Compact crossovers threaten midsized sedans in the US

Article by Anita Panait, on May 3, 2013

While midsized sedans remain to be the single largest segment in United States auto industry, they now account for a lesser chunk of the overall market, according to a report by Reuters, citing industry executives and analysts. US families now prefer to go about their daily lives in a crossover than in midsized sedans like the Toyota Camry and Honda Accord.

During a call with reporters to talk about US vehicle sales for April 2013, Bill Fay, general manager of the Toyota Division at Toyota Motor Sales USA, remarked that while the midsized sedan segment is still growing year-over-year, it is “nowhere near” its growth in 2012 as the industry was unveiling a lot of new midsized cars. Sales figures of major carmakers in the US in April 2013 show that auto sales in the country are boosted by pickup trucks and sport-utility vehicles. Crossovers – SUVs built of on a car-based platform – have proven to be appealing since they offer extra space for groceries than the typical sedan.

Crossovers – which include Ford Escape, Toyota RAV4 and the Honda CR-V – provide easier access for passenger entry and exit. Carmakers are also making improvements in fuel mileage of crossovers. The increasing appeal of compact crossovers is also attributable to the narrowing price gap between them and midsized sedans. According to Kelley Blue Book, a compact crossover costs just $1,300 more than the typical family sedan.

Excluding state taxes, this may mean less than $20 in monthly payments in some cases. Mustafa Mohatarem, chief economist for General Motors Co. remarked that fundamentally, both midsized sedans and compact crossover serve the family market. He noted that midsized sedans have become smaller and more expensive due to a number of factors. This prompted many consumers to switch to crossovers, since they “satisfy the family needs very well."

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries