What to do when the Thanksgiving conversation turns political, Uncle Francis has visited the punch bowl too many times and the dog has made off with the turkey

What to do when the conversation around the Thanksgiving table turns political, Uncle Francis has visited the punch bowl too many times and the dog has made off with the turkey?

Regale everyone with your comprehensive knowledge of an automotive glossary of key metrics, terms and definitions! It’ll stop them in their tracks. You can showcase your deep industry knowledge. Paralyze them with wonder disguised as tryptophan stupor.

Or, well, maybe you’ll just find it useful to brush up a little and get a refresher. So on this day, I give thanks to S&P Global Mobility’s recently released “Automotive Industry Glossary: Key Metrics, Terms & Definitions.”

Study up and please pass the potatoes.

Key automotive industry metrics

These are some of the numbers that drive decision making.

Average Transaction Price (ATP)

• What it is: The average price paid by customers after incentives, options and dealer adjustments.

• Why it matters: ATP tracks consumer spending trends and signals shifts in affordability.

Capacity Utilization

• What it is: The percentage of available manufacturing capacity that’s actually in use.

• Why it matters: Running too far below capacity signals inefficiency and cost pressure; running too high can limit flexibility and increase wear on assets.

Conquest / Defection Ratio:

• What it is: The percentage of new vehicle buyers who switch from one brand to another within a defined period. It measures how many customers a brand “conquers” from competitors versus how many it “loses” to them.

• Why it matters: Understanding conquest and defection helps OEMs and dealers evaluate brand loyalty, identify competitive threats, and optimize marketing or incentive strategies to attract new customers while retaining existing ones.

Cycle Time (hours/days)

• What it is: Total time to complete a production process from start to finish.

• Why it matters: Shorter cycle times improve throughput and reduce costs.

Energy Usage per Unit (kWh/vehicle)

• What it is: Average energy consumed to produce a single vehicle.

• Why it matters: Tracks production efficiency and sustainability goals.

Fleet Age/Average Vehicle Age

• What it is: The average age of all vehicles on the road in a specific market.

• Why it matters: An ageing fleet signals growing aftermarket demand and potential safety or emissions concerns. It also suggests opportunities for OEMs to promote replacement purchase.

First Pass Yield (FPY %)

• What it is: Percentage of products meeting quality standards without rework.

• Why it matters: High FPY reflects production quality and reduces cost.

Inventory Turnover (times/year)

• What it is: Frequency of inventory being sold and replaced in a year.

• Why it matters: Higher turnover indicates efficient stock management and better cash flow.

Company Market Share

• What it is: A company’s or brand’s portion of total market sales within a defined segment, region, or industry. Market share can also be measured by product line, technology type, or geography.

• Why it matters: Market share reveals how a company or product is performing relative to competitors. It helps assess competitive strength, identify growth opportunities, and understand whether you’re outperforming or lagging behind the market average.

Production Volume

• What it is: The total number of vehicles manufactured over a given period.

• Why it matters: Production volume tells us whether manufacturing is aligned with demand. On a granular level, deviations between planned and actual production reveal insights into a product’s market strength, a manufacturer’s operational health, and potential supply chain disruptions.

Residual Value

• What it is: The predicted market value of a vehicle at the end of a lease or ownership period.

• Why it matters: Residual values directly impact lease affordability and used vehicle pricing.

Scrap Rate (%)

• What it is: The percentage of material or components that become waste during production, typically referring to losses in battery cell or pack manufacturing due to defects or inefficiencies.

• Why it matters: Lower scrap rates improve production yield, reduce raw material waste, and cut both costs and environmental impact.

Seasonally Adjusted Annual Rate (SAAR)

• What it is: A key indicator of market activity that estimates the annualized vehicle sales rate, adjusted for typical seasonal fluctuations. It shows how many vehicles would be sold in a year if the current selling pace continued.

• Why it matters: SAAR provides a clearer view of underlying demand than raw monthly or quarterly sales. It helps analysts and automakers gauge market health and compare performance across time periods.

