Vehicle Benchmarking Explained: Process & a Preliminary Design Example

What is vehicle benchmarking?

Vehicle benchmarking is the structured process automakers use early in a vehicle program to compare a new or redesigned vehicle against its closest competitors and reference vehicles. Rather than copying a rival’s design, benchmarking gives engineering teams objective data — dimensions, performance, features — to set realistic, competitive targets for the vehicle they’re developing.

The process typically starts by defining a competitive set: the vehicles a new model will actually be cross-shopped against. Teams then compare exterior and interior dimensions, seating and cargo capacity, and performance across that set, alongside customer needs research, to establish the preliminary design specifications the program will be measured against. The example below walks through what that process looks like applied to a hypothetical redesign of a full-size SUV as a battery-electric vehicle (BEV).

Example: benchmarking a full-size electric SUV

As a worked example, consider a hypothetical redesign of the Toyota Sequoia, a full-size sport utility vehicle (SUV). An SUV combines a road-going passenger car with the features of an off-road vehicle; in the US, SUVs are categorized as “light trucks,” which subjects them to more lenient regulations than passenger cars.

In this example, the next-generation full-size SUV is planned for an August 2025 release as a MY26 model, sold only in North America (the US and Canada). It would use a traditional body-on-frame design, positioned as an economy SUV starting around $51,000. Based on current market trends, the program targets a fully electric full-size SUV — one of the first in its class. To benchmark the vehicle and set realistic targets, three competitors would make up the competitive set.

Competitive set

1. Chevy Tahoe
2. Ford Expedition
3. Nissan Armada

These three vehicles were selected because they all outsell the Toyota Sequoia in the full-size SUV segment. Refer to Table 1.1, US Quarterly Large SUV Sales Numbers [1], below.

Like the current-generation Sequoia, the redesigned vehicle would seat seven passengers comfortably, with more total cargo room than the outgoing model. Because the redesign moves to a BEV platform, the program would also need to reference the propulsion system of the closest-sized BEV on the market to make informed powertrain decisions — in this case, the Tesla Model Y, referenced specifically for its vehicle dynamics and aerodynamic performance.

Reference vehicle:

1. Tesla Model Y (vehicle dynamics & aerodynamics)

Why define a target customer?

Having a clear target customer in mind makes it easier to make the right design decisions for a new vehicle. In this example, the target customer profile is:

A parent between 40 and 50 years old with at least two kids, who is adventurous and enjoys taking road trips in an SUV. Their hobbies include boating, riding jet skis, and horseback riding, which is why they’d be drawn to this vehicle’s occasional towing capability. They’d choose this vehicle for its space, comfort, and versatility — primarily for daily commutes or road trips, but with the peace of mind of being able to go off-road if needed. They’re well established in their career, hold at least a bachelor’s degree, and have a household income around $80,000 a year. This customer wants to be seen as a “fun” parent rather than driving a minivan, and is forward-thinking enough to want a vehicle that’s also environmentally friendly. See Figure 1.B, Customer Characteristics, below.

What are customer needs?

Customer needs are the underlying reasons a customer buys a product or service — the drivers that guide their purchase decision. For this example, the target customer’s needs include the following.

The customer needs enough room to fit a family of four plus potential guest passengers, which calls for a minimum of seven seats (including a third row). Occupants need adequate headroom and space to sit comfortably, and the seats behind the first row should fold to free up storage for both leisure and occupational use. The vehicle needs enough cargo capacity to hold four large suitcases and four small carry-on bags, and must be capable of towing at least 1,500 lbs — enough for a small boat, jet ski, or horse carriage. It also needs a suspension system capable of handling occasional off-road driving. Because the target customer is environmentally conscious, an electric powertrain is a natural fit, provided it offers enough range for long drives and a short enough recharge time to top up overnight. Finally, the vehicle must meet FMVSS structural performance requirements to achieve a 5-star safety rating.

Major improvements

• Reducing vehicle emissions to zero (switching to BEV)
• Improved aerodynamic performance (0.32 Cd, best in class for full-size SUVs)
• 400 miles of range per charge
• Improved, user-friendly smart infotainment
• Improved third-row legroom

Challenges

The biggest challenge a program like this would face is that switching to an all-electric SUV negatively affects towing capacity, creating a tradeoff between cargo volume, second- and third-row headroom, and aerodynamics — all while managing the added mass of high-voltage batteries. Reducing overall vehicle mass is a tradeoff engineers navigate constantly when electrifying larger platforms; see our guide to lightweight materials in automotive design for how automakers typically approach it.

Exterior and interior comparison

With the competitive set and customer needs established, the next step is measuring the vehicle directly against its competitors. Exterior and interior dimensions, seating, and cargo capacity are compared side by side to identify where the new vehicle needs to lead, match, or intentionally trail the competition.

Exterior comparison

Interior comparison

Interior benchmarking like this feeds directly into vehicle package engineering, since occupant space and component layout are set relative to how competitors package the same segment.

Vehicle characteristics

Gathering key attributes and dimensions across the full competitive set lets a program make informed assumptions about where the new vehicle should land, and identify areas where it can differentiate itself from competitors. See Table 1.2, Vehicle Characteristics, for the full list of vehicle attributes, and Figure 1.C below for how seating arrangement and legroom compare across the competitive set.

Seating arrangements

Seating and occupant space targets set this way tie directly into occupant package design, and into the customer-needs prioritization work covered in Quality Function Deployment (QFD).

Customer needs summary

Vehicle attributes

Vehicle systems

Why would it sell?

Once benchmarking data and customer needs are translated into preliminary design specifications, the program can build the business case for why the vehicle would succeed against its competitive set — tying attributes like range, towing, and interior space directly back to the target customer defined earlier. This same logic carries into later program stages like the technology and vehicle validation plan, where those specifications get tested and confirmed.

Reference

1. https://www.goodcarbadcar.net/2020-us-large-suv-sales-figures/