Cloud Theory’s Horizon insights platform organizes and visualizes an enormous amount of information regarding the real-time supply and demand dynamics of the automotive marketplace, but no metric contained within it is more revealing and multi-faceted than our proprietary Inventory Efficiency Index (IEI) score.
This one-number score is elegant in its simplicity. With a benchmark of 100 signifying that relative inventory and vehicle movement are in balance, it is easy to see if a make or model is getting its fair market share given its competitive supply position. And because we can apply this metric at a variety of levels and over time, we are able to uncover opportunities within geographies and segments so that marketing and incentives resources can be deployed where they are needed most.
Take the example of BMW. At first glance and at an overall level, that make is doing well in selling its vehicles efficiently. BMW’s IEI score is at 114 on a national basis, indicating that it is getting more than its fair market share given its inventory situation. But additional insights reveal opportunities and competitive threats to overcome.
First of all, BMW’s IEI score is down from a recent high of 137 in December 2024 and has dropped two months in a row. Secondly, the 3 Series is underperforming the brand’s overall performance, with a score of 95 within the Luxury Mid-Size Sedan segment. And lastly, there are DMAs that are not sharing in the brand’s national strength—namely Atlanta (72) and San Diego (79).
Source: Cloud Theory 2025
Let’s break down these opportunity areas further.
Given the recent decline in inventory efficiency, it is important to identify which models are helping or hurting the brand’s overall prospects. By looking at turn rate changes in recent periods, it is clear that sedans—and in particular, the 3 Series and 7 Series models-–are contributing the most to the drop.
In the case of 3 Series, inventory fell by 3% in the last 30 days but vehicle movement was down by 26%--a clear sign that there are inefficiencies that must be addressed. These supply and demand shifts resulted in a market share drop of 2.46 points despite an inventory share gain of 0.30 points. And which competitor is gaining the most at BMW’s expense? Lexus ES 300h (market share: +2.02, inventory share: +0.85) and Lexus ES350 (market share: +1.21, inventory share: +0.89).
So now let’s take a look at Atlanta and San Diego.
In Atlanta, 3 Series is contributing to that DMA’s woes, with a severe drop in vehicle movement despite a relatively flat inventory position. X5 and 4 Series are also seeing similar shifts.
In San Diego, however, 3 Series is not an issue. Inventory is up 6% and vehicle movement is up even more (+22%). Instead, the issue in that DMA is oriented around the brand’s SUVs, with X5, X3, and X1 seeing sharper declines in movement than in inventory.
In just a few clicks, a Horizon platform user can get a pulse on brand performance, identify models that are contributing to that brand’s strengths or opportunity areas, and pinpoint geographies of interest. This information is available for all makes, all models (and trims), and in all geographies to provide a complete and comprehensive competitive picture of market dynamics. And did we mention that this information is real time?
With these insights, users are empowered to make marketing and incentive allocation decisions and spend valuable resources when, where, and on what they are needed the most.
Elegantly simple, indeed.