Total Cost of Ownership (TCO)

• What it is: The total cost of buying, running, and eventually selling a vehicle.

• Why it matters: TCO helps fleets and consumers choose vehicles based on lifecycle cost, not just purchase price.

Total Industry Volume (TIV):

• What it is: Total number of new vehicles sold across all manufacturers in a market during a specific period. 

• Why it matters: TIV is a key indicator of overall market size, demand trends, and industry health from supply chain constraints to changing consumer preferences. It also provides context for individual brand performance and market share analysis.

Vehicle Sales 

• What it is: The total number of vehicles sold in a specific time frame — monthly, quarterly, or annually.

• Why it matters: Sales volume is the heartbeat of the automotive industry. A sudden drop can signal consumer uncertainty, tighter credit conditions, or supply chain bottlenecks. A surge can reflect pent-up demand or successful product launches.

Overview: Glossary of automotive industry terms

Below is an A-to-Z guide to essential automotive industry terms. This glossary breaks down many core metrics and terms you’ll hear every day in the industry. Although it is comprehensive, this glossary is not exhaustive.

A

ADAS (Advanced Driver Assistance Systems): Technologies like lane-keeping assist, adaptive cruise control, and automatic emergency braking that enhance safety and convenience. 

Architecture: The structured design framework of a vehicle or system, defining how its major components, technologies, and interfaces fit together. In automotive, architecture can refer to the physical platform (e.g., chassis, powertrain layout or whether a vehicle is unibody or body-on-frame).

Architecture shapes development cost, scalability, and future innovation. A shared platform architecture allows OEMs to produce multiple models efficiently, while E/E and SDV architectures determine how vehicles integrate advanced features like ADAS, connectivity, and electrification. 

Autonomous vehicles: Vehicles equipped with sensors, AI, and control systems that enable them to operate with minimal or no human input. The level of autonomy is defined by the Society of Automotive Engineers (SAE) scale, ranging from Level 0 (no automation) to Level 5 (full automation under all conditions).

Average age of advertised inventory: The mean number of days vehicles remain listed or in stock before sale, calculated across all model years and types. 

B

Battery Capacity (kWh): The total amount of energy an electric vehicle (EV) battery can store, measured in kilowatt-hours (kWh). A higher capacity generally translates to a longer driving range, although efficiency and vehicle weight also play key roles.

Battery capacity is central to EV performance, consumer adoption, and cost. Larger batteries support longer ranges, but they also increase vehicle weight, price, and charging times. 

Battery Electric Vehicle (BEV or EV): Vehicle which operates on battery power only.  

Bodystyle: A classification that indicates both a vehicle’s silhouette (overall shape) and its door configuration. While Bodytype focuses on the structural form (e.g., sedan, SUV, hatchback), Bodystyle adds specificity by considering the number and arrangement of doors, which affects manufacturing processes, as well as passenger access and vehicle packaging.

For example, a sedan bodystyle may be standard or long wheelbase, a hatchback may have three or five doors, an MPV may or may not have sliding doors, and pick-up trucks come in a number of door and cab-length configurations 

Bodytype: The overall silhouette or structural form of a vehicle, describing its shape, roofline, and passenger/cargo configuration, without reference to the number of doors. Bodytype helps classify vehicles for production, regulatory, and market analysis purposes. 

For example, identifying Bodytype is essential for understanding vehicle functionality, market segmentation, and manufacturing design. Different Bodytypes influence aerodynamics, passenger capacity, cargo flexibility, and pricing.

