SEMA Annual Market Report

2013 SEMA Annual Market Report

Introduction Three years of positive results point to a renewed growth trend for the Specialty Equipment Market. Overall, specialty equipment industry sales in 2012 climbed 4% to over $31 billion. Fueled by a rebirth of the muscle car, street performance products lead the growth of the industry. Models such as the Mustang, Camaro, and Challenger are sparking increased passion for performance products. The Camaro and Mustang were the most commonly displayed cars at the 2012 SEMA Show, indicating the industry s focus on the new muscle. But, muscle cars aren t the only ones getting the industry excited, a newcomer, the Scion FR-S, was also one of the most common 2012 SEMA Show booths vehicles. The truck market continues to rebound, both in terms of new-vehicle sales and specialty equipment sales. Sales of specialty equipment for light trucks grew 1% in 2012 to reverse a declining trend that was set off by the recent recession. New pickup truck sales are up for the third year, climbing 6.4% in 2012. With GM and Ford due to release major redesigns to their flagship pickups in the next couple models years, the truck sector looks like it should continue a slow recovery. The off-road market continues to be solid, with the Wrangler continuing as one of the most popular booth vehicles at the 2012 SEMA Show. With the Wrangler Unlimited accounting for nearly half of the Jeep vehicles in SEMA Show booths, the industry sees a lot of possibility for the four-door off-road sector. Industry optimism continues to build. The 2012 SEMA Show brought in a record attendance and the 2013 Show is shaping up to be even bigger. SEMA industry research shows that most companies are reporting sales are up over the last year and they expect growth going forward. More than 40 companies recently attended a new product development conference sponsored by SEMA. And in anticipation of further growth opportunities for members, SEMA is opening a new product development facility, the SEMA Garage Industry Innovations Center. Most economic indicators are showing positive signs, resulting in GDP growth and lower unemployment rates. Forecasters are generally predicting moderate, but increasing growth for the US economy over the next few years. While we aren t returning to the free spending days of the past decade, positive economic growth combined with the rebound in new-vehicle sales point to continued positive results for the specialty equipment market. For the first time, the includes sales estimates for a separate product category, Suspension. This gives us the opportunity to track an important industry product group which hasn t been reported as a separate category previously. In addition, the Q1 2013 SEMA Market Update is integrated into the Annual Market Report to provide additional updates on economic and industry trends. Think of this report as a starting point for the information that SEMA can provide to help your business. We encourage you to take advantage of its findings as well as all of the research reports available on our website, www.sema.org. As always, if you have any questions or require assistance with the data or information in this report, please let us know. Gavin Knapp Senior Manager, Market Research 1

Table of Contents DEFINING THE SPECIALTY EQUIPMENT MARKET 3 Research Methodology 6 OVERVIEW OF SPECIALTY EQUIPMENT MARKET 7 Total Retail Sales 7 Retail Sales by Product Segment and Market Niche 8 Retail Sales by Product Categories 9 Distribution Channels 10 Online Sales Analysis 11 PRODUCT SEGMENT OVERVIEW 12 MARKET NICHE OVERVIEW 14 Street Performance Niche 17 Sports Car Owner Profile 18 Compact Performance Niche 23 Compact Car Owner Profile 24 Light-Truck Niche 29 Light-Truck Owner Profile 30 Off-Road Niche 35 Off-Road Owner Profile 36 Restyling Niche 40 Restyling Owner Profile 41 Restoration Niche 49 Street Rod and Custom Niche 51 Classic Car Owner Profile 52 Racing Niche 56 Racing Vehicle Owner Profile 57 SEMA MARKET UPDATE Q1 2013 60 SEMA Consumer Demand Index 67 SEMA Financial Benchmarking 68 VEHICLE INFORMATION 70 New Vehicle Sales 71 Vehicle Registration 81 2

Defining the Specialty Equipment Market Defining the Specialty Equipment Market The specialty equipment market includes parts and accessories that are manufactured, sold and distributed for cars, light trucks, and other passenger vehicles (motorcycles, ATVs, UTVs, boats, etc.). These products are designed to customize or enhance the performance, handling or appearance of new or used vehicles. The market does not however include direct repair or replacement parts intended to replicate factory specs (except in the case of restoration parts for older vehicles). The specialty equipment market is often described as the parts you want rather than those you need. Some examples of products that fall into the specialty equipment market include exhaust kits, suspension kits, custom wheels, stereo systems and engine modifications to increase horsepower. Throughout this report, SEMA tracks two broad types of sub-groups within the specialty equipment market: Product Segments and Market Niches. Product Segments SEMA defines three product segments to include everything in the specialty equipment market: accessory and appearance products; performance products; and wheels, tires and suspension. These segments are made up of groups of products that serve similar functions and are generally added for the purpose of comparison. Accessory and appearance products include interior trim and accessories; restyling and appearance products; specialty waxes and chemicals; graphics and decals; sunroofs; and others. This segment has a broader range and larger number of products than the other latter two segments. These products are often a non-enthusiast s initial contact with the automotive specialty equipment industry. Many consumers keep coming back and, in the process, escalate their involvement with other industry products along the way. The second product segment is performance products, which includes internal engine, drivetrain, exhaust system, fuel system and ignition components designed to improve performance through increased durability, capability or dependability. This go-fast segment has long been thought of as the heart of the specialty equipment market. The third product segment in the specialty equipment industry is wheels, tires and suspension. Wheels, tires and suspension components include specialty shocks, struts, lowering packages, lift kits, custom wheels, performance tires and performance brakes. Custom wheels have become the most visible item in this product mix, though suspension upgrades are also common for performance and off-road enthusiasts. 3

Defining the Specialty Equipment Market Market Niches SEMA defines eight primary and one miscellaneous market niche, each of which includes the three product segments. Each of these market niches is centered around a vehicle type, how the vehicle is used or the type of components involved in the vehicle use. The three product segments detailed in the previous section are sold and installed in each of the niches. Four major types of information are combined to determine the size of each of the eight primary specialty equipment markets: product information, vehicle information, distributor/retailer/installer information and parallel research. For some niches, market size is determined by a combination of factors. For example, defining the light-truck market and off-road market volumes involves determining the nature of the vehicle on which the products are used [truck versus SUV/CUV versus car, etc.] and examining the nature of the product and its design purpose. Such definitions also involve combining information about product volume through particular retailers and distributors as well as specific outlets or installers where the products were purchased. For example, products designed for the trail [even if used on-road] would be allocated to the off-road market. The nine niches SEMA recognizes are: Street Performance Market Compact Performance Market Light-Truck Market Restyling Market Restoration Market Off-Road Market Street Rod and Custom Market Racing Market Other 4

Defining the Specialty Equipment Market Market Niche Definitions Light-Truck Market The Light-Truck Market involves all products used to modify the performance, appearance, and/or handling of light trucks (pickups, vans, and sport utilities) for street use. This category excludes products designed specifically for off-road use. Off-Road Market The Off-Road Market consists of all products used to modify the appearance, performance, and/or handling of light trucks, all-terrain vehicles, and other power units specifically for off-road use. Street Performance Market The Street Performance Niche includes all products (engine, handling, appearance) used to modify light vehicles for street use that would be considered performance vehicles, such as sports cars and muscle cars. This category does not include light trucks or any passenger cars that are not typically designed for performance (i.e. compact cars). Compact Performance Market The Compact Performance Market includes all products used to modify the performance, handling and appearance of compact size cars for street use. Racing Market The Racing Market includes all products used in vehicles and power units engaged in all types of off-street, professional and amateur racing and performance competition. Restoration Market The Restoration Market consists of all products used in returning vehicles to their condition as originally manufactured. There are four primary segments to the vehicle restoration market: antiques prior to 1920s; domestic vehicles 1920 to World War II; domestic vehicles post-world War II; and foreign vehicles. Restyling Market The Restyling Market comprises all products used to modify vehicles that are not specifically included in other segments of the Specialty Equipment market. Traditionally, this category has focused more on interior and exterior accessories than performance. Street Rod and Custom Market The Street Rod and Custom Market encompasses all products used in the construction and operation of street rods and customs. Street rods are highly modified vehicles based on body types from 1920 to 1948 for street use and show. Customs are vehicles from 1949 through the late 1960s that are modified in various aspects (particularly appearance) for street use and show. 5

Defining the Specialty Equipment Market Research Methodology The was compiled utilizing a variety of data sources, including interviews with industry sources, consumer surveys, secondary data sources and published government statistics. The main data was provided by: Lang Marketing Resources: Retail and Manufacturer Sales; Retail Sales Channels Information was gathered on 2012 specialty equipment market volume for retailers, jobbers and warehouse outlets; sales by product segment; and product sales by eight market niches. The data was collected through telephone interviews, mailed questionnaires, Internet questionnaires and parallel research. SEMA Consumer Segmentation: Vehicle Owner Profiles; Consumer Data The study surveyed 3,000 people across the U.S. who spent more than $100 per year modifying or accessorizing their vehicles. This study represents the buying habits of a large cross-section of specialty equipment buyers. The full SEMA Consumer Segmentation report is available for download from the SEMA website (sema.org/research), but pertinent details from the research were used in preparing this. Ward s Auto: New-Vehicle Sales Information was collected from Ward s online data library at www.wardsauto.com. Experian: Vehicle Registrations The data collected covered vehicles registered through the 2012 calendar year. U.S. Census Bureau; Federal Reserve; Bureau of Economic Analysis; U.S. Energy Information Administration: National Economic Trends Data was collected from published government statistics. 6

Overview of Specialty Equipment Market OVERVIEW OF SPECIALTY EQUIPMENT MARKET The automotive specialty equipment market covers a wide range of product types from hard-core performance to casual appearance accessories. The common theme is that these are parts you want on your car, not parts you need. While the voluntary nature of the industry leaves it susceptible to fluctuation, such as 2008 and 2009, a core group of dedicated consumers continues to support the industry. The stabilizing economy and increased new-vehicle sales have put the specialty equipment market back into a growth trend since 2010. The following data provide insights into where sales fluctuated, where consumers sought products plus industry and economic trends to provide a picture of the health of the Specialty Equipment Market. SPECIALTY EQUIPMENT retail sales ($ billions) 40 30 $ 31.32 +4% 20 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research 7

Overview of Specialty Equipment Market 2012 retail sales BY SEGMENT ($ billions) Accessory and Appearance Products $ 12.52 Percent Change from 2011 +4.9% Wheels, Tires and Suspension $ 10.61 +2.7% Performance Products $ 8.18 +5.7% 0 5 10 15 ($ Billions) Source: Lang Research 2012 retail sales BY Niche ($ billions) Percent Change from 2011 Street Performance $ 7.47 +15.3% Compact Performance $ 5.04 +3.0% Light-Truck $ 4.65 +1.0% Restyling $ 4.23 +5.6% Off-Road $ 1.46 +5.2% Restoration $ 1.31 +2.0% Racing $ 1.20 +5.9% Street Rod & Custom $ 1.19 +5.2% 0 1 2 3 4 5 6 7 8 ($ Billions) Source: Lang Research 8

Overview of Specialty Equipment Market Retail Sales by Product Categories Performance products continue to show steady growth along with video/entertainment and mobile phone accessories. Interior and exterior accessory and appearance products continued to lag as consumer discretionary spending continues to be hampered. The suspension category is listed for the first time this year and shows nice growth along with tires and wheels. Manufacturer Sales for Select Product Categories ($ millions) Accessory and Appearance 2007 2008 2009 2010 2011 2012 Amplifiers and Speakers Appearance Chemicals Appearance/Accessory Car - Exterior Appearance/Accessory Products Interior Appearance/Accessory Truck - Exterior Audio and Sound Accessories - Other Cellular/iPod/Bluetooth Accessories Graphics and Window Treatments Players, Changers, Receivers, and Tuners Racks and Cargo Carriers/Boxes Security Products Trailer/Towing Products Truck Bed Liners and Other Bed Accessories Truck Caps and Bed Covers Video/Entertainment/Navigational Systems $528.7 101.9 334.3 703.2 970.6 342.3 341.9 131.8 543.6 421.2 541.5 512.7 949.1 489.5 529.6 $458.7 98.6 228.7 381.8 539.7 302.2 420.4 95.4 441.4 253.6 469.5 345.7 638.7 355.2 733.6 $401.7 95.9 163.5 210.3 311.3 268.1 473.2 72.1 361.3 161.6 411.2 242.6 440.7 262.3 849.9 $426.5 100.7 148.4 154.5 254.0 266.7 556.5 66.3 377.3 144.2 421.4 219.6 370.0 227.5 1,009.8 $450.2 115.1 136.5 114.9 229.9 273.3 630.4 61.8 392.7 135.3 433.2 215.9 313.4 198.4 1,068.2 $469.2 119.1 122.4 100.9 202.8 279.1 703.5 58.7 404.9 128.3 447.9 188.2 269.4 176.3 1,143.5 Performance Products Brake Products Carburetor and Fuel System Products Chassis Products Performance Chemicals Cooling System Products Drive Train Products Electrical Products Engine Control Units/Computers Engine Dress-Up Products Engine Products Other Exhaust Products Ignition Products Lights and Lighting Systems Oil and Maintenance Chemicals Paint and Body Finishing Products Safety Products Service Tools Wheels, Tires and Suspension Custom Wheels Specialty/Performance Tires Suspension All Other Products TOTAL MANUFACTURER SALES $79.6 141.6 107.2 109.6 16.4 141.6 346.9 85.8 33.8 428.7 137.4 177.4 211.8 507.9 34.9 14.2 22.0 $1,679.6 1,620.2 217.2 $80.9 137.9 109.8 112.5 16.6 141.9 336.6 88.5 29.6 420.2 139.3 180.3 184.7 522.5 34.0 14.7 22.3 $1,362.2 1,477.0 224.1 $82.1 134.3 111.9 115.4 16.9 142.3 327.9 91.4 24.5 411.8 140.7 182.8 162.6 536.9 33.2 15.3 22.7 $1,119.1 1,349.4 228.6 $86.1 136.4 120.0 122.4 17.7 147.1 332.0 98.0 23.1 420.3 146.6 191.1 164.6 570.1 34.8 16.5 23.8 $1,198.6 1,441.2 239.1 $91.1 138.7 128.2 129.4 18.5 151.1 336.1 105.8 22.1 429.7 152.3 198.7 166.2 604.7 36.5 17.8 24.9 $1,301.2 1,553.7 255.3 $97.8 141.5 138.8 138.2 19.5 156.4 340.5 116.2 22.7 440.9 160.8 208.1 168.3 643.8 38.7 18.9 26.4 $1,435.9 1,693.9 266.7 $102.2 $98.8 $85.9 $71.2 $82.2 $97.7 $13,657.9 $11,329.3 $9,918.4 $10,344.1 $10,713.4 $11,185.9 Source: Lang Research 9

