Number of totaled cars on the rise, Hyundai/Kia May sales, public EV charging update

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1. Over 20% of crashed cars now totaled instead of repaired

Top line: High-tech vehicles with advanced safety features typically come with higher repair costs, making many of them cheaper to replace than repair.

The data: An insurer will deem a damaged vehicle “totaled” when the cost of its repair exceeds its value. CCC Intelligent Solutions, an insurance-focused software firm, has tracked a sharp increase in the number of total losses.

• In 2014, only around 14% of vehicles were considered totaled.

• Today, that number is 21%, a 7% jump.

• The share of totaled vehicles is expected to reach 30% as cars continue becoming more complex.

What’s driving the surge?

• Advanced Driver Assistance Systems (ADAS): Provide many services, such as Automatic Emergency Braking (AEB), and require an array of sensors and cameras to be effective. ADAS components account for as much as 38% of repair costs of some newer models, according to the American Automobile Association.

• Federal requirements: The National Highway Traffic Safety Administration (NHTSA) has mandated that all new vehicles be equipped with AEB starting in 2029.

• Falling car prices: Between 2020 and 2022, insurance write-offs dropped back to 2018 levels as used vehicles became more expensive due to supply shortages. But as prices have normalized, so has the number of total losses.

Bottom line: As ADAS and other safety-focused systems become more complex and common, drivers will likely be more protected from injury and other adverse outcomes. The trade-off is that cars will probably be more expensive to repair and replace unless a cheaper solution is found.

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2. Hyundai/Kia May U.S. auto sales grow month-over-month

At a glance: Hyundai sold nearly 10,000 more units in May than in April, totaling 78,485. Kia likewise sold roughly 10,000 more units month-over-month. Kia’s total was 75,156, giving the automaker a much-needed boost after April’s sales slump. 

Driving the news: Hyundai sales are up 12% more than in May 2023. So far this year, the company has sold 331,892 vehicles, up 2% year-over-year. Kia sales increased 5.1% from this time last year. Year-to-date, the company’s sales are down 1%. 

Notable models: 

Ioniq 5 (+82% year-over-year, 10,147)
Kona (+48%, 8,308)
Palisade (+45%, 10,147)
Sonata (+55%, 6,700)
Santa Fe (+10, 10,997)

Forte (+31%, 13,132)
Niro (+26%, 4,215)
Carnival (+28%, 4,151)
Sportage (+20%, 15,512)
EV6 (+19%, 2,660)

The intrigue: Hyundai’s U.S. sales of all electrified vehicles (EVs, hybrids, plug-in hybrids) surged 50% year-over-year in May. 

• All-electric sales jumped 42%, with the Ioniq 5 having its best sales month ever. 

• This comes despite the lack of the $7,500 federal tax credit (maybe not for long), hinting that the leasing loophole might be driving some of the increase.

• Kia's EV and SUV sales hit record highs in May. They delivered 7,197 EVs, a 127% increase year-over-year, marking their best month for EVs ever.

Big picture: Strong May sales for both Hyundai and Kia are promising signs. The success of their SUVs, crossovers, and EVs, particularly the Ioniq 5 and EV9, suggests a growing consumer demand for these segments. Kia trails Hyundai this year. But, their May performance broke records and hints at possible future growth.

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3. Public EV charging pains ease in Q1

Recent improvements in public charging infrastructure, the arguably biggest barrier to EV adoption, might be slowly going away. Recent data from J.D. Power’s May 2024 E-Vision Report shows a significant surge in customer satisfaction with public EV charging networks.

By the numbers: Satisfaction with public DC Fast Charging (DCFC) reached 663 out of 1,000 points in Q1. This is up 16 from Q4 2023. Level 2 charging reached 610 points, up 9 from the previous quarter. 

• This is the biggest increase in public charging satisfaction since data collection began in 2021.

• Failures due to station outages and equipment malfunctions dropped from 71% in Q4 2023 to 59% in Q1 2024.

Historically, Tesla’s Supercharger network has been the gold standard for EV charging. 

• Yet, the recent gains in customer satisfaction have been driven by non-Tesla networks. This suggests competitors are catching up and may level the playing field for all EV users.

• Non-Tesla DCFC networks improved by 19 points, driving the overall satisfaction surge.

Tesla’s Supercharger network is vital to its brand appeal. Data from J.D. Power indicates that "charging station availability" is a top reason for purchasing Tesla models. 

• 36.4% of shoppers considering a Tesla Model Y list it as a key factor, followed by 32.8% for the Cybertruck, 32.2% for the Model 3, 28.5% for the Model X, and 27.2% for the Model S. 

• Any big setbacks or more competition in the Supercharger network could hurt one of Tesla's core value propositions.

• With the dismissal of some of the Tesla supercharger team, the EV maker’s competitive edge may experience some setbacks, especially as the charging market becomes more competitive.

• But as it stands, Tesla is still the clear leader. According to the Department of Energy’s Alternative Fuels Data Center, there are 42,327 DCFC ports in the U.S. Of those, 25,635 (61%) are Tesla.

Bottom line: These improvements in public charging infrastructure could be a game-changer for EV adoption. With concerns about reliability and availability diminishing, more consumers might consider going electric.

• The leading Chinese manufacturers, from BYD to Nio, all reported strong sales growth in May.

• A safety test scandal at Japanese automakers widened on Monday, with Toyota and Mazda both halting shipments.

• Ford’s latest project out of Motor City is the restoration and reopening of an abandoned train station.

• Stellantis CEO warns that BEV cost-cutting will squeeze OEMs and suppliers.

• Cybertruck owner says Tesla won't let him return or resell his EV.

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