Governance - Index Facts - EM EV Index | Exponential Markets
Governance
Index Name
Exponential Used Electric Vehicle Index
Methodology
The Exponential Used Electric Vehicle Index is a Hedonic Price Index that utilizes a sophisticated and proven machine learning technique called Gradient Boosting to implement the hedonic model.
This model enables the identification and quantification of the impact of various factors on the value of used vehicles over time, resulting in an accurate measure of their change in value. The use of machine learning enhances the accuracy of the model and allows for the measurement of price changes for one vehicle to be informed by the price changes for similar vehicles. Meanwhile, the use of Fisher weighting enables the index to adapt to a changing mix. Together, these design choices allow for greater data efficiency, giving insight into the long tail of used vehicles with less than 10 transactions per week and unlocking the ability to more quickly respond to true signals in the marketplace. Overall, Exponential's Index provides a robust and reliable measurement of the changes in used vehicle prices, informed by the latest advances in machine learning and statistical methods.
Data Sources
The underlying spot market data utilized for the construction of the Exponential Used Vehicle Indices is sourced from the National Auto Auction Association (NAAA) Services Corporation AuctionNet data. This data represents approximately 80% of all automotive auction activity in the U.S. and is considered the premier source of used vehicle transactional wholesale data for the automotive ecosystem.
Base Date
January 15, 2020, publication date representing transactions from first full week of January 2020
Base Value
100
Publishing Frequency
Weekly by 9 AM ET on Thursdays
Index Administrator
Exponential Indices, LLC
Availability
Exponential Markets
Contact Information
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