Overview of Specialty Equipment Market Distribution Channels Manufacturers report the highest volume share of sales dollars going through Specialty Product and Installation Outlets. These specialty auto parts stores often specialize in high value products for enthusiasts. While consumers say they most often shop at chain auto parts stores, these purchases are likely smaller and account for a lower total dollar volume. In addition to industry sales numbers, the SEMA Annual Market Report utilizes data from a large-scale consumer research project to better understand the broad, general market for accessories. The study surveyed 3,000 people across the U.S. who spent more than $100 modifying or accessorizing their vehicles. The entire report, SEMA Consumer Segmentation, can be downloaded from the SEMA website. Retail Sales Channels (% of volume) Outlets Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct from Manufacturers Discount Chains Tire Dealers Full-Line Auto Parts Stores New-Vehicle Dealers Speed Shops and Performance Retailers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 2012 Volume Share 28.5% 17.8% 17.3% 7.3% 5.0% 4.7% 3.9% 3.8% 3.4% 2.9% 2.1% 1.0% 0.5% 1.8% Source: Lang Research The consumer and Owner Profile charts and tables throughout the report present information gathered from this group of consumers. Where Consumers Shop Most Often (% of Consumers) Chain Auto Parts Store - Actual Store Location 36.3 Independent/Specialty Parts Store/Garage Auction Website (e.g. ebay) Chain Auto Parts Store - Website Discount Retail Store (e.g. WalMart, Target) Internet Website/Amazon (Retailer That Sells Online Only) Car/Truck Dealership Direct from Manufacturer Mail Order Catalog Car/Truck Show Discount Retail Store Website (e.g. WalMart.com, Target.com) Other 9.9 8.7 8.4 8.0 7.4 6.0 5.7 3.7 3.4 1.1 1.4 0 10% 20% 30% 40% 10

Overview of Specialty Equipment Market Where Consumers look for parts information (% of Consumers) Internet Searches (Google, Bing) 53.3 Friend or Relative 33.7 Manufacturer s Website or Catalog Chain Auto Parts Store (AutoZone, Pep Boys) - Actual 30.4 29.2 Magazines Chain Auto Parts Store (AutoZone, Pep Boys) - Website Auto Enthusiast Websites/Forums 21.2 22.6 25.1 Independent/Specialty Parts Store/Garage Car Shows Mail-Order Catalogs 15.0 17.0 16.0 Car or Truck Dealership 8.3 Car or Truck Club Other 4.8 4.2 0 10% 20% 30% 40% 50% 60% Online Sales Analysis The retail sales channel analysis from Lang Marketing shows the share of sales volume for company types within the industry. Each of these company types may present multiple point of purchase options for end customers. Online sales are not shown explicitly, since each business type may offer electronic shopping to customers. Given the nature of the business, valuations of online auto parts sales volume vary widely. Estimates we have seen range from $1.8 Billion [Lang Marketing 2011], to $3.5 Billion [Hedges and Company 2011], to $4 Billion [ebay Research 2009]. 11

Product Segment Overview PRODUCT SEGMENT OVERVIEW Accessory and appearance products are most affected by changes in discretionary income, which resulted in a large drop in 2008 and 2009. As the economy has stabilized, the Accessory segment has fallen back in line with the more enthusiast driven segments of Performance Products, and Wheels, Tires, and Suspension. product segment retail sales ($ billions) 25 20 15 10 $ 12.52 $ 10.61 $ 8.18 5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Accessory and Appearance Products Wheels, Tires and Suspension Performance Products Source: Lang Research 12

Product Segment Overview Most product sales are through Specialty Product/Installation Outlets, Automotive parts chains or mail-order. Market Share by Product Segment Outlets TOTAL Accessory and Appearance Racing and Performance Wheels, Tires and Suspension Specialty Product/Installation Outlets Automotive Parts Chains Mail Order Companies Direct from Part Manufacturers Discount Chains Tire Dealers Full-Line Auto Parts Stores New-Vehicle Dealers Speed Shops and Performance Retailers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 28.5% 17.8% 17.3% 7.3% 5.0% 4.7% 3.9% 3.8% 3.4% 2.9% 2.1% 1.0% 0.5% 1.8% 41.3% 16.0% 15.0% 6.3% 5.8% 1.0% 2.2% 3.4% 2.2% 2.3% 2.6% 0.2% 0.0% 1.7% 10.3% 29.4% 19.1% 6.4% 7.6% 0.6% 9.2% 2.4% 4.7% 1.9% 2.2% 2.2% 2.1% 1.9% 27.3% 11.1% 18.5% 9.3% 2.2% 12.1% 1.7% 5.3% 3.9% 4.4% 1.4% 1.0% 0.0% 1.8% Source: Lang Research Product Segments by Region Regions Accessory and Appearance Racing and Performance Wheels, Tires and Suspension New England Middle Atlantic South Atlantic East North Central East South Central West North Central West South Central Mountain Pacific 4.6% 10.0% 17.4% 13.4% 6.3% 6.9% 15.0% 7.8% 18.6% 4.3% 10.6% 18.5% 13.8% 6.7% 7.1% 15.0% 6.6% 17.4% 4.5% 9.5% 16.7% 13.1% 6.1% 7.3% 15.8% 8.2% 18.8% Source: Lang Research 13

Market Niche Overview market niche OVERVIEW Increased interest in sports and muscle cars has driven growth in the Street Performance Niche. Now the largest niche, in terms of sales volume, Street Performance has accounted for much of the overall market growth the last few years. The light-truck niche, long a driver of the specialty equipment market, stabilized in 2012. New truck sales are climbing and parts sales showed an increase for the first time since the recession. retail sales by niche ($ billions) 14 12 10 8 $ 7.47 6 4 $ 5.04 $ 4.65 $ 4.23 2 $ 1.46 $ 1.31 $ 1.20 $ 1.19 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Light-Truck Street Performance Compact Performance Restyling Off-Road Restoration Street Rod & Custom Racing Source: Lang Research 14

Market Niche Overview Not surprisingly, the market share for each niche shows that the truck and off-road niches post higher sales of suspension and handling products while the compact performance and restyling categories sell more appearance and accessory products. Market Share of Segments by Niche Street Performance 31.8% 37.0% 31.2% Compact Performance 48.6% 32.0% 19.4% Light Truck 38.7% 18.5% 42.8% Off-Road 29.6% 17.7% 52.7% Restyling 61.5% 16.5% 22.0% Restoration 41.0% 26.1% 32.9% Street Rod & Custom 29.8% 37.0% 33.2% Racing 18.9% 47.8% 33.3% 0 20% 40% 60% 80% 100% Accessory and Appearance Products Performance Products Wheels, Tires, Suspension Source: Lang Research Sales channels are pretty consistent across most niches in the specialty equipment market. Sales Channels by Niche (%) Street Performance Compact Performance Light- Truck Off-Road Restyling Restoration Street Rod & Custom Racing Specialty Product/ Installation Outlets 25.9% 29.3% 29.0% 28.4% 33.4% 28.6% 25.0% 23.4% Automotive Chains Mail Order Companies Direct from Manufacturers Discount Chains Full-Line Auto Parts Stores Tire Dealers Speed Shops & Performance Retailers 19.4% 17.7% 7.1% 5.4% 4.8% 4.2% 3.7% 16.9% 17.2% 6.8% 4.0% 4.2% 3.9% 3.4% 17.8% 16.5% 7.7% 4.7% 3.4% 5.4% 3.3% 15.5% 17.7% 8.1% 4.2% 3.2% 6.4% 3.5% 17.0% 16.6% 6.8% 5.7% 3.3% 3.2% 3.2% 17.7% 17.3% 7.4% 5.3% 4.1% 4.5% 3.4% 19.4% 17.8% 7.3% 5.4% 4.7% 4.4% 3.5% 15.5% 18.3% 9.4% 5.6% 5.7% 4.3% 4.0% New-Vehicle Dealers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 3.5% 2.9% 1.8% 1.4% 0.4% 1.8% 5.8% 1.8% 3.3% 1.2% 0.4% 1.8% 4.1% 3.4% 1.7% 1.1% 0.2% 1.7% 4.3% 3.6% 1.6% 1.2% 0.4% 1.9% 3.5% 3.1% 1.9% 0.7% 0.2% 1.4% 3.6% 3.0% 1.8% 1.2% 0.6% 1.5% 3.8% 3.0% 1.7% 1.4% 0.8% 1.8% 3.3% 2.8% 2.0% 1.6% 2.6% 1.5% Source: Lang Research 15

Market Niche Overview Sports car and classic car owners showed a higher propensity to perform engine, chassis and intake/ exhaust modifications than some of the other niche enthusiasts. Passenger car owners [midsize, fullsize, and luxury] were less likely to perform such hard parts modifications but were interested in performing interior and electrical modifications and in using chemical products. Types of Modifications (% of Owners) Street Performance Compact Performance Luxury Sports Car Sports Car Small/Compact Vehicle Engine Chassis Intake/Fuel/Exhaust Electrical (e.g. Audio, alarm, GPS) Drivetrain (e.g. Clutch, shifter, transmission) Chemicals (e.g. Fluids, cleaners) Lighting (e.g. Exterior/Interior) Interior (e.g. Mats, safety gear) Exterior (e.g. Decals, paint, racks, truck shell, hitch) Other 41.9% 38.1% 45.6% 56.9% 22.5% 40.0% 49.4% 50.6% 38.8% 4.4% 43.0% 40.8% 51.5% 41.3% 25.0% 42.5% 31.3% 51.8% 42.5% 6.5% 23.0% 26.3% 32.6% 42.9% 15.8% 39.5% 30.3% 48.7% 35.3% 6.9% Light-Truck Pickup Truck SUV/CUV Van/Mini Van Engine Chassis Intake/Fuel/Exhaust Electrical (e.g. Audio, alarm, GPS) Drivetrain (e.g. Clutch, shifter, transmission) Chemicals (e.g. Fluids, cleaners) Lighting (e.g. Exterior/Interior) Interior (e.g. Mats, safety gear) Exterior (e.g. Decals, paint, racks, truck shell, hitch) Other 24.7% 29.0% 35.5% 33.4% 11.6% 44.0% 22.8% 46.3% 57.5% 8.3% 17.8% 23.6% 26.8% 42.3% 7.5% 45.7% 27.5% 47.7% 43.8% 9.0% 23.2% 16.8% 22.4% 32.8% 11.2% 42.4% 25.6% 44.0% 30.4% 14.4% Midsize Car Restyling Large/ Fullsize Car Luxury Car Street Rod & Custom, Restoration Classic/Pre-1973 Engine Chassis Intake/Fuel/Exhaust Electrical (e.g. Audio, alarm, GPS) Drivetrain (e.g. Clutch, shifter, transmission) Chemicals (e.g. Fluids, cleaners) Lighting (e.g. Exterior/Interior) Interior (e.g. Mats, safety gear) Exterior (e.g. Decals, paint, racks, truck shell, hitch) Other 20.3% 22.6% 26.6% 40.3% 10.5% 46.1% 26.1% 46.6% 32.4% 8.4% 33.3% 39.8% 34.9% 40.9% 15.6% 48.9% 32.8% 39.8% 36.6% 8.6% 28.5% 29.5% 29.5% 44.4% 15.0% 39.1% 28.5% 48.8% 37.7% 5.8% 60.2% 55.6% 61.7% 39.3% 36.7% 42.9% 27.6% 50.0% 42.3% 6.6% Source: Lang Research 16

Street Performance Niche Street Performance Niche The street performance niche continues to drive much of the growth in the specialty equipment market. As the largest of the specialty equipment market niches, street performance accounts for more than $7 billion in total retail sales. street performance retail sales ($ billions) 8 7 $ 7.47 6 5 4 3 2 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research Sales of the three product segments are more balanced in the street performance niche than they are in most of the others. Manufacturer sales of street performance products are mostly to specialty stores, chain stores or mail-order companies. street performance manufacturer sales by product segment ($ millions) 1,200 1,000 800 $ 987 $ 848 $ 833 600 400 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 17

Street Performance Niche Sports Car Owner Profile Street Performance Sales Channel (% of Volume) The profile of the street performance consumer was comprised of data on the owners of sports cars and luxury sports cars. Among those owners, nearly one-third use auto-enthusiast websites and forums as a primary source for information on specialty equipment parts. Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct from Manufacturers Discount Chains Full-Line Auto Parts Stores Tire Dealers Speed Shops and Performance Retailers New-Vehicle Dealers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 25.9% 19.4% 17.7% 7.1% 5.4% 4.8% 4.2% 3.7% 3.5% 2.9% 1.8% 1.4% 0.4% 1.8% Source: Lang Research Sports Car - Sources of Information (% of Owners) Internet Searches (e.g. Google, Bing) 48.9 Manufacturer s Website or Catalog Magazines Auto Enthusiasts Websites/Forums 32.9 32.0 35.0 Friend or Relative Car Shows Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website Mail Order Catalogs Independent/Specialty Parts Store/Garage 28.8 27.1 23.9 22.3 20.0 19.6 Car or Truck Club Car or Truck Dealership Other 5.2 8.6 7.7 0 10% 20% 30% 40% 50% 60% 18

Street Performance Niche While many owners of sports cars make most purchases through chain auto parts stores, they are more likely to buy from specialty parts stores or mail-order than other consumers. Where Sports Car Owners Purchase Most Often (% of Owners) Chain Auto Parts Stores - Actual Store Location 25.7 Independent/Specialty Parts Store/Garage 13.9 Auction Website (e.g. ebay) Internet Website/Amazon (Retailer that sells online) Mail Order/Catalog Chain Auto Parts Stores - Website 11.4 10.5 9.1 8.2 Direct from Manufacturer Car/Truck Dealership Car/Truck Show Discount Retail Store (e.g. WalMart, Target) Discount Retail Store - Website (e.g. WalMart.com, Target.com) Other 5.7 5.5 4.5 3.0 0.7 1.6 0 5% 10% 15% 20% 25% 30% More than 80% of the respondents who owned sports cars did some or all of their product installations and modifications. How Sports Car Parts and Accessories Are Installed (% of Owners) 17.5% 28.6% Did it myself Did some myself and had others do some for me 53.9% Had someone do it for me 19