Common Bodytype examples include: 

• Chassis-Cab: Cabin with chassis rails for aftermarket rear structures; two or more seats. Example: Mitsubishi Canter, Isuzu Elf

• Coupe: Lower roofline, typically two doors; rear glass fixed relative to trunk. Example: Ford Mustang 

• Convertible/Roadster: No fixed roof after the A-post; two or more seats (roadster: two seats only). Example: Porsche 911 (convertible), Mazda MX-5 (roadster)

• Hatchback: Upright silhouette; rear glass articulates with trunk; thick C/D-pillars depending on doors. Example: Volkswagen Golf, BYD Dolphin 

• Sedan: Formal three-box silhouette; rear glass does not articulate with trunk. Example: Toyota Camry

• SUV: Two-box silhouette; wheelbase-to-height ratio >60%. Example: Tesla Model Y, Toyota RAV4 

• MPV: One-box silhouette with taller roofline for private use. Example: Opel Meriva

• Pickup: Two-box silhouette with open rear cargo box. Example: Toyota Hilux 

• Van: Commercial use; one- or two-box silhouette; sliding or rear doors; wheelbase-to-length ratio >60%. Example: Ford Transit

• Wagon: Rear glass articulates with trunk; formal roofline; C-pillar window after second door. Example: Volkswagen Passat Wagon, Subaru Outback 

C

Car / Truck: A vehicle sector split used mainly in the United States to distinguish Passenger Cars from Light Trucks (LTR) under Environmental Protection Agency (EPA) conventions. Together, these are referred to as Light Vehicles.

CPO (Certified Pre-Owned) Vehicles: Used vehicles inspected and certified by manufacturers for resale.

Connected Vehicles: Vehicles equipped with internet access and networked communication technologies that enable interaction with other vehicles, infrastructure, and external systems. It can refer to V2V (vehicle-to-vehicle), V2I (vehicle-to-infrastructure), and V2X (vehicle-to-everything) connectivity. These capabilities support real-time diagnostics, navigation, infotainment, and advanced safety functions.

Curb Weight: Weight of a vehicle without passengers or cargo. Heavier EVs require careful design for efficiency and safety standards. 

D

Days’ Supply: The number of days it would take to sell current vehicle inventory at the prevailing sales rate. A high days’ supply can signal oversupply and pressure on pricing, while a low days’ supply may indicate strong demand or constrained production. 

E

E/E Architecture (Electrical/Electronic): The wiring, sensors, controllers, and communication networks (like CAN, Ethernet) that connect all electronic systems. 

Electric Vehicle (EV): A vehicle that uses one or more electric motors for propulsion, powered by an on-board battery or a combination of battery and internal combustion engine. EVs include:

• Battery electric vehicles (BEVs), which are powered entirely by electricity; 
• Plug-in hybrid electric vehicles (PHEVs), which can operate on electric power for limited distances before switching to ICE operation or a combination of ICE and electric power; and  
• Hybrid vehicles, which combine an electric motor with a conventional engine, operating using the battery only in limited circumstances, and cannot be charged externally.  

BEVs produce zero or reduced tailpipe emissions while PHEVs produce zero or reduced tailpipe emissions while in EV mode, offering a cleaner alternative to traditional vehicles.

Emissions (g/km or g/mile): The measurement of a vehicle’s carbon dioxide (CO2) output per unit of distance traveled, typically expressed in grams per kilometer (g/km) or grams per mile (g/mile).

Emissions data is a key benchmark for regulatory compliance, sustainability reporting, and lifecycle environmental impact targets. Efforts to meet these targets directly affect OEM strategies in vehicle design, electrification, and supply chain sustainability. 

Emissions are measured under standardized test cycles (e.g., WLTP, EPA), with values reflecting CO₂ released during fuel combustion per vehicle distance.

As regulatory frameworks tighten, such as the EU End-of-Life Vehicles Directive, OEMs are increasingly required to integrate closed-loop recycling and sustainable materials into design and production. Reducing emissions is no longer limited to vehicle tailpipes but extends across the full circular economy of automotive manufacturing. 

F

Fleet Electrification Rate (%): Percentage of a company or region’s fleet that is electric.

Fuel Efficiency (MPG / km/L): Average fuel efficiency across vehicles. 

Full-Frame: The frame is the main structure of the chassis of the vehicle, and all other components are fastened to the frame; full-frame is also known as body-on-frame or ladder frame construction. The frame runs the length of the vehicle. Vehicle designs, typically commercial vehicles, where the cabin is a unibody construction that is then mated to a rear ladder frame are classified as unibody architectures in the S&P Global Mobility database.

G

Gross Vehicle Weight Rating (GVWR): Maximum weight of a vehicle including cargo and passengers. GVWR is used to determine vehicle weight classification relative to emissions, fuel economy and safety standards.

Global Vehicle Sales: The total number of vehicles sold worldwide during a specific time period, typically reported monthly, quarterly or annually.

H

Hybrid Vehicle: A vehicle that combines an internal combustion engine (ICE) with one or more electric motors to improve fuel efficiency, reduce emissions, or enhance performance. Hybrids use a battery-powered electric motor to supplement the engine. Depending on the design, the vehicle may run on the engine alone, the motor alone (in limited cases), or a combination of both. Battery energy is typically recovered through regenerative braking and not plugged in.

Types:

• Mild Hybrid (MHEV): The electric motor assists the engine but cannot power the vehicle independently.

• Full Hybrid (HEV): Can operate at low speeds on electric power alone, with seamless switching between motor and engine.

• Plug-in Hybrid (PHEV): Features a larger battery that can be charged externally, enabling extended all-electric driving.

Horsepower (hp / PS / kW): A measure of a vehicle’s engine or motor power output, expressed in horsepower (hp), metric horsepower (PS), or kilowatts (kW). It quantifies the ability of the engine to perform work over time, influencing acceleration, towing capacity, and overall performance.

Horsepower is a key metric for comparing vehicles across segments and powertrains. It helps consumers, OEMs, and fleet operators understand performance potential and make informed purchasing or engineering decisions.

Unlike internal combustion engines, electric vehicles (EVs) can deliver peak horsepower instantly, which significantly changes acceleration profiles, driving dynamics and traditional performance comparisons.

I

Insurance Cost ($ / year): Average annual cost to insure a vehicle. Interestingly, connected vehicle data allows insurers to offer usage-based pricing, reducing premiums for safe drivers.

Internal Combustion Engine (ICE): An engine which converts energy through combustion in its combustion chamber. ICEs can use a variety of fuel sources, with gasoline most prevalent. Other fuel sources include diesel, bio-fuel and ethanol. Hydrogen internal combustion engines are in development but not yet commercialized to scale, while other companies are exploring synthetic fuels. Alternative solutions being explored to reduce or eliminate typical fuel emissions. 

Inventory Turnover Rate: How quickly a dealer or fleet sells its vehicles.  

K

Kilowatt-Hour (kWh): Measurement of electrical energy for EV batteries. 

L

Loyalty: The tendency of a vehicle owner or customer to repeatedly purchase or lease vehicles from the same brand, manufacturer, or dealership. Loyalty is a key indicator of brand strength and customer satisfaction, influencing retention rates, repeat sales, and long-term market share. 

Lease Penetration Rate (%): Percentage of vehicles leased rather than purchased.  

Light Vehicles: Passenger cars and light trucks. 

M

Manufacturer: The company (OEM or contract assembler) responsible for producing a specific vehicle at the plant level. A manufacturer may be the global brand owner itself, or a local partner assembling under license.

Miles per Gallon (MPG): A standard measure of fuel efficiency.

• MPG (miles per gallon) is commonly used in the US and UK.

• km/L (kilometers per liter) is used in some Asian markets.

• L/100 km (liters per 100 kilometers) is the standard in many other regions, including Europe, China, and Australia.

MSRP (Manufacturer’s Suggested Retail Price): The price a vehicle manufacturer recommends that a dealer charges for a new vehicle. MSRP serves as a baseline for pricing negotiations, incentives, and promotions but may not reflect the final sale price. Dealers ultimately set the final sale price, and it can be influenced by dealer discounts, regional market conditions, or supply and demand.
 

N

New Energy Vehicles (NEVs): In China, the term “NEV” is used in a regulatory sense to designate BEVs, PHEVs and FCEVs under a dual-credit system for automakers. They are vehicles that use alternative fuels or propulsion technologies instead of traditional petrol or diesel. They are designed to be more environmentally friendly, producing reduced or zero tailpipe emissions. NEVs include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), which generate electricity from hydrogen. 

