Long after the first SUV gold rush in the United States, the Detroit Three are gearing up for a second gold rush, this time in China.
Automotive News reports SUVs and crossovers have snagged 19 percent of the local market in 2013 as the once-dominant luxury sedan market fell from 47 percent in 2000 to 15 percent. General Motors forecasts as many as 7 million SUVs will leave the showroom by 2020, with president Dan Ammann noting that 60 percent of first-time buyers in China bought an SUV last year. Further, Ford credits crossovers for a sales surge of 49 percent in 2013, pushing Toyota out of the No. 5 slot in a local market that views SUVs and crossovers as being, in the words of Chevrolet dealer He Sei, “sportier, more fashionable and more youthful” than other vehicles.
To capitalize upon the upcoming boom, GM brought the Chevrolet Trax to last week’s Beijing Motor Show with plans to add 10 SUVs during the next five years, while Ford introduced concept versions of the body-on-frame Everest and Lincoln MKX crossover, both of which will soon see production. Finally, Fiat Chrysler Automobiles will resume Jeep production in China through a joint venture with Guangzhou Automobile Group Company, with three models due in 2015.
Meanwhile, Lexus, Audi, Hyundai, Volkswagen and Citroen are following the Detroit Three’s lead into the Chinese SUV/crossover market, bringing a number of concepts and production-ready vehicles to Beijing. That said, they will have a hard battle against the three U.S. automakers, as SUVs and crossovers have been their bread and butter since the first rush in the early 1990s through the late 2000s.