Street Performance Niche Sports Car - Spend on Accessories Per Year (% of Owners) More than $5,000 4.1 $2,501 - $5,000 9.5 $1,001 - $2,500 20.4 $501 - $1,000 27.5 $251 - $500 22.1 $101 - $250 16.4 0 5% 10% 15% 20% 25% 30% Sports car owners not only spend more on their vehicles than other types of owners, but are also more likely to purchase higher-end engine and intake/exhaust products than other consumers. Sports Car - Products Purchased (% of Owners) Interior (e.g. Mats, Safety Gear) Intake/Fuel/Exhaust 51.4 49.8 Electrical (e.g. Audio, Alarm, GPS) Engine Chemicals (e.g. Fluids, Cleaners) Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Chassis/Suspension/Wheels 45.7 42.7 41.8 41.4 40.0 Lighting (e.g. Exterior/Interior) 36.4 Drivetrain (e.g. Clutch, Shifter, Transmission) 24.3 Other 5.9 0 10% 20% 30% 40% 50% 60% 20

Street Performance Niche Not surprisingly, the primary reason that sports car enthusiasts modify their vehicles is for more horsepower and to go faster. While more than half are daily drivers, sports cars are more likely to be used as a second car or show car than most other types of vehicles. Sports Car - Primary Reason for Modifying (% of Owners) More Horsepower/Go Faster To Personalize 24.1 23.2 To Change/Improve the Look Improve Handling To Restore to Original or Near Original Condition 10.0 11.1 13.0 For Better Reliability 7.1 For Improved Safety To Save Money To be Raced at the Track Other 3.6 2.9 2.5 2.3 0 5% 10% 15% 20% 25% 30% Sports Car - How The Vehicle Is Used (% of Owners) It is my Daily Driver 53.2 Household Vehicle, but not Driven on a Daily Basis 30.9 I Take it to car Shows/Cruise-ins 21.4 I Race it at the Track 8.8 It Goes Off-Road 5.0 0 10% 20% 30% 40% 50% 60% 21

Street Performance Niche SEMA Show Street Performance Vehicle Data Most of the top models displayed at the 2011 SEMA Show remained in the top five in 2012. The Scion FR-S displaced the Dodge Charger from the top five positions and was the third most displayed model among the street performance cars. SEMA Show Vehicles Street Performance Top 5 Models 2010 2011 2012 Ford Mustang Chevy Camaro Dodge Challenger Chevy Corvette Dodge Charger 177 135 45 40 12 Chevy Camaro Ford Mustang Dodge Challenger Chevy Corvette Dodge Charger Note: The method of counting SEMA Show display vehicles changed between years. 116 99 35 26 22 Ford Mustang Chevrolet Camaro Scion FR-S Chevrolet Corvette Challenger, BMW 3-series, Porsche 911, Genesis 74 73 53 22 14 Source: SEMA Street Performance Vehicle Sales Sports cars and muscle cars are the top-selling vehicles that are considered part of the street performance niche. Note also that this study places all sports cars foreign and domestic in this niche rather than in compact performance. Examples of Current Street Performance Vehicle Sales 2008 2009 2010 2011 2012 Acura TL Acura TSX Audi A4 Audi A5 BMW 3-Series BMW 5-Series BMW 7-Series Chevrolet Camaro Chevrolet Corvette Dodge Challenger Dodge Charger Dodge Dart Ford Mustang Hyundai Genesis Infiniti G Infiniti M Mercedes SL Mercedes SLK Mitsubishi Lancer Nissan 370Z Porsche 911 Scion FR-S Subaru Legacy Volkswagen GTI 46,766 31,998 43,344 6,282 112,464 45,915 12,276 26,971 17,423 97,367 91,251 6,167 64,181 15,618 5,464 4,941 27,861 8,324 22,614 12,232 33,620 28,650 37,070 9,800 90,960 40,109 9,254 61,648 13,934 25,852 60,651 66,623 21,889 47,174 8,501 4,025 2,566 20,117 9,242 6,839 30,974 7,932 34,049 32,076 34,672 16,379 100,910 39,488 12,253 81,299 12,624 36,791 75,397 73,716 29,122 58,143 14,618 2,385 1,980 21,416 10,215 5,737 38,725 13,755 31,237 30,935 35,234 15,385 94,371 51,491 11,299 88,249 13,164 39,534 70,089 70,438 32,998 58,246 10,818 1,449 3,220 19,874 7,328 6,016 42,401 16,867 33,572 28,865 35,415 17,270 99,602 56,798 11,098 84,391 14,132 43,119 82,592 25,303 82,995 33,973 59,844 9,130 4,899 4,595 16,426 7,338 8,528 11,417 47,127 16,314 Sources: Ward s Auto, SEMA 22

Compact Performance Niche Compact Performance Niche Though the compact performance niche no longer shows the rapid increases of the early 2000s, it is still experiencing incremental growth each year. compact performance retail sales ($ billions) 5 $ 5.04 4 3 2 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research Compact performance manufacturer sales by product segment ($ millions) 1,000 800 $ 875 600 $ 577 400 $ 350 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 23

Compact Performance Niche Similar to other niches, compact performance products are mostly sold through specialty outlets, mailorder companies and automotive chains. They are slightly more likely to be sold through new-vehicle dealers and import auto parts stores than other niche products. compact Performance Sales Channel (% of Volume) Specialty Product/Installation Outlets Mail-Order Companies Automotive Chains Direct From Manufacturers New-Vehicle Dealers Full-Line Auto Parts Stores Discount Chains Tire Dealers Speed Shops and Performance Retailers Import Auto Parts Stores Wholesale Clubs Independent Repair Shops Machine Shops Other Locations 29.3% 17.2% 16.9% 6.8% 5.8% 4.2% 4.0% 3.9% 3.4% 3.3% 1.8% 1.2% 0.4% 1.8% Source: Lang Research Compact Car Owner Profile Most compact car owners search Internet sources for their specialty equipment purchases, but many also attend car shows to get information and ideas about accessorizing their vehicles. Compact Car - Sources of Information (% of Owners) Internet Searches (e.g. Google, Bing) 71.4 Car Shows 66.1 Manufacturer s Website or Catalog 57.0 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Auto Enthusiasts Websites/Forums Friend or Relative Independent/Specialty Parts Store/Garage 46.8 44.0 41.1 38.2 37.5 Magazines Car or Truck Club 27.0 24.9 Car or Truck Dealership 18.1 Mail Order Catalogs 13.0 Other 38.4 0 10% 20% 30% 40% 50% 60% 70% 80% 24

Compact Performance Niche Where Compact Car Owners Purchase Most Often (% of Owners) Chain Auto Parts Stores 36.6 Auction Website (e.g. ebay Discount Retail Store (e.g. WalMart, Target) Internet Website/Amazon (Retailer that sells online) Independent/Specialty Parts Store/Garage Chain Auto Parts Stores - Website Car/Truck Dealership Direct from Manufacturer Car/Truck Show 10.5 9.1 8.0 7.6 7.2 6.0 4.7 4.2 Discount Retail Store - Website (e.g. WalMart.com) Mail Order/catalog Other 2.4 1.8 2.0 0 10% 20% 30% 40% About one-third of compact car respondents said that someone else installed their parts and accessories. About two-thirds of compact vehicle owners spend $500 or less per year on accessories. How Compact Car Performance Parts and Accessories Are Installed (% of Owners) 42.6% 32.8% 24.6% Did it myself Did some myself and had others do some for me Had someone do it for me 25

Compact Performance Niche compact Car - Spend on Accessories Per Year (% of Owners) $101 - $250 32.2 $251 - $500 31.9 $501 - $1,000 22.8 $1,001 - $2,500 9.6 $2,501 - $5,000 2.2 More than $5,000 1.3 0 5% 10% 15% 20% 25% 30% 35% compact Car - Products Purchased (% of Owners) Interior (e.g. Mats, Safety Gear) 48.7 Electrical (e.g. Audio, Alarm, GPS) Chemicals (e.g. Fluids, Cleaners) 39.5 42.9 Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Intake/Fuel/Exhaust Lighting (e.g. Exterior/Interior) 30.3 32.6 35.3 Chassis/Suspension/Wheels Engine 23.0 26.3 Drivetrain (e.g. Clutch, Shifter, Transmission) 15.8 Other 6.9 0 10% 20% 30% 40% 50% 60% 26

Compact Performance Niche The compact vehicle owners are most interested in the appearance and personalization aspects of modifying vehicles. Only 8% of respondents said that more horsepower was a primary reason to modify, despite this niche being tied to performance. compact Car - Primary Reason for Modifying (% of Owners) To Personalize 23.7 To Change/Improve the Look For Better Reliability To Save Money Improve Handling 13.6 13.0 12.0 11.4 For Improved Safety 9.2 More Horsepower/Go Faster 7.8 To Restore to Original or Near Original Condition 5.4 Other To be Raced at the Track 2.9 0.9 0 5% 10% 15% 20% 25% compact Car - How The Vehicle Is Used (% of Owners) It is my Daily Driver 79.0 Household Vehicle, but not Driven on a Daily Basis 17.4 I Race it at the Track I Take it to car Shows/Cruise-ins 4.5 4.2 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 27

Compact Performance Niche SEMA Show Compact Performance Vehicle Data While the Fiat 500 was the top compact performance vehicle shown at the 2012 SEMA Show, the Subaru Impreza WRX has remained in the top five for the past few years. SEMA Show Vehicles Compact Performance Subaru Impreza WRX Scion xb Honda CR-Z Mitsubishi Lancer 2010 2011 2012 28 22 15 15 15 Subaru Impreza WRX Honda Civic Coupe/ Sedan Ford Focus Mitsubishi Lancer Note: The method of counting SEMA Show display vehicles changed between years. Top 5 Models 21 15 14 11 9 Fiat 500 Chevrolet Sonic Ford Fiesta Subaru Impreza WRX Chevrolet Spark Volkswagen Beetle 12 11 10 10 8 8 Source: SEMA Compact Car Vehicle Sales The Honda Civic continues as the most popular compact vehicle, rebounding considerably from last year s drop in sales. Examples of Current Compact Performance Vehicle Sales 2008 2009 2010 2011 2012 Chevrolet Cruze Chevrolet Sonic Chevrolet Spark Fiat 500 Ford Fiesta Honda Civic Honda CR-Z Honda Fit Hyundai Accent Kia Soul Mazda2 Mazda3 Mini Cooper Mini Countryman Mitsubishi Lancer Nissan Sentra Nissan Versa Scion iq Scion tc Scion xb Scion xd Subaru Impreza Toyota Yaris Volkswagen Beetle Volkswagen Golf Volkswagen GTI Volkswagen Jetta 339,289 79,794 50,431 109,957 54,077 27,861 99,797 85,182 40,980 45,220 27,665 49,098 102,328 26,477 12,232 97,461 259,722 67,315 68,086 31,621 96,466 45,225 20,117 82,706 82,906 17,998 25,461 14,499 46,611 63,743 14,085 1,211 7,932 108,427 24,495 23,273 260,218 5,249 54,354 51,975 67,110 3,021 106,353 45,644 21,416 94,065 99,705 15,204 20,364 10,110 44,395 40,076 16,537 13,426 13,755 123,213 231,732 15,778 19,769 68,574 221,235 11,330 59,235 55,601 102,267 13,952 102,417 40,828 16,683 19,874 114,991 99,730 248 22,433 17,017 9,573 41,196 32,704 6,468 17,839 16,867 177,360 237,758 81,247 12,385 43,772 56,775 317,909 4,192 49,346 61,004 115,778 19,315 123,361 45,111 21,012 16,426 106,395 113,327 8,879 22,666 19,787 10,756 81,799 30,590 29,174 24,571 16,314 170,424 Sources: Ward s Auto, SEMA 28

Light-Truck Niche Light-Truck Niche The SEMA definition of the light-truck niche includes a combination of pickups, SUVs, CUVs and vans. This market was particularly hard hit by the recession that began in 2008 as well as the escalation of fuel prices in the last few years. Light-truck accessory sales plummeted from their peak in 2007 but now seem to be leveling out. The downward trend has begun to improve slightly in 2012 by gaining almost 1% from the previous year. light-truck retail sales ($ billions) 15 10 5 $ 4.65 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research light-truck manufacturer sales by product segment ($ Millions) 800 600 400 200 $ 712 $ 643 $ 307 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 29

Light-Truck Niche Specialty product outlets remain the most common manufacturer sales channel for light- truck accessory buyers. Light-truck Sales Channel (% of Volume) Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct From Manufacturers Tire Dealers Discount Chains New-Vehicle Dealers Full-Line Auto Parts Stores Wholesale Clubs Speed Shops and Performance Retailers Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 29.0% 17.8% 16.5% 7.7% 5.4% 4.7% 4.1% 3.4% 3.4% 3.3% 1.7% 1.1% 0.2% 1.7% Source: Lang Research Light-Truck Owner Profile The light-truck niche includes all owners of pickups, SUVs, CUVs and vans. As with other niches, the majority of these owners seek information via the Internet, but they also rely on advice from friends and peers. When it comes to making purchases, their first choice is overwhelmingly auto parts chain stores, with nearly 44% buying from those sources. light-truck - Sources of Information (% of Owners) Internet Searches (e.g. Google, Bing) 54.0 Friend or relative 36.3 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Manufacturer s Website or Catalog 29.9 29.6 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website Magazines 21.8 21.5 Independent/Specialty Parts Store/Garage Auto Enthusiasts Websites/Forums Mail Order Catalogs Car Shows Car or Truck Dealership 15.6 15.4 12.9 11.4 9.4 Other Car or Truck Club 4.5 2.7 0 10% 20% 30% 40% 50% 60% 30

Light-Truck Niche Where light-truck Owners Purchase Most Often (% of Owners) Chain Auto Parts Stores 43.9 Discount Retail Store (e.g. WalMart, Target) Independent/Specialty Parts Store/Garage 9.4 8.7 Chain Auto Parts Stores - Website Internet Website/Amazon (Retailer that sells online) Car/Truck Dealership 6.7 5.9 7.9 Direct from Manufacturer Auction Website (e.g. ebay 5.7 5.2 Mail Order/catalog Car/Truck Show Discount Retail Store - Website (e.g. WalMart.com) Other 2.1 2.1 1.0 1.5 0 10% 20% 30% 40% 50% Almost half of light-truck owners said that they do all of the work on their vehicles themselves. How light-truck Parts and Accessories Are Installed (% of Owners) 31.3% Did it myself 46.5% 22.2% Did some myself and had others do some for me Had someone do it for me 31