New Vehicle Registrations: The number of newly sold vehicles officially registered with government authorities during a given time period (monthly, quarterly, or annually). Registrations confirm that a vehicle has entered service rather than when delivered from an OEM to a dealer. OEM revenue is based on sales to dealers and typically reported by the OEM, while dealer revenue is based on the sale to a customer, which is captured in registration data.

Registration data provides critical insight into consumer behavior, regional market trends, and demographic shifts. Registrations reflect end-user adoption, providing another tool for measuring demand across vehicle types, powertrains, and customer groups.

Networked Charging Infrastructure: Public and private EV chargers connected to data networks for monitoring and optimization. 

O

OEM (Original Equipment Manufacturer): Vehicle manufacturer that produces cars under its brands or, in some cases, under contract for other brands.

Over-the-Air Updates (OTA): Remote software updates for vehicles. OTA updates improve safety, enhance infotainment, and reduce recall costs.

P

Plug-in Hybrid Electric Vehicle (PHEV): Hybrid with an external charging option, allowing all-electric trips. 

Q

Quarterly Vehicle Sales: Vehicle sales reported per quarter.

Quality Rating: Measure of vehicle reliability and build quality. 
 

R

Range (miles / km): The distance an EV can travel on a full charge.

Residual Value (%): Expected resale value of a vehicle after a set period.

S

Supply Chain Lead Time (days): Total time from order to vehicle delivery. This encompasses all stages, including procurement, manufacturing, quality assurance, and logistics.

Supply chain lead time is a critical indicator of operational efficiency and customer satisfaction. Shorter lead times can lead to faster market responsiveness, reduced inventory costs, and improved competitiveness. Conversely, prolonged lead times may indicate inefficiencies or vulnerabilities within the supply chain.

SDV (Software-Defined Vehicle) Architecture: Centralized, cloud-connected software frameworks that enable over-the-air (OTA) updates, feature activation, and AI-driven services. 

T

Telematics: Data collection system that tracks vehicle performance, driver behavior, and location. Telematics enables predictive maintenance, reducing fleet downtime.

Total Cost of Ownership (TCO): Full cost of owning a vehicle, including purchase, fuel, insurance, and maintenance. 

U

Unibody: Vehicle construction in which the floor, roof, panels, etc. are welded together into one unit, thereby eliminating the need for a separate frame.

Used Vehicle Market: Sales of pre-owned vehicles.

Urban Mobility Index: Measures accessibility and efficiency of city transportation systems.

V

Vehicle Classification: A system for categorizing vehicles based on characteristics such as size, weight, powertrain, body type, or intended use. Common classifications include passenger cars, light trucks, SUVs, commercial vans and heavy-duty trucks.

In the global automotive industry, classification standards vary by region (e.g., EPA in the US, EU categories), but harmonized categories help benchmark sales, production, and emissions metrics across markets.

Vehicle platform architecture: Shared chassis and structural design used across multiple models.

Vehicle Electrification (%): Share of EVs in total vehicle stock.

Vehicle-to-Everything (V2X): Communication between vehicles and infrastructure for safety and efficiency. May include vehicle-to-vehicle information, vehicle-to-pedestrian and vehicle-to-infrastructure (typically road infrastructure like traffic lights). 

Vehicle-to-Grid/Home (V2G): Ability for electric vehicles to send stored electricity back to the power grid, to use stored electricity to provide electricity to a home or to use stored electricity to power items from workplace tools to other EVs. 
 

W

Warranty Cost ($): Average cost of warranty claims per vehicle.

Weight-to-Power Ratio: Vehicle weight relative to engine power; key for performance assessment.
 

X

XEV (Extended Electric Vehicle): Vehicles capable of operating partially on electricity with extended range.
 

Y

Yield on EV Battery Materials (%): Efficiency of producing battery-grade metals like lithium and cobalt.
 

Z

Zero-Emission Vehicle (ZEV): A vehicle producing no tailpipe emissions, typically battery-electric or hydrogen fuel cell. Governments increasingly mandate ZEV targets for 2030, accelerating adoption.