BRAND WATCH

BRAND WATCHLUXURY SEGMENT TOPLINE REPORT1st Quarter 20211

BRAND WATCH KEY TAKEAWAYSTesla made a big comeback with a spikein consideration and garnered wins in 4factor categories. The Model 3, therefreshed Model S and Model Y reboundedand secured spots on the Top 5 mostconsidered luxury vehicle list.The disparity between Luxury SUVand Car consideration narrowed inQ1 2021 compared to Q1 2020. Thejump in Car consideration was driven bythe increased interest in the Model 3and Model S.For the first time ever, BMW 3 Seriesfell off the Top 10 list, which wasimpacted by the reduction in leasepenetration.2

BRAND WATCH: LUXURY CONSIDERATIONLuxury new-vehicles sales for Q1 2021 were remarkable with an increase of 17.3% compared to Q1 2020 and outperforming the overallindustry gain of 11.4%. Robust sales were most likely attributed to a bull stock market. Also, affluent shoppers were spending less on travel,leaving them with more disposable income to spend on luxury vehicles especially SUVs and crossovers.BMW Led the Way BMW’s Q1 2021 new-vehicle sales gained20.1% YOY, which beat the industry averageby nearly 9 percentage points. For the 11th consecutive quarter, BMWreigned as the leading brand in luxuryconsideration. Despite its lead,consideration slipped by 2 percentagepoints compared to Q1 2020 due todeclining consideration for the X5, X3 and 3Series. The newly launched M4 helpedoffset softened considerationLexus Rebounded Lexus took back the No. 2 spot from Audi inQ1 2021, due to Audi’s 1 percentage pointreduction. RX was the No. 1 consideredluxury SUV, however it fell behind Model 3 inoverall model consideration.Tesla Made a Big Comeback Tesla gained the most consideration in Q12021. Model 3, Model Y and Model S spikedin consideration. Model S got an all-newinterior and a reduction in price to help boostmomentum.QUARTERLY BRAND CONSIDERATIONQ4-20QUARTERLY CONSIDERATION GROWTHT OP 10 M OD EL SQ1-21Q1-21 vs. Q4-2022%20%19%19%19%18%17%15%12%15%Model 6%5%3%2%1%59%Model 3RX-18%45%3%11%Model SEnclave-5%23%RDXCT6-9%-21%95%2%1%Source: KBB Brand Watch Survey, Q1 20213

A CLOSER LOOK: LUXURY SUV INTEREST HIGHER THAN CARSThe disparity between Luxury SUV and Car consideration narrowed in Q1 2021 compared to Q1 2020. The slowdown in Luxury SUVconsideration may be triggered by the chip shortage, causing inventory shortage. The growth in Car consideration was impacted by the jump inconsideration for Model 3, refreshed Model S and the Cadillac CT6, which was in sell-down mode as production ceased in 2020.QUARTERLY SEGMENT CONSIDERATION66%54%LUXURY SUVSLast Qtr.69% Last Year64%TO P 5 L UX URY S UV sLUXURY CARSLast Qtr.51% Last Year54%TO P 5 L UX URY CARS#1RX#1Model 3#2Model Y#2Model S#3Q5#3CT6#4Enclave#45 Series#5RDX#53 SeriesLuxury SUV Consideration Cooled Down Lexus RX has maintained the No. 1 spot for the 5thconsecutive quarter (since Q1 2020). Tesla Model Y made the biggest stride and climbed 8ranks from Q4 2020 to No. 2 in Q1 2021. The redesigned Q5 turned heads with its sleek newexterior and garnered healthy consideration. It climbedfrom No. 5 in Q4 2020 to No. 3 in Q1 2021. Acura RDX gained traction in Q1 2021, which wassupported with APR and lease deals.Tesla Cars Accelerated into the Top 2 Spots Tesla’s and BMW’s entry/compact luxury and midsizeluxury cars dominated the Top 5 list. Luxury Cars had an advantage from an inventorystandpoint during the global chip shortage. Luxury Carswere operating at 72 to 85 days’ supply compared to theindustry average of 63. If the chip shortage persists,shoppers will have to compromise on color choices,features, options, or postpone their purchase until moresupply is available. indicate significant % change Q/QSource: KBB Brand Watch Survey, Q1-21; Last Qtr. Q4-20, Last Year Q1-20Interpretation Example: 69% of luxury shoppers consider luxury SUVs4

TOP 10 CONSIDERED ELECTRIFIED MODELS & OVERALL CONSIDERATIONElectrification has been a hot topic with OEMs introducing new models and the Biden administration proposing a 2.25-trillion infrastructure andstimulus plan to increase EV adoption and investment. The electrified segment grew from Q4 2020 with hybrids taking the lead, followed byBEV/Fuel Cell. Toyota hybrid models dominated half of the top 10 list while Tesla led the BEV segment with Model 3, Model Y and Model S.Quarterly Top Considered Electrified Models#1#2#3#4Overall Quarterly Consideration Trend#5Electric/hybrid/fuel cellElectric/fuel cell onlyHybrid only25%20%RAV4 HybridCompact SUV#6Model 3Entry Luxury Car#7CR-V HybridCompact SUV#8Highlander HybridMidsize SUV#919%Model YLuxury SUV#1015%10%14%7%5%Model SLuxury CarPrius HybridCompact CarAccord HybridMidsize SedanCamry HybridMidsize SedanPrius PrimeCompact 9Q32019Q42020Q12020Q22020Q32020Q42021Q10%Source: KBB Brand Watch Survey, Q1 2021 (*new models vs. Q4 2020)5

