Automotive Industry Glossary: Key Metrics, Terms & Definitions

Editor’s note: Some of the linked references in this article reflect historic data used for examples or demonstrative purposes. For the most up-to-date forecasts explore our automotive datasets, and for the latest news, insights, and analysis, from S&P Global Mobility, subscribe to our newsletters.

First Pass Yield (FPY %)

• What it is: Percentage of products meeting quality standards without rework.
• Why it matters: High FPY reflects production quality and reduces cost.

Inventory Turnover (times/year)

• What it is: Frequency of inventory being sold and replaced in a year.
• Why it matters: Higher turnover indicates efficient stock management and better cash flow.

Company Market Share

• What it is: A company’s or brand’s portion of total market sales within a defined segment, region, or industry. Market share can also be measured by product line, technology type, or geography.
• Why it matters: Market share reveals how a company or product is performing relative to competitors. It helps assess competitive strength, identify growth opportunities, and understand whether you’re outperforming or lagging behind the market average.

Below is an A-to-Z guide to essential automotive industry terms, with opportunities to connect each definition to relevant S&P Global Mobility solutions.

This glossary breaks down many core metrics and terms you’ll hear every day in the industry. Although it is comprehensive, this glossary is not exhaustive.

Existing customers can log into their dashboard and access detailed dictionaries for definitions across the following S&P Global Mobility specific databases:

• Light Vehicle Production Forecasts

• Light Vehicle Sales Forecasts

• Powertrain

• E-Propulsion

• Medium and Heavy Commercial Vehicle (MCHV) forecast services

New to S&P Global Mobility? Request a call from a customer representative to get the most accurate auto industry data and insights to meet your needs.

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

B

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

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

See also: Charging Infrastructure, Energy Usage per Unit, EV Penetration, Range.

Explore more: 

• EV charging trends

• Why Europe is losing the gigafactory race to China
  

• Access battery intelligence and 15 vehicle domains with AutoTechInsight

Support product planning and market entry with the E-Mobility Technology Module, our forward-looking sales-based, analytical tool, designed for you. 

C

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

Regional note: The US definition of a light truck includes vehicles up to about 6 tonnes GVW, while most other markets classify light commercial vehicles below 3.5 tonnes GVW. Outside the US, SUVs are often grouped with passenger cars, and vehicle segmentation follows regional standards to ensure consistent comparisons.

See also: Bodytype, Bodystyle, Segment, Vehicle Classification

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

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

Learn what consumers think about privacy, value, and willingness to pay for connected car services from our 2025 Connect Car Study. 

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

D

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

E

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

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

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

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

For comprehensive insights into the electric vehicle industry and more on market trends, forecasts, and technological advancements across these categories, visit S&P Global Mobility's Electric Vehicle Industry page.

See also: NEV

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

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

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

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

Learn more about how OEMs can navigate the End-of-Life Vehicles Directive.

F

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

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

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

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

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

K

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

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

Light Vehicles: Passenger cars and light trucks. 

M

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

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

• MPG (miles per gallon) is commonly used in the US and UK.
• km/L (kilometers per liter) is used in some Asian markets.
• L/100 km (liters per 100 kilometers) is the standard in many other regions, including Europe, China, and Australia.

MSRP (Manufacturer’s Suggested Retail Price): The price a vehicle manufacturer recommends that a dealer charges for a new vehicle. MSRP serves as a baseline for pricing negotiations, incentives, and promotions but may not reflect the final sale price. Dealers ultimately set the final sale price, and it can be influenced by dealer discounts, regional market conditions, or supply and demand. Go further and read our blog on how pricing teams navigate the growing gap between MSRP and actual transaction prices. 
 

N

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

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

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

Registrations are also a window into mobility preferences and market participation. For example, new vehicle registrations among 18–34-year-olds have declined. Read our analysis on young buyer registration trends for more on the factors behind this shift, including the rising cost of new vehicles, stronger demand for used cars, and changes in life stage milestones.

See also: Global Vehicle Sales, Vehicle Registration Data & Market Insights 

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

O

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

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

P

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

V

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

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

See also: Bodytype, Car/Truck, Gross Vehicle Weight Rating (GVWR), and Light-Duty Vehicle (LDV).

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

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

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

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

W

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

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

X

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

Y

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

Z

Zero-Emission Vehicle (ZEV): A vehicle producing no tailpipe emissions, typically battery-electric or hydrogen fuel cell. Governments increasingly mandate ZEV targets for 2030, accelerating adoption. For example, the shift toward zero-emission buses is transforming EU bus manufacturing and fleet planning. 
 

See also: EV (Electric Vehicle), Vehicle Electrification, Fleet Electrification Rate.