Light-Truck Niche Nearly 56% of light-truck respondents spend between $250 and $1,000 per year on accessories. light-truck - Spend on Accessories Per Year (% of Owners) $101 - $250 $251 - $500 30.9 31.1 $501 - $1,000 24.8 $1,001 - $2,500 9.2 $2,501 - $5,000 More than $5,000 1.1 2.8 0 5% 10% 15% 20% 25% 30% 35% light-truck - Products Purchased (% of Owners) Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Interior (e.g. Mats, Safety Gear) Chemicals (e.g. Fluids, Cleaners) 44.5 48.6 46.6 Electrical (e.g. Audio, Alarm, GPS) 36.9 Intake/Fuel/Exhaust 30.4 Chassis/Suspension/Wheels Lighting (e.g. Exterior/Interior) Engine 21.7 25.3 25.0 Drivetrain (e.g. Clutch, Shifter, Transmission) Other 9.9 9.3 0 10% 20% 30% 40% 50% 60% 32

Light-Truck Niche Light-truck owners indicated that they modify primarily for personalization, but they re also looking for safety and reliability. light-truck - Primary Reason for Modifying (% of Owners) To Personalize 25.8 To Change/Improve the Look 17.4 For Better Reliability 15.3 For Improved Safety Improve Handling More Horsepower/Go Faster To Save Money Other To Restore to Original or Near Original Condition 8.0 7.1 6.9 6.2 5.4 5.2 For Off-road Use 2.7 0 5% 10% 15% 20% 25% 30% light-truck - How The Vehicle Is Used (% of Owners) It is my Daily Driver 72.2 Household Vehicle, but not Driven on a Daily Basis 22.7 I Use it to Tow a Trailer/Boat/Toy Hauler It goes Off-Road 13.6 16.3 I Take it to Car Shows/Cruise-ins 3.3 I Race it at the Track 2.3 0 10% 20% 30% 40% 50% 60% 70% 80% 33

Light-Truck Niche SEMA Show Light-Truck Vehicle Data The overwhelming majority of light trucks other than off-road vehicles on display at the 2012 SEMA Show were classified as street trucks or SUVs. The Jeep Wrangler and Chevy Silverado continue as the top two most displayed light trucks at the 2012 event. SEMA Show Vehicles light-truck Jeep Wrangler Chevy Silverado Ford F-150 Ram Toyota Tundra 2010 2011 2012 86 50 39 34 21 Top 5 Models Jeep Wrangler Chevy Silverado Ram Ford F-150 Ford F-250 102 58 37 35 23 Jeep Wrangler Chevy Silverado Ford Super Duty Ford F-series Ram 102 52 49 47 37 Note: The method of counting SEMA Show display vehicles changed between years. Light-Truck Vehicle Sales Source: SEMA After slumping sales in 2008 and 2009, many light-truck models began a rebound in 2010 and continued their upward sales trend in 2012. The Ford F-Series once again tops the sales leader board, with the number-two Chevy Silverado further behind compared to pre-recession figures in 2007. Some of the biggest changes among top-selling light trucks occurred with the Toyota RAV4, Honda CR-V, Toyota Tacoma and Dodge Caravan all gaining more than a 27% increase in sales for 2012. The Chevrolet Traverse suffered the greatest drop, down 20% in sales from the previous year. Examples of Current light-truck Vehicle Sales Chevrolet Equinox Chevrolet Silverado Chevrolet Traverse Chrysler Town & Country Dodge Caravan Ram Ford Econoline/Clubwagon Ford Edge Ford Escape Ford Explorer Ford F-Series GMC Sierra GMC Terrain Honda CR-V Honda Odyssey Honda Pilot Jeep Grand Cherokee Jeep Wrangler Kia Sorento Nissan Rogue Subaru Outback Toyota Highlander Toyota RAV4 Toyota Sienna Toyota Tacoma 2008 2009 2010 2011 2012 67,447 465,065 9,456 118,563 123,749 240,454 124,596 110,798 156,544 78,439 476,469 168,544 197,279 135,493 96,746 73,678 84,615 29,699 73,053 44,262 104,661 137,020 115,944 144,655 86,148 316,544 91,074 84,558 90,666 173,066 85,735 88,548 173,044 52,190 392,112 111,842 14,033 191,214 100,133 83,901 50,328 82,044 24,460 77,222 55,356 83,118 149,088 84,064 111,824 149,979 370,135 106,744 112,275 103,323 194,175 108,258 118,637 191,026 60,687 502,125 129,794 60,519 203,714 108,182 102,323 84,635 94,310 108,985 99,515 93,148 92,121 170,877 98,337 106,198 193,274 415,130 107,131 94,320 110,862 237,236 116,874 121,702 254,293 135,704 552,647 149,170 83,179 218,373 107,068 116,297 127,744 122,460 130,235 124,543 104,405 101,252 132,237 111,429 110,705 218,621 418,312 85,606 111,744 141,468 283,056 122,423 127,969 261,008 164,207 607,854 157,185 97,786 281,652 125,980 114,848 154,734 141,669 119,597 142,349 117,553 121,055 171,877 114,725 141,365 Sources: Ward s Auto, SEMA 34

Off-Road Niche Off-Road Niche The off-road niche recovered from the slight decline in 2011, mirroring the highest retail sales level from 2007. The sales of wheels, tires and suspension continued to climb each year within this niche. off-road retail sales ($ billions) 1.6 1.4 $ 1.46 1.2 1.0.8.6.4.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research off-road manufacturer sales by product segment ($ millions) 300 250 $ 275 200 150 $ 155 100 $ 92 50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 35

Off-Road Niche Off-Road Owner Profile The results tabulated in the following section include data from only consumers who indicated that they used their vehicles off-road. Like most others, off-road owners are likely to look to the Internet for information about customization. off-road Sales Channel (% of Volume) Specialty Product/Installation Outlets Mail-Order Companies Automotive Chains Direct from Manufacturers Tire Dealers New-Vehicle Dealers Discount Chains Wholesale Clubs Speed Shops and Performance Retailers Full-Line Auto Parts Stores Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 28.4% 17.7% 15.5% 8.1% 6.4% 4.3% 4.2% 3.6% 3.5% 3.2% 1.6% 1.2% 0.4% 1.9% Source: Lang Research off-road - Sources of Information (% of Owners) Internet Searches (e.g. Google, Bing) 54.0 Manufacturer s Website or Catalog 40.3 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store 38.7 Magazines 37.8 Friend or relative 30.3 Auto Enthusiasts Websites/Forums 30.3 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website 27.7 Car Shows 24.4 Mail Order Catalogs 22.7 Independent/Specialty Parts Store/Garage 20.2 Car or Truck Dealership 12.6 Car or Truck Club 5.9 0 10% 20% 30% 40% 50% 60% 36

Off-Road Niche Where off-road Owners Purchase Most Often (% of Owners) Chain Auto Parts Stores 35.3 Independent/Specialty Parts Store/Garage Chain Auto Parts Stores - Website Direct from Manufacturer Auction Website (e.g. ebay 12.6 10.9 8.4 8.4 Internet Website/Amazon (Retailer that sells online) Car/Truck Dealership Discount Retail Store (e.g. WalMart, Target) 5.0 7.6 6.7 Car/Truck Show Mail Order/catalog 3.4 0.8 Other 0.8 0 10% 20% 30% 40% 50% More than half of off-road vehicle owners do all of the installation themselves. How off-road Parts and Accessories Are Installed (% of Owners) 57.1% 22.7% 20.2% Did it myself Did some myself and had others do some for me Had someone do it for me 37

Off-Road Niche The majority of off-road vehicle owners spent more than $500 on parts and accessories for their vehicles. off-road - Spend on Accessories Per Year (% of Owners) $101 - $250 21.4 $251 - $500 24.4 $501 - $1,000 30.3 $1,001 - $2,500 16.8 $2,501 - $5,000 More than $5,000 3.4 4.2 0 5% 10% 15% 20% 25% 30% 35% off-road - Products Purchased (% of Owners) Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Interior (e.g. Mats, Safety Gear) Chassis/Suspension/Wheels 52.9 56.3 59.7 Intake/Fuel/Exhaust Chemicals (e.g. Fluids, Cleaners) Electrical (e.g. Audio, Alarm, GPS) 43.7 47.1 46.2 Engine Lighting (e.g. Exterior/Interior) 34.5 37.0 Drivetrain (e.g. Clutch, Shifter, Transmission) 19.3 Other 6.7 0 10% 20% 30% 40% 50% 60% SEMA Show Off-Road Vehicle Data The off-road vehicle displays have been consistent from year to year at the SEMA Show with Jeep Wrangler, Chevy Silverado and Ford F-series trucks falling in the top five off-road vehicles shown at the event. SEMA Show Vehicles light-truck Top 5 Models 2010 2011 2012 Jeep Wrangler Chevy Silverado Ford F-150 Ram Ford F-250 86 23 14 11 11 Jeep Wrangler Ford F-250/350 Ford F-150 Chevy Silverado Note: The method of counting SEMA Show display vehicles changed between years. 102 13 10 8 Jeep Wrangler Chevy Silverado Ford F-series Ram Ford Raptor 102 52 47 37 23 Source: SEMA 38

Off-Road Niche Off-Road Vehicle Sales Among vehicles often accessorized for off-road use, the Toyota Land Cruiser, Volkswagen Touareg and Honda Ridgeline experienced the largest gain in sales in the past year. Sales for the Ford Ranger and Ram Dakota declined drastically in 2012 as the vehicles are being discontinued. Examples of Current off-road Vehicle Sales 2008 2009 2010 2011 2012 Chevrolet Avalanche Chevrolet Colorado Chevrolet Silverado Chevrolet Suburban Chevrolet Tahoe Dodge Ram Dakota Ram Ford Expedition Ford F-Series Ford Ranger GMC Canyon GMC Sierra GMC Yukon GMC Yukon XL Honda Ridgeline Jeep Grand Cherokee Jeep Wrangler Land Rover LR4 Land Rover Range Rover Land Rover Range Rover Sport Nissan Frontier Nissan Titan Nissan Xterra Toyota 4Runner Toyota FJ Cruiser Toyota Land Cruiser Toyota Tacoma Toyota Tundra Volkswagen Touareg 35,003 54,346 465,065 54,058 91,578 26,044 240,454 55,123 476,469 65,872 14,974 168,544 39,064 26,404 33,875 73,678 84,615 8,393 11,668 44,997 34,053 33,579 47,878 28,668 3,801 144,655 137,249 6,755 16,432 32,413 316,544 41,055 73,254 10,690 173,066 31,655 392,112 55,600 10,107 111,842 29,411 16,819 16,464 50,328 82,044 867 7,312 11,364 28,415 19,042 16,455 19,675 11,941 2,261 111,824 79,385 4,392 20,515 24,642 370,135 45,152 75,675 13,047 194,175 37,336 502,125 55,364 7,992 129,794 28,781 23,797 16,142 84,635 94,310 7,122 8,746 12,347 40,427 23,416 20,523 46,531 14,959 1,807 106,198 93,309 4,713 20,088 31,026 415,130 49,427 80,527 12,156 237,236 40,499 552,647 70,832 9,590 149,170 34,250 25,223 9,759 127,744 122,460 7,983 9,761 15,333 51,700 21,994 18,221 44,316 13,541 1,662 110,705 82,908 7,535 23,995 36,840 418,312 48,116 68,904 490 283,056 38,062 607,854 19,366 8,735 157,185 27,818 23,427 14,068 154,734 141,669 7,316 7,843 16,491 55,435 21,576 17,222 48,755 13,656 2,895 141,365 101,621 10,553 Sources: Ward s Auto, SEMA 39

Restyling Niche Restyling Niche The restyling category is dominated by accessory and appearance products. With an upward growth trend for the past few years, the niche has resumed its peak sales resembling levels from 2007. Restyling retail sales ($ billions) 4.5 4.0 $ 4.23 3.5 3.0 2.5 2.0 1.5 1.0.5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research Restyling Manufacturer Sales ($ millions) 1,000 $ 927 800 600 400 $ 333 200 $ 249 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 40

Restyling Niche Restyling Owner Profile The profile for typical owners of restyled vehicles is a composite made up of information regarding owners of midsize and fullsize vehicles as well as luxury vehicles. Restyling Sales Channel (% of Volume) Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct From Manufacturers Discount Chains New-Vehicle Dealers Full-Line Auto Parts Stores Speed Shops and Performance Retailers Tire Dealers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 33.4% 17.0% 16.6% 6.8% 5.7% 3.5% 3.3% 3.2% 3.2% 3.1% 1.9% 0.7% 0.2% 1.4% Source: Lang Research Restyling - Spend on Accessories Per Year (% of Owners) $101 - $250 14.4 27.9 $251 - $500 22.6 33.9 $501 - $1,000 23.5 28.3 $1,001 - $2,500 9.0 19.9 $2,501 - $5,000 4.4 10.6 Luxury Midsize and Fullsize More than $5,000 4.1 1.2 0 5% 10% 15% 20% 25% 30% 35% 41

Restyling Niche While both groups use the Internet as a primary source for information, the owners of midsize and fullsize vehicles are more likely to also seek information from family and friends. Restyling - Sources of Information - Midsize and Fullsize (% of Owners) Internet Searches (e.g. Google, Bing) 57.8 Friend or relative 36.6 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Manufacturer s Website or Catalog Magazines Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website 30.9 28.3 26.8 24.0 Auto Enthusiasts Websites/Forums Car Shows Independent/Specialty Parts Store/Garage Mail Order Catalogs 19.4 15.9 15.1 14.4 Car or Truck Dealership 9.2 Car or Truck Club Other 4.8 3.0 0 10% 20% 30% 40% 50% 60% Restyling - Sources of Information - Luxury Vehicles (% of Owners) Internet Searches (e.g. Google, Bing) 47.1 Manufacturer s Website or Catalog 38.4 Auto Enthusiasts Websites/Forums Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website Magazines 30.8 30.5 28.1 27.5 Friend or relative Car Shows Mail Order Catalogs Independent/Specialty Parts Store/Garage 23.7 20.7 19.3 19.3 Car or Truck Dealership Car or Truck Club 8.2 9.5 Other 3.3 0 10% 20% 30% 40% 50% 60% 42

Restyling Niche Where Restyling Owners Purchase Most Often - Midsize and Fullsize (% of Owners) Chain Auto Parts Stores - Actual Location 36.7 Discount Retail Store (e.g. WalMart, Target) Chain Auto Parts Stores - Website Independent/Specialty Parts Store/Garage Auction Website (e.g. ebay Car/Truck Dealership Internet Website/Amazon (Retailer that sells online) Direct from Manufacturer Mail Order/Catalog Car/Truck Show Discount Retail Store - Website (e.g. WalMart.com) Other 10.6 10.2 10.1 8.8 6.2 5.7 4.9 3.0 2.3 0.5 0.9 0 10% 20% 30% 40% 50% Where Restyling Owners Purchase Most Often - Luxury Vehicles (% of Owners) Chain Auto Parts Stores - Actual Location 27.8 Auction Website (e.g. ebay 13.9 Chain Auto Parts Stores - Website 11.4 Independent/Specialty Parts Store/Garage Direct from Manufacturer Car/Truck Dealership Car/Truck Show Internet Website/Amazon (Retailer that sells online) Discount Retail Store (e.g. WalMart, Target) 9.5 8.2 7.6 6.5 5.2 5.2 Mail Order/Catalog Discount Retail Store - Website (e.g. WalMart.com) Other 3.0 0.8 0.8 0 5% 10% 15% 20% 25% 30% 43