TOP 10 CONSIDERED MODELS: LUXURY SHOPPERSDespite a slowdown in Luxury SUV consideration, SUVs/Crossovers had a strong presence in the Top 10 list. All three Tesla models reboundedand secured spots in the Top 5. Longtime lease favorite BMW 3 Series fell off the list for the first time, which may have been caused by thedownturn in leasing as OEMs offered few great deals so luxury shoppers purchased instead of leased.TOP 10 MODELS#1#2#3RXMODEL 3* New to Top 10#4#4Q5MODEL Y*Entry LuxuryH/P/E CarLuxury MidsizeSUVLuxury CompactH/P/E SUVLuxury CompactSUV#6#7#8#9EnclaveLuxury MidsizeSUVRDX*Luxury CompactSUVX5Luxury MidsizeSUVTOP 10 IN Q1-21MDXLuxury MidsizeSUVSource: KBB Brand Watch Survey, Q1 2021 (*new models vs. Q4 2020)Executive Luxury H/P/E Premium Large Hybrid/Plug In/Electric Car SegmentMODEL S*Executive LuxuryH/P/E Car#9CT6*Executive LuxuryCarAcura SUVs on the RightPath Acura SUVs secured 2spots on the top 10 mostconsidered luxury models inQ1 2021. RDX had moreinventory availability at 75days supply and MDX wasat 60 days supply as of midMarch.Only One BMW on the List –First Time in 8 years BMW typically has two orthree models in the Top 10.With the slowdown inleasing and the chipshortage, BMW had onlyone model, X5, on the list.6

FACTORS DRIVING LUXURY CONSIDERATIONRankings for the top four factors driving luxury consideration remain unchanged for the past five years. Safety (No. 2) and Driving Comfort (No.3) switched spots in importance in Q1 2021 compared to Q4 2020. Despite the recession caused by the pandemic, luxury shoppers were lessaffected, causing Affordability to become less important.RANKQ1-16 Q1-21FACTORIMPORTANCE11Durability/Reliability81% 32Safety72% 23Driving Comfort71% 44Driving Performance62%65Reputation51%86Interior Layout48%57Affordability45% 98Technology44% 79Exterior Styling43%1010Fuel ication18%TOP RANKEDBRAND#2#3Tesla Ramped Up Category Wins Tesla revamped Model S’s interior for the first timesince 2012, which likely drove its top honor in InteriorLayout. Model S’s performance improved with a zeroto-60 mph time of under 1.99 seconds and its batteryrange impressively jump to 520 miles (on the newPlaid trim), which most likely helped secure Tesla’swins for Driving Performance, Technology and FuelEfficiency.Porsche Lost a Bit of Edge In the last 5 years, Porsche and Tesla have takenturns leading Driving Performance with Tesla toppingthe leaderboard more often. In Q1 2021, Porschewas back to the No. 2 spot as Tesla pulled ahead. Porsche has been the reigning leader inPrestige/Sophistication for 3 consecutive quarters.However, Jaguar overtook Porsche for ExteriorStyling. The British brand introduced its New I-PaceBlack with striking design elements. indicate significant % change from Q1-16 vs. Q1-21Source: KBB Brand Watch Survey, Q1 2021Q: Please review the list below and rate how important are each of the factors to you in deciding on your next new car7

WHAT IS BRAND WATCHTM ?Brand Watch, a shopper perception study, reveals trends in vehicle considerationamong new car consumers and factors that influence purchase decisions.Brand Level Study135,000 interviews since 2007BRAND WATCHTMModel Level Study84,000 interviews since 2012Captures brand and modelconsideration & familiarityamong new car shoppersTracks 12 factors importantto shoppers across allsegments and modelsRespondents are in-marketfor a new vehicle andrecruited from KBB.comWHAT CAN BRAND WATCHTM DO?Support the Cox Auto sales team and clients in strategizingvehicle launch plans and key messagingWhat is important toconsumers when shoppingfor a new vehicleHow brands and models perform onfactors most important to shopperswithin and across segmentsMeasure OEM brand equity8

BRAND WATCH TOPLINEFor all sales or client success inquiries, please contact:Sales Analytics Consultingkbb.SA-OEMConsulting@coxautoinc.comFor all other inquiries, please contact:Vanessa.Ton@coxautoinc.com9

Q1-21 vs. Q4-20 Model 3 RX Model Y Q5 Model S Enclave RDX X5 MDX CT6 TOP 10 MODELS Tesla Made a Big Comeback Tesla gained the most consideration in Q1 2021. Model 3, Model Y and Model S spiked in consideration. Model S got an all-new interior and a reduction in price to help boost momentum. BMW Led the Way BMW’s Q1 2021 new-vehicle .