As Senior Product Marketing Manager for Experian Automotive, Marty Miller is responsible for the strategy, development and marketing of Experian’s Vehicles in Operation (VIO) market reporting products. Miller is focused on working with Experian’s automotive clients to help them meet their product and inventory management needs by providing a better understanding of their markets. Miller is a recognized expert in the automotive information industry, with more than 20 years experience in the aftermarket area. Before joining Experian, Miller was an entrepreneurial consultant providing data preparation, analysis and process design to automotive-related companies. His prior experience includes corporate analysis prioritization, sales consulting and product management for R. L. Polk & Co. He holds a bachelor’s degree in computer science from Bowling Green State University. He is active in many Aftermarket associations including the Automotive Aftermarket Industry Association’s (AAIA) Technology Standards & Solutions Committee and the National Catalog Managers Association (NCMA). He has spoken at industry events including the NCMA and Automotive Aftermarket Products Expo (AAPEX) conferences, and has authored several articles on the business impact of data and analytics for the aftermarket industry. In this exclusive interview, Miller talks about the trends Experian is seeing in its quarterly VIO analysis and what the aftermarket can glean from this data.

Experian Automotive conducts a quarterly analysis of its AutoCount VIO (Vehicles in Operation) database. What insights does the company gain from this exercise and how can aftermarket manufacturers, distributors, retailers and shop owners benefit from this information?

The analysis we conduct showcases the information and trends our customers experience on a regular basis. Our AutoCount VIO data provides regional looks at information from both the U.S. and Canada showing things such as what new vehicles have entered the market, what vehicles have left (scrapped out) of the market, and what vehicles have shifted or moved within the market. We provide this information six weeks after the close of the quarter so our aftermarket retail and manufacturer customers can quickly make inventory and production decisions based on information specific to their markets. This means breaking the information down as far as the block group-level depending on the customer’s needs.

What are you seeing in VIO data in terms of passenger car count vs. light truck and what are your expectations for the next few years?

The vehicle mix is changing in terms of what’s on the road right now. For instance, as we continue to hear about increased sales of more fuel-efficient vehicles, many automatically think that means smaller passenger cars. However, our most recent analysis has shown that light trucks have surpassed passenger cars on the roads in the U.S. This is something new that many haven’t expected and something that aftermarket businesses need to be aware of as they begin planning for the months and years ahead. As for expectations in the coming years, predictions are hard to make considering the trend shifts we’ve seen recently. I can definitely say that having access to VIO information will be critical to any business trying to better plan for the future.

Any thoughts on the impact of Cash for Clunkers on current/future VIO?

We’ll have a better view of this once we’re able to conduct our analysis of the third quarter of the year (up through Sept. 30) later on this fall. Despite the seeming popularity of the Cash for Clunkers program, the impact on the total vehicle parc in the U.S. will most likely be minimal. According to the latest stats from the CARS program’s Web site, vouchers for 677,449 vehicles have been approved. When factoring the vehicles coming off as well as onto the road because of Cash for Clunkers, this equates to less than 1.4 million vehicles impacted, or 0.56 percent of the total VIO.

How do you feel "green" trends in general will impact future VIO?

Though hybrid vehicles and alternative fueled vehicles are still a small part of the total VIO parc, this segment is seeing some growth and will no doubt continue to carve out a firm niche in the market. For now, though, gas- and diesel-powered engines continue to dominate VIO and aren’t going to go away for quite a while. I think that we’ll see more marked increases in fuel-efficient vehicles hitting the marketplace as technology improves.

What additional advice do you have for aftermarket businesses looking to maintain and grow during these shifting times for the industry?

As the market continues to become more competitive, businesses cannot grow by doing what has worked historically. The market is changing much more quickly and, in many areas, erratically, for businesses to make educated decisions on past market performance. The best way to plan for tomorrow is by having the most recent information on what’s on the road and by performing the proper analysis to determine what that information means to their business and customers’ needs. 

What other important trends are you seeing in your VIO analysis?

As you might expect, we’ve definitely seen that VIO growth has slowed compared to previous years. At the same time, the vehicle mix is changing – trucks are taking a more prominent role and new models and vehicle types are continuing to be introduced.

One really interesting trend is the number of vehicles originally sold in Canada that exist in the U.S. market. More than 2.5 million “Canadian Only” vehicles now reside in the U.S.; and not just in states bordering Canada, but all across the country.

Expect to see more changes as new vehicle manufacturers from other countries (India, China, etc.) enter the market. Korean vehicle manufacturers have made a noticeable impact on VIO over the last decade. Hyundai specifically has more than 6 million vehicles registered in the U.S.

While new vehicles are the focus for parts manufacturers and retailers, there’s still a strong market for older cars. For instance, there are more than 1.1 million registered vehicles from model years 1967 to 1973 on the road in the U.S. today.

Among other regional and vehicle make statistics, analysis of our AutoCount VIO data has shown:
• California is the leading state with hybrid vehicles, but also leads in the highest volume of 10- and 12-cylinder vehicles;
• Ford is the most popular make, followed by Chevrolet and then Toyota;
• Front-wheel drive vehicles are the most popular today by nearly 2-to-1;
• Mid-ranged standard cars and full-size pickups are the most popular vehicle classes; and
• The Ford F-150, followed by the Honda Accord, are the most popular make/models.