sandero Spring BEV
DS 4
DS 9
V6
500 X 500
◼ The launch plans announced by
OEMs could be delayed/reversed
due to the contingent market
situation

38
F
G
H
I
J
K
Premiere
Launch Concluded
Launch Postponed
Launch Anticipated
(P)
Fiesta
Mustang
Mach-E BEV
HR-V
Santa Fe Tucson Ioniq 5 BEV Bayon
XJ
Grand
Cherokee
Ioniq 5 BEV
Grand
Wagoneer
Imagine BEV
Sorento Sportage
situation

39
L
M
Premiere
Launch Concluded
Launch Postponed
Launch Anticipated
(P)
Huracan STO
MC 20
Ypsilon
Defender Range Rover
UX 300e
BEV
NX
Quattroporte Grecale
CX 30
CX 5 Mazda 3 Sedan
Mercedes SL
Classe S EQA BEV EQB BEV Classe C EQS BEV
situation

40
Premiere
Launch Concluded
Launch Postponed
Launch Anticipated
M
N
O
P
R
S
(P)
Ariya
Eclipse Cross
Qashsqai X-Trail
Mokka
Crossland
308
Taycan
Cross Turismo
911 GT3
Arkana
Megane
e-Vision
Cupra
Formentor
Cupra
el-Born BEV
Tarraco
Enyaq iV BEV Fabia
situation

41
Premiere
Launch Concluded
Launch Postponed
Launch Anticipated
S
T
V
(P)
Swace
Rexton
XV Outback
Across
Model Y
RAV4
Highlander Yaris Cross
ID.4 BEV Tiguan Allspace
XC 40 BEV
situation

Arthur D. Little has been at the forefront of innovation since 1886.
We are an acknowledged thought leader in linking strategy, innovation
and transformation in technology-intensive and converging industries.
We navigate our clients through changing business ecosystems to
uncover new growth opportunities.We enable our clients to build
innovation capabilities and transform their organizations.
Our consultants have strong practical industry experience combined
with excellent knowledge of key trends and dynamics.Arthur D. Little is
present in the most important business centers around the world.
We are proud to serve most of the Fortune 1.000 companies, in
addition to other leading firms and public sector organizations.
For further information please visit www.adlittle.com.
Copyright © Arthur D. Little 2021.All rights reserved.
Contacts:
Fabrizio Arena
Partner
Tel.: +39 06 68 882 344
Fax: +39 335 123 2387
e-mail: arena.fabrizio@adlittle.com
Arthur D. Little S.p.A.
Via Sardegna 40
00187 Rome – Italy
Tel.: +39 06 68 882 1
Fax: +39 06 68 882 322
Corso Monforte 54
20122 Milan – Italy
Tel.: +39 02 67 376 1
Fax: +39 02 67 376 251

Arthur D. Little - Global Automotive Market Report September 2021

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Arthur D. Little - Global Automotive Market Report September 2021

Similar to Arthur D. Little - Global Automotive Market Report September 2021 (20)

Recently uploaded

Recently uploaded (20)

Arthur D. Little - Global Automotive Market Report September 2021