Restyling Niche Interestingly, owners of luxury models were more likely to have completed all of the installation themselves. How Restyling Parts and Accessories Are Installed - Midsize and Fullsize (% of Owners) 33.6% Did it myself 43.3% 23.1% Did some myself and had others do some for me Had someone do it for me How Restyling Parts and Accessories Are Installed - Luxury Vehicles (% of Owners) 25.6% Did it myself 49.6% Did some myself and had others do some for me 24.8% Had someone do it for me 44

Restyling Niche Restyling - Products Purchased - Midsize and Fullsize (% of Owners) Chemicals (e.g. Fluids, Cleaners) Interior (e.g. Mats, Safety Gear) 44.3 47.0 Electrical (e.g. Audio, Alarm, GPS) 40.5 Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) 33.7 Intake/Fuel/Exhaust Lighting (e.g. Exterior/Interior) Chassis/Suspension/Wheels 29.3 28.3 28.3 Engine 24.6 Drivetrain (e.g. Clutch, Shifter, Transmission) 12.2 Other 8.5 0 10% 20% 30% 40% 50% Restyling - Products Purchased - Luxury Vehicles (% of Owners) Electrical (e.g. Audio, Alarm, GPS) Interior (e.g. Mats, Safety Gear) 49.9 49.6 Chemicals (e.g. Fluids, Cleaners) Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Lighting (e.g. Exterior/Interior) Intake/Fuel/Exhaust Engine Chassis/Suspension/Wheels 39.5 38.1 37.6 36.5 34.3 33.2 Drivetrain (e.g. Clutch, Shifter, Transmission) 18.3 Other 5.2 0 10% 20% 30% 40% 50% 60% 45

Restyling Niche Relative to other options, owners of midsize and fullsize models were much less likely to have accessorized for horsepower than owners of luxury vehicles. Restyling - Primary Reason for Modifying - Midsize and Fullsize (% of Owners) To Personalize 20.3 For Better Reliability To Change/Improve the Look 15.2 14.8 For Improved Safety 11.8 Improve Handling 10.4 To Save Money To Restore to Original or Near Original Condition 8.0 8.7 More Horsepower/Go Faster 6.9 Other 3.4 0 5% 10% 15% 20% 25% Restyling - Primary Reason for Modifying - Luxury Vehicles (% of Owners) To Personalize 24.0 Improve Handling 19.6 More Horsepower/Go Faster 15.3 To Change/Improve the Look 11.2 For Better Reliability For Improved Safety 8.4 8.4 To Save Money 6.8 To Restore to Original or Near Original Condition 4.4 Other 0.5 0 5% 10% 15% 20% 25% 30% 46

Restyling Niche Restyling - How The Vehicle Is Used - Midsize and Fullsize (% of Owners) It is my Daily Driver 75.3 Household Vehicle, but not Driven on a Daily Basis 17.3 I Take it to Car Shows/Cruise-ins 8.3 0 10% 20% 30% 40% 50% 60% 70% 80% Restyling - How The Vehicle Is Used - Luxury Vehicles (% of Owners) It is my Daily Driver 71.1 Household Vehicle, but not Driven on a Daily Basis 22.1 I Take it to Car Shows/Cruise-ins 9.5 I Race it at the Track 7.6 It Goes Off-road 7.1 0 10% 20% 30% 40% 50% 60% 70% 80% SEMA Show Restyling Vehicle Data The Mercedes Benz C-class headed the list of restyling vehicles on display at the 2012 SEMA Show, followed closely by the Chrysler 300. SEMA Show Vehicles Restyling Top 5 Models 2010 2011 2012 BMW M3 BMW 3-Series Bentley Continental Lamborghini Gallardo BMW M5 86 50 39 34 21 Note: The method of counting SEMA Show display vehicles changed between years. Bentley Continental Lexus IS Mercedes Benz CL Lexus GS Lamborghini Murcielago 11 6 6 5 5 Mercedes-Benz C-Class Chrysler 300 Ford Focus Ford Fusion Cadillac CTS 17 15 12 10 9 Source: SEMA 47

Restyling Niche Restyling Vehicle Sales Among top sellers of vehicles commonly restyled, the Lexus GS dramatically improved sales in 2012 with its complete redesign. Though not as staggering, the Chrysler 300 series nearly doubled its sales volume while the Mercedes CLS and Honda Accord both gain more than 40% in sales from last year. Examples of Current Restyling Vehicle Sales 2008 2009 2010 2011 2012 Acura TL Acura TSX Audi A3 Audi A6 Audi A8 BMW 1-Series Cadillac CTS Chrysler 300 Series Ford Focus Ford Fusion Honda Accord Hyundai Sonata Infiniti G Infiniti M Lexus ES Lexus GS Lexus IS Lexus LS Mazda6 Mercedes C-Class Mercedes CLS Mercedes E-Class Mercedes S-Class Nissan Altima Nissan Sentra Toyota Camry 46,766 31,998 4,759 11,956 2,825 12,018 58,774 62,352 195,823 147,569 372,789 117,357 64,181 15,618 64,135 15,759 49,432 20,255 52,590 72,471 5,775 38,576 17,787 269,668 99,797 436,617 33,620 28,650 3,874 6,786 1,463 11,182 38,817 38,606 160,433 180,671 287,492 120,028 47,174 8,501 48,485 7,430 38,077 11,334 34,866 52,427 2,527 43,072 11,199 203,568 82,706 356,824 34,049 32,076 6,558 8,675 1,521 13,132 45,656 37,116 172,421 219,219 282,530 196,623 58,143 14,618 48,652 7,059 34,129 12,275 35,662 58,785 2,135 60,922 13,608 229,263 94,065 327,804 31,237 30,935 6,561 11,124 5,700 8,832 55,042 36,285 175,717 248,067 235,625 225,961 58,246 10,818 40,873 3,746 29,669 9,568 35,711 69,314 5,665 62,736 12,258 268,981 114,991 308,510 33,572 28,865 7,205 18,998 6,002 7,689 46,979 70,747 245,922 241,263 331,872 230,605 59,844 9,130 56,158 22,160 27,708 8,345 33,756 81,697 8,065 65,171 11,794 302,934 106,395 404,886 Sources: Ward s Auto, SEMA 48

Restoration Niche Restoration Niche Sales in the restoration specialty equipment market are comprised of a broad mix of products used to return older vehicles to near original condition. While the accessory segment suffered most from the recession in this niche, the other two product segments suffered only modest declines and are on the rebound. Restoration retail sales ($ billions) 1.6 1.4 1.2 $ 1.31 1.0.8.6.4.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research Restoration manufacturer sales by product segment ($ millions) 250 200 $ 192 150 100 $ 154 $ 122 50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 49

Restoration Niche Restoration Sales Channel (% of Volume) Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct From Manufacturers Discount Chains Tire Dealers Full-Line Auto Parts Stores New-Vehicle Dealers Speed Shops and Performance Retailers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 28.6% 17.7% 17.3% 7.4% 5.3% 4.5% 4.1% 3.6% 3.4% 3.0% 1.8% 1.2% 0.6% 1.5% Source: Lang Research SEMA Show Classic Car Vehicle Data The Chevy Camaro dominated the Classic Car category at the 2012 SEMA Show. The Chevy Bel Air continued to be amongst the top five Classic Cars for the past few years. SEMA Show Vehicles Classic Car Top 5 Models 2010 2011 2012 Ford Roadster Chevy Bel Air Chevy C-10 Pickup Chevy Impala 5 3 3 2 Ford Coupe Chevy Bel Air Chevy Coupe Ford Roadster Note: The method of counting SEMA Show display vehicles changed between years. 13 5 3 3 Chevy Camaro Chevy Bel Air Ford Mustang Chevrolet Chevelle Shelby Cobra 20 14 12 11 10 Source: SEMA 50

Street Rod and Custom Niche Street Rod and Custom Niche The street rod and custom niche has experienced incremental growth for the past 10 years. Street Rod and Custom Retail Sales ($ billions) 1.4 1.2 $ 1.19 1.0.8.6.4.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research STreet Rod and Custom manufacturer sales by product segment ($ millions) 200 150 $ 157 $ 141 $ 126 100 50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 51

Street Rod and Custom Niche Classic Car Owner Profile The profile of classic car owners is comprised of information about people who work primarily on pre- 73 vehicles. While they rely on the Internet as a primary source of information, they also frequently look to magazines and car shows. Street Rod and Custom Sales Channel (% of Volume) Specialty Product/Installation Outlets Automotive Chains Mail-Order Companies Direct From Manufacturers Discount Chains Full-Line Auto Parts Stores Tire Dealers New-Vehicle Dealers Speed Shops and Performance Retailers Wholesale Clubs Import Auto Parts Stores Independent Repair Shops Machine Shops Other Locations 25.0% 19.4% 17.8% 7.3% 5.4% 4.7% 4.4% 3.8% 3.5% 3.0% 1.7% 1.4% 0.8% 1.8% Source: Lang Research Classic Car - Sources of Information (%owners) Internet Searches (e.g. Google, Bing) 47.4 Magazines 38.8 Car Shows 37.8 Mail Order Catalogs 36.7 Friend or Relative 33.2 Manufacturer s Website or Catalog 32.7 Auto Enthusiasts Websites/Forums 32.7 Independent/Specialty Parts Store/Garage 27.6 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store 18.9 Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website 12.8 Car or Truck Club 11.2 Car or Truck Dealership 5.6 Other 4.6 0 10% 20% 30% 40% 50% 52

Street Rod and Custom Niche Where Classic Car Owners Purchase Most Often (%owners) Mail Order/Catalog Independent/Specialty Parts Store/Garage Chain Auto Parts Stores - Actual Location 17.3 19.4 20.9 Auction Website (e.g. ebay) 12.2 Chain Auto Parts Stores - Website 8.7 Internet Website/Amazon (Retailer that sells online) Direct from Manufacturer Car/Truck Dealership Car/Truck Show Discount Retail Store (e.g. WalMart, Target) Other 6.1 4.6 4.1 3.6 1.0 2.0 0 10% 20% 30% 40% 50% How Classic Car Parts and Accessories Are Installed (%owners) 70.4% 22.4% 7.1% Did it myself Did some myself and had others do some for me Had someone do it for me 53

Street Rod and Custom Niche The overwhelming majority of owners of classic vehicles, more than 90%, do some or all of the work on their vehicles themselves with only 7.1% farming the work out to others. Classic Car - Spend on Accessories Per Year (%owners) $101 - $250 13.8 $251 - $500 23.5 $501 - $1,000 29.1 $1,001 - $2,500 18.4 $2,501 - $5,000 More than $5,000 7.1 8.2 0 5% 10% 15% 20% 25% 30% The majority of classic car owners spend between $250 and $2,500 per year on parts and accessories. Classic Car - Products Purchased (%owners) Intake/Fuel/Exhaust Engine Chassis/Suspension/Wheels 55.6 61.7 60.2 Interior (e.g. Mats, Safety Gear) 50.0 Chemicals (e.g. Fluids, Cleaners) Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Electrical (e.g. Audio, Alarm, GPS) Drivetrain (e.g. Clutch, Shifter, Transmission) 42.9 42.3 39.3 36.7 Lighting (e.g. Exterior/Interior) 27.6 Other 6.6 0 10% 20% 30% 40% 50% 60% 70% 54

Street Rod and Custom Niche One-third of classic car owners primarily restore their vehicles to original or near-original condition. Most classics are used as show cars or second vehicles Classic Car - Primary Reason for Modifying (%owners) To Restore to Original or Near Original Condition 32.1 More Horsepower/Go Faster 19.4 To Personalize 14.8 To Change/Improve the Look Improve Handling 7.7 8.7 For Improved Safety To be Raced at the Track For Better Reliability To Save Money Other 4.1 3.6 3.1 3.1 2.6 0 5% 10% 15% 20% 25% 30% 35% Classic Car - How The Vehicle Is Used (%owners) I Take it to car Shows/Cruise-ins 51.0 Household Vehicle, but not Driven on a Daily Basis 35.7 It is my Daily Driver 17.9 I Race it at the Track 10.2 It Goes Off-Road I Use it to Tow a Trailer/Boat/Toy Hauler 4.1 1.0 0 10% 20% 30% 40% 50% 60% 55

Racing Niche Racing Niche Retail sales for the racing niche rebounded from a slight drop in sales in 2011 and are at its highest level in 10 years. Both performance parts and wheel, tire and suspension products maintained a strong upward trend for this niche by nearly doubling sales over a decade. racing Retail Sales ($ billions) 1.4 1.2 $ 1.20 1.0.8.6.4.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Lang Research racing manufacturer sales by product segment ($ millions) 250 200 $ 205 150 100 50 $ 143 $ 81 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Wheels, Tires, Suspension Accessory and Appearance Products Performance Products Source: Lang Research 56

Racing Niche Racing Vehicle Owner Profile racing Sales Channel (% of Volume) Nearly 46% of vehicle owners who indicated that they race their vehicle at the track use a manufacturer s website or catalog as a source of information. This is the only niche in which something other than Internet searches appeared as the top source. Note: This study did not target dedicated race cars, so most responses will be for multi-use vehicles. Specialty Product/Installation Outlets Mail-Order Companies Automotive Chains Direct from Manufacturers Full-Line Auto Parts Stores Discount Chains Tire Dealers Speed Shops and Performance Retailers New-Vehicle Dealers Wholesale Clubs Machine Shops Import Auto Parts Stores Independent Repair Shops Other Locations 23.4% 18.3% 15.5% 9.4% 5.7% 5.6% 4.3% 4.0% 3.3% 2.8% 2.6% 2.0% 1.6% 1.5% Source: Lang Research racing - Sources of Information (%owners) Manufacturer s Website or Catalog Internet Searches (e.g. Google, Bing) Auto Enthusiasts Websites/Forums Chain Parts Stores (e.g. AutoZone, Pep Boys) - Actual Store Car Shows Magazines Chain Parts Stores (e.g. AutoZone, Pep Boys) - Website 45.9 42.9 42.1 39.1 38.3 36.8 36.1 Friend or Relative Independent/Specialty Parts Store/Garage Mail Order Catalogs 31.6 31.6 31.6 Car or Truck Dealership 21.8 Car or Truck Club 15.0 0 10% 20% 30% 40% 50% 57

