The shift in consumer preferences indicates that the sales of small crossover sport utility vehicles may take the plunge and touch new heights in 2015. Reports claim that CUVs will overtake sedan cars available in the new car business for the first time. The overall sales rose by 15.6% in 1Q2015. It happened due to the improved sales figure of Honda Motor Co Ltd (ADR)(NYSE:HMC)‘s Honda CR-V, Chevrolet Equinox, Ford Escape and Toyota RAV4.
How 2015 Looks From Here:
Year 2015 is going to be an exciting year for the automotive sector. There are a lot of new models to be launched in the coming months with quite a few unrevealed models to be headed to dealers, which will be made available in 2016. If taken into consideration the historical prices and the ongoing trend, the overall growth in the automotive sector seems to be around 15.9% in the new vehicle category. If this increment is compared with the year 2000, one can see a straight 12.4% boost. It was the time when SUVs were not so popular in the market and accounted for not more than 3.2% of industry sales.
According to John Krafcik, President, TrueCar, the shift in car buyers’ preferences to utilities from Sedan cars is a true secular trend that is seen in the demand data of TrueCar. A lot of automakers have understood this shift in the trend and preferences of consumers, thus, changed their offerings accordingly. They have not only made a lot of cash, but also taken their business to newer heights.
In today’s time, consumers want to get the best product for the money they spend, which is why, the popularity of compact and subcompact crossovers is elevating day by day. Both youngsters, as well as aged people, like to have small crossovers over compact sedans. The newest models that are to hit the market in the near future include Mazda CX-3, BMW X4, Honda HR-V, and Fiat 500 X. Market experts anticipate these models and many other such crossovers to break previous sales records in 2016.