Compact car sales to experience surge in 2011, due to higher gasoline prices

Article by Christian Andrei, on January 3, 2011

With the rising prices of fuel, compact car sales are also expected to increase in 2011. Last week, the average U.S. gasoline price reached $2.98 a gallon. It appears that automakers have anticipated the demand.

The new 2011 Chevrolet Cruze and the redesigned 2011 Hyundai Elantra are on sale now. Meanwhile, the redesigned 2012 Ford Focus and redesigned 2012 Honda Civic will go on sale next spring.

These entries are vital to automakers' new car sales, which rose by 6% through November 2010 while the overall market improved by 11%.

For the first 11 months of 2010, Honda sold 231,955 Civics, a 2% drop when compared to the same period in 2009. Ford’s sales were up 9% to 159,679 Focus units. And Hyundai sold 119,150 Elantras, 22% higher than sales in 2009.

With each of these compact cars offering peppy engines, the latest technology gadgets and competitive pricing, the small car segment is bound to be a heated one.

As long as fuel prices either increase or hold steady, there will be a demand for these compact cars, many of which boast to exceed a highway fuel economy of 40 mpg. [via autonews - sub. required]

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