Racing Niche Where racing Owners Purchase Most Often (%owners) Chain Auto Parts Stores - Actual Location 19.5 Car/Truck Show 15.8 Auction Website (e.g. ebay) Independent/Specialty Parts Store/Garage 11.3 10.5 Direct from Manufacturer Mail Order/Catalog Car/Truck Dealership Chain Auto Parts Stores - Website Internet Website/Amazon (Retailer that sells online) 8.3 7.5 7.5 6.8 6.0 Discount Retail Store (e.g. WalMart, Target) 4.5 Discount Retail Store- Website (e.g. WalMart.com, Target.com) Other 1.5 0.8 0 5% 10% 15% 20% 25% Nearly 90% of race vehicle owners do some or all of the work themselves. How racing Parts and Accessories Are Installed (%owners) 68.4% 10.5% 21.1% Did it myself Did some myself and had others do some for me Had someone do it for me 58

Racing Niche Almost 50% of participants in the racing niche reported that they spend between $500 and $2,500 on accessories. racing - Spend on Accessories Per Year (%owners) $101 - $250 5.3 $251 - $500 18.8 $501 - $1,000 27.1 $1,001 - $2,500 21.4 $2,501 - $5,000 15.0 More than $5,000 12.0 0 5% 10% 15% 20% 25% 30% The top products that had already been purchased for vehicles in the racing niche were engine and intake/fuel/exhaust products. racing - Products Purchased (%owners) Engine Intake/Fuel/Exhaust Chassis/Suspension/Wheels Exterior (e.g. Decals, Paint, Racks, Truck Shell, Hitch) Electrical (e.g. Audio, Alarm, GPS) Interior (e.g. Mats, Safety Gear) 61.7 60.2 54.9 52.6 51.9 50.4 Chemicals (e.g. Fluids, Cleaners) Drivetrain (e.g. Clutch, Shifter, Transmission) Lighting (e.g. Exterior/Interior) 42.9 45.1 43.6 Other 0.8 0 10% 20% 30% 40% 50% 60% 70% 59

SEMA Market Update Q1 2013 SEMA MARKET UPDATE Q1 2013 Year to Year Growth (% Change) 15% 13 10% 5% 0 4 2-5% -10% -15% -20% -25% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 GDP Specialty Equipment Auto Sales Source: Bureau of Economic Analysis The automobile industry continued its recovery in 2012 with a third-consecutive increase in vehicle sales of 13%. Similar to last year, the specialty equipment industry also posted an increase above overall gross domestic product (GDP). Despite the continued spikes in average gasoline prices, two pickup models the Ford F-Series and Chevrolet Silverado remain the best-selling vehicles in the United States. 60

SEMA Market Update Q1 2013 u.s. retail gas prices ($ per gallon) $ 4.50 $ 4.00 $ 3.50 $ 3.61 $ 3.00 $ 2.50 $ 2.00 $ 1.50 $ 1.00 $ 0.50 2003: Jan 2004: Jan 2005: Jan 2006: Jan 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Source: Energy Information Administration While fluctuating quarterly, overall GDP has shown positive growth throughout the last two years. Forecasters predict continued, steady growth in GDP over the next several years. Real GDP (%) Real GDP (%) 6% 4% 2 2.5 Quarterly Data: Forecast Previous New 0-2% -4% -6% 2013:Q1 2013:Q2 2013:Q3 2013:Q4 2014:Q1 1.7 2 2.7 2.8 N/A 2.1 2.3 2.6 2.5 2.7-8% -10% 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Annual Data (projections are based on annual-average levels): 2013 2014 2015 2016 2 2.7 2.9 N/A 1.9 2.8 2.9 3 Source: Bureau of Economic Analysis Source: Federal Reserve Bank of Philadelphia: Survey of Professional Forecasters 61

SEMA Market Update Q1 2013 Unemployment continues to be a sore spot for the economy though the rate has steadily decreased from the 2009 high. u.s. Unemployment Rate (% change) 10% Unemployment Rate (%) Forecast Previous New 8% 6% 4% 7.6 Quarterly Data 2013:Q1 2013:Q2 2013:Q3 2013:Q4 2014:Q1 7.9 7.8 7.8 7.6 N/A 7.8 7.7 7.6 7.5 7.4 2% Annual Data (projections are based on annual-average levels) 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan 2013 2014 2015 2016 7.8 7.4 6.9 N/A 7.7 7.2 6.7 6.3 Source: Bureau of Labor Statistics Source: Federal Reserve Bank of Philadelphia: Survey of Professional Forecasters The unemployment rates in the United States have been declining overall the past few years and are forecast to continue to decline steadily through the next several years. Though the rate isn t expected to quickly drop back to 2007 levels, economists are becoming more optimistic about improvements. The sales of general retail goods [excluding the automotive sector] have been climbing since mid-2009. This growth reflects consumers return to normal spending, pulling out of the economic slump. retail and food excluding auto ($ millions) $ 350 $ 341.8 $ 300 $ 250 $ 200 $ 150 $ 100 $ 50 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan 62

SEMA Market Update Q1 2013 The growth in auto parts retail remains less steady than other markets, but overall sales are above pre-recession highs. auto parts retail stores ($ millions) $ 8 $ 6 $ 6.9 $ 4 $ 2 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Source: U.S. Census Bureau Electronics and appliance stores have not seen the recovery that most other retail has experienced. This may indicate a combination of reduced discretionary spending and a shift to online purchases. electronics and appliance stores ($ millions) $ 11 $ 10 $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 $ 8.3 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Source: U.S. Census Bureau 63

SEMA Market Update Q1 2013 Sporting goods, hobby, book and music store sales are rebounding after several years of turbulence. Sporting Goods, Book, Hobby, Music Stores ($ millions) $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 $ 7.9 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Source: U.S. Census Bureau Both income and consumption are on the mend after big drops in 2009. With consumption growth remaining higher than income advances, it may signal that consumers are anticipating better times. personal income and consumption (% change) 5% 4% 3% 2% 1% 1.9 1.5 0-1% -2% -3% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Disposable Personal Income, Chained (2005) Dollars Personal Consumption Expenditures (PCE) Source: Bureau of Economic Analysis 64

SEMA Market Update Q1 2013 Industrial production has rebounded from 2009, returning to 2007 levels. Motor-vehicle parts have historically lagged behind but now exceed production of other durable goods. industrial production index 120 100 104 102 80 60 40 20 2007:Q1 2008:Q1 2009:Q1 2010:Q1 2011:Q1 2012:Q1 2013:Q1 Durable Manufacturing Motor Vehicles and Parts Source: U.S. Federal Reserve System SEMA show The SEMA Show has experienced steady growth since 2009. In 2012, the SEMA Show had its highest attendance ever, and 2013 is estimated to be even bigger. estimated sema show attendance (2004-2012) 160,000 140,000 135,000 120,000 100,000 80,000 60,000 40,000 20,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: SEMA 65

SEMA Market Update Q1 2013 Top 2012 SEMA Show Display Vehicles Street Performance Compact Performance Light-Truck Ford Mustang Chevrolet Camaro Scion FR-S Chevrolet Corvette Challenger, BMW 3-series, Porsche 911, Genesis 74 73 53 22 14 Fiat 500 Chevrolet Sonic Ford Fiesta Subaru Impreza WRX Chevrolet Spark Volkswagen Beetle 12 11 10 10 8 8 Jeep Wrangler Chevrolet Silverado Ford F-Series Ford Super Duty Ram 101 52 49 48 30 Off-Road Restyling Classic Car Jeep Wrangler Chevrolet Silverado Ford F-Series Ram Ford Raptor 101 52 47 30 23 Mercedes-Benz C-Class Chrysler 300 Ford Focus Ford Fusion Cadillac CTS 17 15 12 10 9 Chevrolet Camaro Chevrolet Bel Air Ford Mustang Chevrolet Chevelle Shelby Cobra 20 14 12 11 10 Source: SEMA SEMA Show New Products Showcase There were a total of 1,929 unique entries in the New Products Showcase for the 2012 SEMA Show, and a total of 652 different companies submitted products for the Showcase. The following tables list the percentages of products by Show sections, as well as by the product categories of the New Products Showcase. Not surprisingly, there were significantly more products submitted by companies in the Racing & Performance section of the SEMA Show compared to the other sections, since it s the largest in terms of square footage and number of exhibitors. Percentage of New Products by SEMA Show Section Racing & Performance Trucks, SUVs & Off-Road Hot Rod Alley Restyling & Car Care Accessories Tools & Equipment Restoration Total Percentage of Products by Showcase Category Performance-Street Product Exterior Accessory Product Off-Road/4-Wheel Drive Product Performance-Racing Product Tools & Equipment Product Van/Pickup/Sport-Utility Product Engineered New Product Featured Product Street Rod/Custom Car Product Interior Accessory Product Wheel and Related Product Mobile Electronics Product Collision Repair & Refinish Product Merchandising Display Powersports Product Packaging Display Tire and Related Product 2010 39.4% 14.4% 6.5% 7.1% 5.1% 2010 14.5% 7.9% 10.0% 10.6% 5.0% 5.4% 5.6% 7.5% 6.9% 4.8% 4.3% 3.7% 4.1% 2.7% 2.5% 2.2% 2.1% 2011 43.5% 16.1% 7.1% 6.1% 5.5% 2011 15.7% 8.1% 10.6% 11.1% 4.9% 5.8% 5.3% 6.5% 7.5% 4.7% 4.1% 3.5% 2.9% 2.7% 2.7% 2.1% 1.8% 2012 40.3% 18.8% 8.1% 8.1% 5.1% 4.5% Source: SEMA 2012 17.5% 10.6% 10.3% 7.7% 6.7% 6.4% 5.9% 5.6% 5.5% 5.3% 4.5% 3.4% 3.0% 2.0% 1.9% 1.8% 1.8% Source: SEMA 66

SEMA Market Update Q1 2013 SEMA Consumer Demand Index The chart below includes the monthly index since 2011. The index is fairly steady through 2011 and the start of 2012, while the second half of 2012 showed a general increasing trend. Consumer Demand Index 50 40 39 38 30 20 10 2007: Jan 2008: Jan 2009: Jan 2010: Jan 2011: Jan 2012: Jan 2013: Jan Consumer Demand Index 2 Month Rolling Average Source: SEMA Consumer Demand Index With assistance from TechnoMetrica, SEMA began developing the Consumer Demand Index [CDl] in January 2007. The purpose of the index is to track and help forecast U.S. consumer demand for automotive specialty and performance products, including appearance products and accessories; racing and performance products; and wheels, tires and suspension products. The CDl is a weighted composite index that was set to an initial value of 100 based on demand levels between January 2007 and March 2007. The indices track consumers plans to purchase specialty equipment products within the next three months. The indices and their movements are projectable to the national market for automotive specialty equipment products. That market consists of more than 114 million U.S. households. 67

SEMA Market Update Q1 2013 SEMA Financial Benchmarking The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with key, industry-specific performance indicators to help them measure and compare their business operations with others in the industry. Data is collected each month from three different market segments: manufacturers, distributors and retailers. Program manager Hedges & Company collects this data anonymously through an online SEMA Financial Benchmarking survey. Those companies that participate receive a free copy of the SEMA Financial Benchmarking Reports. After seeing mostly positive growth in 2011 to recover from the downturn, 2012 showed more mixed results. The second half of 2012 showed a more downward trend in sales year over year. Both distributors and retailers are slowly recovering in Q1 of 2013 from the lackluster holiday season. YTD Sales Comparison for Manufacturers (%) 80% 70% 60% 58.1 50% 40% 30% 20% 10% 22.6 19.4 2011: Jan 2011: Jul 2012: Jan 2012: Jul 2013: Jan Up Flat Down Source: SEMA Financial Benchmarking 68

SEMA Market Update Q1 2013 YTD Sales Comparison for Retailers (%) 80% 70% 60% 50% 40% 47.8 30% 20% 26.1 26.1 10% 2011: Jan 2011: Jul 2012: Jan 2012: Jul 2013: Jan Up Flat Down Source: SEMA Financial Benchmarking YTD Sales Comparison for distributors (%) 90% 80% 70% 60% 50% 40% 50.0 30% 31.8 20% 10% 18.2 2011: Jan 2011: Jul 2012: Jan 2012: Jul 2013: Jan Up Flat Down Source: SEMA Financial Benchmarking 69

Vehicle Information VEHICLE INFORMATION New-vehicle sales increased 13% from 2011 to 2012. total vehicle sales (in millions) 20 15 14.4 Million cars +13% 10 5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Ward s Auto, SEMA quarterly new-vehicle sales (in millions) 5 4 3 2 1 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 2006 2007 2008 2009 2010 2011 2012 2013 Total Small Car Total Large Car Total CUV Total Van Total Commercial Chassis Total Middle Car Total Luxury Car Total SUV Total Pickup Source: Ward s Auto, SEMA 70

Vehicle Information New-Vehicle Sales Of the top 30 sales leaders, those that experienced the greatest sales increases compared to 2011 were likely to be either small or midsize cars. The vehicle in the top 30 that experienced the most growth was the Kia Optima. Top 30 Vehicles Sold Ford F-Series Chevrolet Silverado Toyota Camry Honda Accord Honda Civic Nissan Altima Toyota Corolla/Matrix Ram Pickup Honda CR-V Ford Escape Ford Focus Ford Fusion Chevrolet Cruze Hyundai Sonata Chevrolet Equinox Chevrolet Malibu Hyundai Elantra Toyota Prius Toyota RAV4 Volkswagen Jetta Chevrolet Impala Ford Explorer GMC Sierra Jeep Grand Cherokee Kia Optima Nissan Rogue Jeep Wrangler Dodge Caravan Toyota Tacoma Ford Edge 2008 2009 2010 2011 2012 % Change from 2011 476,469 465,065 436,617 372,789 339,289 269,668 351,007 240,454 197,279 156,544 195,823 147,569 117,357 67,447 178,253 94,720 158,884 137,020 97,461 265,840 78,439 168,544 73,678 44,904 73,053 84,615 123,749 144,655 110,798 392,112 316,544 356,824 287,492 259,722 203,568 296,874 173,066 191,214 173,044 160,433 180,671 120,028 86,148 161,568 103,269 139,682 149,088 108,427 165,565 52,190 111,842 50,328 37,527 77,222 82,044 90,666 111,824 88,548 502,125 370,135 327,804 282,530 260,218 229,263 266,082 194,175 203,714 191,026 172,421 219,219 24,495 196,623 149,979 198,770 132,246 140,928 170,877 123,213 172,078 60,687 129,794 84,635 27,382 99,515 94,310 103,323 106,198 118,637 552,647 415,130 308,510 235,625 221,235 268,981 240,259 237,236 218,373 254,293 175,717 248,067 231,732 225,961 193,274 204,808 186,361 136,463 132,237 177,360 171,434 135,704 149,170 127,744 84,590 124,543 122,460 110,862 110,705 121,702 607,854 418,312 404,886 331,872 317,909 302,934 290,947 283,056 281,652 261,008 245,922 241,263 237,758 230,605 218,621 210,951 202,034 200,926 171,877 170,424 169,351 164,207 157,185 154,734 152,399 142,349 141,669 141,468 141,365 127,969 10.0% 0.8% 31.2% 40.8% 43.7% 12.6% 21.1% 19.3% 29.0% 2.6% 40.0% -2.7% 2.6% 2.1% 13.1% 3.0% 8.4% 47.2% 30.0% -3.9% -1.2% 21.0% 5.4% 21.1% 80.2% 14.3% 15.7% 27.6% 27.7% 5.1% Source: Ward s Auto, SEMA 71

