Despite the recent boom in crossovers and SUVs, sedans and other non-SUV and non-crossover models continue to make up the overwhelming majority of the US market.
The Future of Sedans
Sedans are used for transportation, hauling goods, and long trips. But with the improving safety of cars, it’s inevitable that sedans will become obsolete. Specifically, many people are switching to electric cars because these are more environmentally friendly, have better acceleration, have no exhaust emissions, and are much cheaper. It’s not just how safe cars are that will kill the demand for sedans – it’s also the design of the car – one example is that sedans are much wider than necessary to accommodate a second side-door on the passenger side.
The Worldwide Market for Sedans
Cars are typically viewed as one of the most important purchases that anybody could ever make, and for good reason. After all, cars have always been a way to move around from point A to point B. However, car sales have been steadily dropping in recent years. The worldwide market for sedans is expected to decrease by 2.6% annually over the next ten years as consumers shift towards SUVs, pickup trucks and crossovers.
What is Driving Demand for SUVs?
It’s not just about horsepower or performance. The major factor is probably how psychologically safe drivers feel in their vehicles. The demand for SUVs has been on a steady increase in recent years, and many auto manufacturers have taken note. The allure of SUVs is the ease of maneuvering in traffic jams, which makes them a popular option for drivers who might otherwise get stuck behind a slower driver. In addition, SUVs are often more spacious and can be purchased at a lower price point than traditional sedans.
The Economics behind the SUV Trend
Automobiles are changing, with SUV’s becoming more common to buy. This not only pushes the car industry, but also the gas prices to increase. This trend is mainly driven because of fuel efficiency standards that are enforced to make cars more efficient and environmentally friendly.
Why Buying an SUV is Not Always Better
The Ford Escape, Toyota RAV4, Nissan Rogue, Kia Sorento and Chrysler Pacifica (and many others) are becoming the new vernacular of today’s modern American ute. Americans love these body-on-frame SUVs that offer not only space for growing families but also safety features like automatic emergency braking. However, utes are not the only way to go. A sedan can provide all of the same family-friendly features at a more affordable price point. But you often hear the call of an SUV over a sedan because it “makes them feel safe.”
Most car companies have been focused on designing SUVs and luxury cars because these vehicles command a higher price tag. They have not been designing sedans because these vehicles do not have the same appeal or need. However, there is a future for sedans. As more people continue to trade in their SUVs and luxury cars for a sedan, more production will be made available to compete with the SUV’s that are currently dominating the market.