Vehicle Information The following chart shows the sales for all vehicles sold in 2012. Car sales in total increased about 18.9% compared with the previous year, while light-truck sales increased 8%. The sales of larger vehicles (cars, CUVs, SUVs) as well as small CUVs and small pickups declined from 2011. Midsize cars and luxury CUVs experienced the most growth in 2012, with 23.5% and 22.5%, respectively. New-Vehicle Sales Car Small Car 2008 2009 2010 2011 2012 Chevrolet Aveo Chevrolet Cobalt Chevrolet Cruze Chevrolet Sonic Chevrolet Spark Dodge Caliber Dodge Dart Fiat 500 Ford Fiesta Ford Focus Honda Civic Honda CR-Z Honda Fit Honda Insight Hyundai Accent Hyundai Elantra Hyundai Veloster Kia Forte Kia Rio Kia Soul Kia Spectra Mazda MX-5 Miata Mazda2 Mazda3 Mini Cooper Mitsubishi I Mitsubishi Lancer Nissan Cube Nissan Sentra Nissan Versa Pontiac G3 Pontiac G5 Pontiac Vibe Saturn Astra Scion FR-S Scion iq Scion tc Scion xb Scion xd 55,360 188,045 84,158 195,823 339,289 79,794 50,431 94,720 36,532 68,465 10,977 109,957 54,077 27,861 99,797 85,182 25,439 46,551 11,968 40,980 45,220 27,665 38,516 104,724 36,098 160,433 259,722 67,315 20,572 68,086 103,269 26,328 34,666 31,621 47,114 7,917 96,466 45,225 20,117 21,471 82,706 82,906 6,223 12,362 33,842 6,298 17,998 25,461 14,499 48,623 97,376 24,495 45,082 23,273 172,421 260,218 5,249 54,354 20,962 51,975 132,246 68,500 24,619 67,110 272 6,370 3,021 106,353 45,644 21,416 22,968 94,065 99,705 14 86 97 25 15,204 20,364 10,110 28,601 856 231,732 15,778 35,049 19,769 68,574 175,717 221,235 11,330 59,235 15,549 55,601 186,361 9,284 76,295 20,111 102,267 5,674 13,952 102,417 40,828 80 19,874 14,459 114,991 99,730 248 22,433 17,017 9,573 67 11 237,758 81,247 12,385 10,176 25,303 43,772 56,775 245,922 317,909 4,192 49,346 5,846 61,004 202,034 34,862 75,681 40,275 115,778 6,305 19,315 123,361 45,111 588 16,426 7,667 106,395 113,327 11,417 8,879 22,666 19,787 10,756 Source: Ward s Auto, SEMA 72

Vehicle Information New-Vehicle Sales Car Small Car (cont.) 2008 2009 2010 2011 2012 Smart Fortwo Subaru BRZ Subaru Impreza Suzuki Forenza Suzuki SX4 Toyota Corolla/Matrix Toyota Prius C Toyota Yaris Volkswagen Beetle Volkswagen Golf Volkswagen GTI Volkswagen Jetta Volkswagen Rabbit TOTAL SMALL CARS 24,622 49,098 20,796 29,483 351,007 102,328 26,477 12,232 97,461 20,070 2,512,514 14,595 46,611 3,769 20,704 296,874 63,743 14,085 1,211 7,932 108,427 6,470 2,064,991 5,927 44,395 12 11,606 266,082 40,076 16,537 13,426 13,755 123,213 1,105 2,078,351 5,208 41,196 12,520 240,259 32,704 6,468 17,839 16,867 177,360 2,342,554 10,009 4,144 81,799 12,860 290,947 35,733 30,590 29,174 24,571 16,314 170,424 2,825,284 Source: Ward s Auto, SEMA New-Vehicle Sales Car Middle Car 2008 2009 2010 2011 2012 Acura ILX Buick Regal Buick Verano Chevrolet Camaro Chevrolet Impala Chevrolet Malibu Chrysler 200 Series Chrysler Sebring Sedan Dodge Avenger Dodge Challenger Ford C-Max Ford Fusion Ford Mustang Honda Accord Honda FCX Hyundai Azera Hyundai Sonata Kia Optima Mazda RX-8 Mazda6 Mercury Milan Mitsubishi Eclipse Mitsubishi Galant Nissan 350Z Nissan 370Z Nissan Altima 265,840 178,253 71,663 61,963 17,423 147,569 91,251 372,789 11 14,461 117,357 44,904 3,368 52,590 31,393 20,107 26,941 10,337 269,668 61,648 165,565 161,568 27,460 38,922 25,852 180,671 66,623 287,492 5 3,808 120,028 37,527 2,217 34,866 27,403 6,672 11,740 3,875 9,242 203,568 12,326 81,299 172,078 198,770 38,585 50,923 36,791 219,219 73,716 282,530 17 3,051 196,623 27,382 1,134 35,662 28,912 4,282 11,492 10,215 229,263 40,144 265 88,249 171,434 204,808 87,033 2,380 64,023 39,534 248,067 70,438 235,625 2 1,524 225,961 84,590 759 35,711 7,546 15,631 7,328 268,981 12,251 24,616 41,042 84,391 169,351 210,951 125,476 96,890 43,119 13,309 241,263 82,995 331,872 5 159 230,605 152,399 80 33,756 1,173 13,261 7,338 302,934 Source: Source: Ward s Lang Auto, Research SEMA 73

Vehicle Information New-Vehicle Sales Car Middle Car (cont.) 2008 2009 2010 2011 2012 Subaru Legacy Suzuki Kizashi Toyota Camry Toyota Prius Volkswagen CC Volkswagen Passat Volvo 30-Series Volvo 40-Series TOTAL MIDDLE CARS 22,614 436,617 158,884 2,105 30,034 4,299 9,687 2,765,707 30,974 71 356,824 139,682 23,872 11,138 4,267 7,957 2,212,714 38,725 6,138 327,804 140,928 27,987 12,497 3,906 5,623 2,279,618 42,401 6,944 308,510 136,463 29,502 22,835 3,471 2,984 2,455,630 47,127 5,566 404,886 200,926 21,646 117,023 2,827 51 3,032,912 Source: Ward s Auto, SEMA New-Vehicle Sales Car Large Car 2008 2009 2010 2011 2012 Buick Lucerne Chevrolet Caprice Chrysler 300 Series Dodge Charger Ford Crown Victoria Ford Taurus Kia Amanti Mercury Grand Marquis Nissan Maxima Toyota Avalon TOTAL LARGE CARS 54,930 62,352 97,367 48,557 52,667 3,614 29,766 47,072 42,790 462,214 31,292 38,606 60,651 33,255 45,617 3,704 24,783 53,351 26,935 324,563 26,459 37,116 75,397 33,722 68,859 281 28,543 47,946 21,305 339,665 20,358 880 36,285 70,089 46,725 63,526 8 248 238,119 971 3,734 70,747 82,592 4,429 74,375 236,848 Source: Ward s Auto, SEMA New-Vehicle Sales Car Luxury Car 2008 2009 2010 2011 2012 Acura RL Acura TL Acura TSX Audi A3 Audi A4 Audi A5 Audi A6 Audi A7 Audi A8 Audi R8 Audi TT BMW 1-Series BMW 3-Series BMW 5-Series BMW 6-Series 4,517 46,766 31,998 4,759 43,344 6,282 11,956 2,825 900 4,486 12,018 112,464 45,915 6,533 2,043 33,620 28,650 3,874 37,070 9,800 6,786 1,463 699 1,935 11,182 90,960 40,109 3,549 2,037 34,049 32,076 6,558 34,672 16,379 8,675 1,521 799 1,531 13,132 100,910 39,488 2,418 1,096 31,237 30,935 6,561 35,234 15,385 11,124 6,270 5,700 1,145 2,236 8,832 94,371 51,491 3,903 379 33,572 28,865 7,205 35,415 17,270 18,998 8,598 6,002 802 2,226 7,689 99,602 56,798 8,208 Source: Source: Ward s Lang Auto, Research SEMA 74

Vehicle Information New-Vehicle Sales Car Luxury Car (cont.) 2008 2009 2010 2011 2012 BMW 7-Series BMW Z4 Buick LaCrosse Cadillac ATS Cadillac CTS Cadillac DTS Cadillac STS Cadillac XLR Cadillac XTS Chevrolet Corvette Chevrolet Volt Dodge Viper Honda S2000 Hyundai Azera Hyundai Equus Hyundai Genesis Infiniti G Infiniti M Jaguar XF Jaguar XJ Jaguar XK Lexus CT Lexus ES Lexus GS Lexus HS Lexus IS Lexus LFA Lexus LS Lexus SC Lincoln MKS Lincoln MKZ Lincoln Town Car Mercedes C-Class Mercedes CL Mercedes CLK Mercedes CLS Mercedes E-Class Mercedes S-Class Mercedes SL Mercedes SLK Mercedes SLS Nissan GT-R Nissan Leaf Nissan Maxima Porsche 911 12,276 5,879 36,873 58,774 30,479 14,790 1,250 26,971 0 1,172 2,538 6,167 64,181 15,618 8,578 2,452 2,459 64,135 15,759 0 49,432 20,255 1,986 12,982 30,117 15,653 72,471 2,733 10,844 5,775 38,576 17,787 5,464 4,941 1,730 8,324 9,254 3,523 27,818 38,817 17,330 6,037 787 13,934 0 482 795 21,889 47,174 8,501 8,487 1,161 2,274 48,485 7,430 6,699 38,077 11,334 720 17,174 22,081 11,375 52,427 1,220 7,150 2,527 43,072 11,199 4,025 2,566 1,534 6,839 12,253 3,804 61,178 45,656 18,640 4,473 188 12,624 326 392 85 196 29,122 58,143 14,618 6,925 4,278 2,137 48,652 7,059 10,663 34,129 12,275 328 14,417 22,535 11,264 58,785 1,035 585 2,135 60,922 13,608 2,385 1,980 499 877 19 12,623 5,737 11,299 3,479 58,474 55,042 11,589 3,338 12 13,164 7,671 197 5 3,193 32,998 58,246 10,818 5,303 5,235 1,738 14,381 40,873 3,746 2,864 29,669 62 9,568 18 12,217 27,529 9,460 69,314 943 6 5,665 62,736 12,258 1,449 3,220 722 1,294 9,674 58,737 6,016 11,098 2,751 57,076 7,008 46,979 465 164 15,049 14,132 23,461 20 8,272 3,972 33,973 59,844 9,130 5,526 4,852 1,633 17,673 56,158 22,160 649 27,708 46 8,345 2 12,524 28,053 1,001 81,697 723 1 8,065 65,171 11,794 4,899 4,595 800 1,188 9,819 59,349 8,528 Source: Lang Research Source: Ward s Auto, SEMA 75

Vehicle Information New-Vehicle Sales Car Luxury Car (cont.) 2008 2009 2010 2011 2012 Porsche Boxster Porsche Cayman Porsche Panamera Saab 9-3 Saab 9-5 Toyota Avalon Volkswagen Eos Volvo 50-Series Volvo 60-Series Volvo 70-Series Volvo 80-Series TOTAL LUXURY CARS 2,982 3,513 15,167 2,538 12,837 1,856 8,966 8,787 11,038 1,028,672 1,909 1,966 1,247 5,428 1,034 7,204 2,155 5,895 6,986 8,331 798,622 2,177 1,322 7,741 4,533 811 7,085 6,690 1,720 1,437 5,263 7,224 937,798 1,773 1,377 6,879 3,847 1,496 28,925 7,533 555 21,282 4,956 4,735 1,053,100 2,894 462 7,614 647 413 29,556 6,214 23,356 4,441 3,277 1,146,856 TOTAL CARS 6,769,107 5,400,890 5,635,432 6,089,403 7,241,900 Source: Ward s Auto, SEMA New-Vehicle Sales CUV Small Cross/Utility 2008 2009 2010 2011 2012 Chevrolet HHR Chrysler PT Cruiser Honda Element Hyundai Tucson Jeep Compass Jeep Patriot Kia Sportage MINI Countryman Mitsubishi Outlander Sport Nissan Juke Subaru XV Volkswagen Tiguan TOTAL SMALL CUV 96,053 49,816 26,447 19,027 25,349 55,654 32,754 8,664 313,764 70,842 17,939 14,884 15,411 11,739 31,432 42,509 13,903 218,659 75,401 9,440 14,247 39,594 15,894 38,620 23,873 1,690 8,639 20,946 248,344 37,012 1,328 11,534 47,232 47,709 54,647 47,463 16,683 16,443 35,886 25,990 341,927 21 3 48,878 40,235 62,010 36,357 21,012 18,091 36,358 7,396 31,731 302,092 Source: Ward s Auto, SEMA New-Vehicle Sales CUV Middle Cross/Utility 2008 2009 2010 2011 2012 Chevrolet Captiva Chevrolet Equinox Dodge Journey Ford Edge Ford Escape GMC Terrain Honda Crosstour Honda CR-V 67,447 47,097 110,798 156,544 197,279 86,148 53,826 88,548 173,044 14,033 2,564 191,214 149,979 48,577 118,637 191,026 60,519 28,851 203,714 7,038 193,274 55,155 121,702 254,293 83,179 17,974 218,373 36,935 218,621 79,563 127,969 261,008 97,786 20,848 281,652 Source: Ward s Auto, SEMA 76

Vehicle Information New-Vehicle Sales CUV Middle Cross/Utility (cont.) 2008 2009 2010 2011 2012 Honda Pilot Hyundai Santa Fe Hyundai Veracruz Kia Rondo Kia Sorento Mazda CX-5 Mazda CX-7 Mazda Tribute Mazda5 Mercury Mariner Mitsubishi Endeavor Mitsubishi Outlander Nissan Murano Nissan Rogue Pontiac Torrent Saturn Vue Subaru Forester Subaru Outback Toyota Highlander Toyota RAV4 Toyota Venza TOTAL MIDDLE CUV 96,746 70,994 11,004 28,645 29,699 26,811 10,806 22,021 32,306 5,938 13,471 71,401 73,053 20,625 81,676 60,748 44,262 104,661 137,020 1,474 1,492,854 83,901 80,343 10,210 14,206 24,460 20,583 5,525 18,488 28,688 3,228 10,283 52,546 77,222 9,638 28,429 77,781 55,356 83,118 149,088 54,410 1,472,429 102,323 76,680 8,741 3,588 108,985 28,788 3,637 15,683 29,912 4,294 12,500 53,999 99,515 68 3,201 85,080 93,148 92,121 170,877 47,321 1,840,981 116,297 74,391 9,146 47 130,235 35,641 2,696 19,155 9,658 9,788 53,626 124,543 76,196 104,405 101,252 132,237 38,904 1,989,205 114,848 71,016 8,232 119,597 43,319 11,326 502 14,640 501 7,750 51,675 142,349 76,347 117,553 121,055 171,877 43,095 2,240,064 Source: Ward s Auto, SEMA New-Vehicle Sales CUV Large Cross/Utility 2008 2009 2010 2011 2012 Buick Enclave Chevrolet Traverse Ford Flex Ford Taurus X GMC Acadia Mazda CX-9 Nissan Pathfinder Saturn Outlook Suzuki XL7 TOTAL LARGE CUV 44,706 9,456 14,457 23,112 66,440 26,100 25,340 22,554 239,510 43,150 91,074 38,717 6,106 53,820 21,132 13,115 4,357 273,426 55,426 106,744 34,227 12 68,295 28,908 2,649 313 296,574 58,392 107,131 27,428 79,288 34,421 48 306,708 56,703 85,606 28,224 78,280 24,442 7,939 12 281,206 Source: Ward s Auto, SEMA New-Vehicle Sales CUV Luxury Cross/Utility 2008 2009 2010 2011 2012 Acura MDX Acura RDX Acura ZDX Audi Allroad Audi Q5 45,377 15,845 31,178 10,153 79 13,790 47,210 14,975 3,259 23,518 43,271 15,196 1,564 24,908 50,854 29,520 775 3,115 28,671 Source: Ward s Auto, SEMA 77

Vehicle Information New-Vehicle Sales CUV Luxury Cross/Utility (cont.) 2008 2009 2010 2011 2012 Audi Q7 BMW X1 BMW X3 BMW X5 BMW X6 Cadillac SRX Infiniti EX Infiniti FX Infiniti JX Land Rover Evoque Lexus RX Lincoln MKT Lincoln MKX Mercedes GL Mercedes M-Class Mercedes R-Class Porsche Cayenne Saab 9-4X Subaru Tribeca Volkswagen Touareg Volvo XC60 Volvo XC70 Volvo XC90 TOTAL LUXURY CUV 13,209 17,622 31,858 4,548 16,156 12,873 12,660 84,181 29,076 23,328 34,320 7,733 10,975 6,755 9,489 18,980 388,230 7,299 6,067 27,071 4,787 20,237 7,950 11,024 93,379 2,580 21,433 36,956 25,799 2,825 5,930 4,392 9,262 5,825 10,757 354,381 7,976 6,075 35,776 6,257 51,094 8,312 10,420 95,790 7,435 21,932 40,889 29,698 2,937 3,245 2,472 4,713 12,030 6,626 10,119 449,689 8,998 27,793 40,547 6,192 56,905 6,030 9,939 2,244 82,595 5,024 23,395 49,449 35,835 2,385 12,978 267 2,791 7,535 12,932 5,716 10,609 494,989 11,008 8,947 35,173 44,445 6,749 57,485 3,495 10,424 21,674 8,901 95,381 7,094 25,107 55,406 38,101 1,473 15,545 221 2,075 10,553 19,139 5,513 9,513 606,357 TOTAL CUV 2,434,358 2,318,895 2,835,588 3,132,829 3,429,719 New-Vehicles Sales SUV Source: Ward s Auto, SEMA Small Sport/Utility 2008 2009 2010 2011 2012 Dodge Nitro Jeep Liberty Jeep Wrangler Suzuki Vitara TOTAL SMALL SUV 36,368 66,911 84,615 11,936 229,529 17,443 43,503 82,044 7,557 175,007 22,618 49,564 94,310 4,478 171,753 24,434 66,684 122,460 4,980 218,558 3,269 75,483 141,669 4,954 225,375 Source: Ward s Auto, SEMA New-Vehicles Sales SUV Middle Sport/Utility 2008 2009 2010 2011 2012 Chevrolet Trail Blazer Dodge Durango Ford Explorer GMC Envoy Jeep Commander Jeep Grand Cherokee Kia Borrego Mercury Mountaineer Nissan Pathfinder Nissan Xterra Toyota 4Runner Toyota FJ Cruiser TOTAL MIDDLE SUV 74,878 21,420 78,439 23,876 27,694 73,678 1,869 10,596 33,555 33,579 47,878 28,668 436,587 8,829 3,521 52,190 4,857 12,655 50,328 10,530 5,169 18,341 16,455 19,675 11,941 211,042 218 572 60,687 84 8,115 84,635 9,835 5,791 21,438 20,523 46,531 14,959 272,816 33 51,697 135,704 5 105 127,744 429 25,935 18,221 44,316 13,541 416,531 42,589 164,207 154,734 34,682 17,222 48,755 13,656 475,845 Source: Ward s Auto, SEMA 78

Vehicle Information New-Vehicle Sales SUV Large Sport/Utility 2008 2009 2010 2011 2012 Chevrolet Suburban Chevrolet Tahoe Chrysler Aspen Ford Expedition GMC Yukon GMC Yukon XL Nissan Armada Toyota Sequoia TOTAL LARGE SUV New-Vehicle Sales SUV 54,058 91,578 22,254 55,123 39,064 26,404 15,685 30,693 356,279 41,055 73,254 5,996 31,655 29,411 16,819 9,903 16,387 228,001 45,152 75,675 30 37,336 28,781 23,797 19,344 13,848 244,535 49,427 80,527 40,499 34,250 25,223 18,331 13,022 262,478 48,116 68,904 38,062 27,818 23,427 18,072 13,151 237,550 Source: Ward s Auto, SEMA Luxury Sport/Utility 2008 2009 2010 2011 2012 Cadillac Escalade Cadillac Escalade ESV Hummer H2 Hummer H3 Infiniti QX56 Land Rover LR2 Land Rover LR4 Land Rover Range Rover Sport Land Rover Range Rover Lexus GX Lexus LX Lincoln Navigator Mercedes G-Class Porsche Cayenne Saab 9-7X Toyota Land Cruiser TOTAL LUXURY SUV 23,947 11,054 6,095 21,373 7,657 5,618 0 11,668 8,393 16,424 7,915 14,836 931 11,216 3,660 3,801 165,403 16,873 6,588 1,513 7,533 6,440 4,433 867 11,364 7,312 6,235 3,616 8,057 662 7,735 2,218 2,261 100,431 16,118 8,674 151 3,661 11,918 3,649 7,122 12,347 8,746 16,450 3,983 8,245 919 5,098 102 1,807 112,059 15,079 8,388 13,428 2,778 7,983 15,333 9,761 11,609 3,167 8,018 1,191 1,662 98,506 12,615 8,083 15,310 3,113 7,316 16,491 7,843 11,039 5,005 8,371 1,330 2,895 99,411 TOTAL SUV 1,187,798 714,481 801,163 996,073 1,038,181 New-Vehicle Sales Van Source: Ward s Auto, SEMA Van 2008 2009 2010 2011 2012 Chevrolet Express Chevrolet Uplander Chrysler Town & Country Dodge Caravan Ford Econoline/Clubwagon Ford Transit Connect GMC Savana Honda Odyssey Kia Sedona Mercedes Sprinter Van Nissan NV Nissan Quest Ram Cargo Van Toyota Sienna Volkswagen Routan TOTAL VAN 86,986 40,456 118,563 123,749 124,596 0 22,437 135,493 26,915 18,252 115,944 3,387 840,619 54,302 1,758 84,558 90,666 85,735 8,834 12,164 100,133 27,398 8,437 84,064 14,681 583,362 59,753 76 112,275 103,323 108,258 27,405 13,942 108,182 21,823 8,559 177 98,337 15,961 678,324 71,943 94,320 110,862 116,874 31,914 17,268 107,068 24,047 16,577 6,444 12,199 691 111,429 12,473 734,109 76,808 111,744 141,468 122,423 35,216 20,650 125,980 17,512 20,929 10,179 18,275 7,075 114,725 10,483 833,467 Source: Ward s Auto, SEMA 79

Vehicle Information New-Vehicle Sales Pickup Small Pickup 2008 2009 2010 2011 2012 Chevrolet Colorado Ford Ranger GMC Canyon Honda Ridgeline Mitsubishi Raider Nissan Frontier Ram Dakota Suzuki Equator Toyota Tacoma TOTAL SMALL PICKUP 54,346 65,872 14,974 33,875 2,935 44,997 26,044 13 144,655 392,043 32,413 55,600 10,107 16,464 1,944 28,415 10,690 2,221 111,824 270,348 24,642 55,364 7,992 16,142 9 40,427 13,047 1,447 106,198 265,278 31,026 70,832 9,590 9,759 51,700 12,156 2,127 110,705 297,895 36,840 19,366 8,735 14,068 55,435 490 1,966 141,365 278,265 Source: Ward s Auto, SEMA New-Vehicle Sales Pickup Large Pickup 2008 2009 2010 2011 2012 Cadillac Escalade EXT Chevrolet Avalanche Chevrolet Silverado Ford F-Series GMC Sierra Nissan Titan Ram Pickup Toyota Tundra TOTAL LARGE PICKUP 4,709 35,003 465,065 476,469 168,544 34,053 240,454 137,249 1,566,177 2,423 16,432 316,544 392,112 111,842 19,042 173,066 79,385 1,110,993 2,082 20,515 370,135 502,125 129,794 23,416 194,175 93,309 1,335,551 2,036 20,088 415,130 552,647 149,170 21,994 237,236 82,908 1,481,209 1,934 23,995 418,312 607,854 157,185 21,576 283,056 101,621 1,615,533 TOTAL PICKUP 1,958,220 1,381,341 1,600,829 1,779,104 1,893,798 Source: Ward s Auto, SEMA TOTAL CARS 6,769,107 5,400,890 5,635,432 6,089,403 7,241,900 TOTAL LIGHT-TRUCKS 6,425,634 5,000,792 5,919,085 6,645,021 7,198,160 Total New Vehicles 13,194,741 10,401,682 11,554,517 12,734,424 14,440,060 Source: Ward s Auto, SEMA 80

Vehicle Information Vehicle Registration The following chart shows the number of vehicles in operation for each car type and decade of the vehicle model. Data for vehicles manufactured before the 1970s was unavailable. Vehicles Registrations Vehicle Segment by Decade of Model Year Cars Alt Power - Electric Car Alt Power - Hybrid Car Mid Range Car - Lower Mid Range Car - Premium Mid Range Car - Standard Small Car - Budget Small Car - Economy Sport Car - Premium Sport Car - Touring Sport Car - Ultra Luxury Sport Car - Upper Premium Traditional Car Upscale - Luxury Upscale - Near Luxury Upscale - Premium Upscale - Ultra Other 1970s 124,892 79,153 163,380 107,323 88,017 128,214 159,836 13,217 32,597 97,077 36,504 271 1980s 263,736 190,258 662,217 71,212 267,621 267,611 496,587 3,239 65,872 185,379 492,915 264,528 9,883 9,998 2,558 1990s 2 3,677,347 2,612,024 8,180,155 524,169 4,575,589 594,502 1,938,123 37 188,978 1,775,566 2,374,997 2,072,699 73,096 10,503 2,321 2000s 1,059,621 12,099,021 6,737,554 15,976,933 1,519,942 12,982,940 1,254,726 2,980,992 3,607 311,383 1,963,092 3,151,858 5,739,567 322,061 58,934 11,791 2010s 18,987 999,822 4,129,607 1,497,405 4,554,470 1,073,559 4,596,281 212,831 1,014,480 2,880 50,289 88,492 694,362 1,573,703 99,272 23,878 4,342 Light-Trucks 1970s 1980s 1990s 2000s 2010s Alt Power - Hybrid Truck CUV - Entry Level CUV - Mid Range CUV - Premium Pickup - Fullsize Pickup - Small SUV - Entry Level SUV - Large SUV - Lower Mid Range SUV - Premium Large SUV - Upper Mid Range Van - Fullsize Van - Mini 755,920 72,018 16,477 107,935 12,608 15,111 48,967 969 515 2,408,668 1,204,473 242,648 342,660 178,641 18,951 494,906 102,283 396,294 68,637 127,277 9,804,875 5,237,640 1,732,800 1,981,500 4,496,349 210,038 252,296 1,685,362 3,464,996 365,052 7,051,775 4,488,737 2,537,350 19,143,972 5,944,383 4,088,762 5,334,021 8,390,571 1,264,647 1,465,093 2,425,482 8,811,855 98,858 4,232,105 2,674,819 1,380,842 4,352,835 873,385 1,340,515 776,922 1,090,491 507,192 44,108 563,518 1,703,697 Sources: Experian, SEMA 81

SEMA Market Research SEMA Market Research As a member benefit, SEMA conducts research on the $31 billion specialty equipment market. SEMA market research projects help members understand sales trends, consumer needs and the influence of economic and auto industry changes. The majority of SEMA Market Research reports are available for download to SEMA members at no charge. Other research reports available for download: SEMA Market Update Regularly published report that tracks industry and economic trends affecting the $31 billion specialty equipment industry. Each update contains current topics that provide SEMA members with new research or information sources to better understand changes in the industry. Financial Benchmarking Report The monthly SEMA Financial Benchmarking Program allows participants to measure the performance of their company against industry benchmarks in areas such as gross margin, marketing expenses, inventory turns, product returns and more. SEMA Consumer Demand Index This monthly report measures specialty equipment purchase intentions of consumers [both enthusiast and mainstream] in the coming quarter. Consumer Research Reports Consumer research reports covering a variety of industry issues are available for download. Examples of consumer research available include vehicle owner reports [i.e. pickups] and enthusiast lifestyle reports. Visit www.sema.org/research for more information on these reports. 82