How Far and How Fast Has U.S. Passenger Car Market Share Fallen? So Far, and so Fast
37 percent of the new vehicles sold in the United States in the first seven months of 2017 were passenger cars. That’s correct. 63 percent of the new vehicles now sold in America are pickup trucks, SUVs, crossovers, and vans.
But how did we get to this 37-percent basement? When did we get here? How long did it take to get here? And is it really the basement?
Answers: we got here with the rise of crossovers, we began the approach to our current destination in 2013 (though the rate at which we approached has rapidly increased), and we might not be at the end of our journey quite yet.
“This was the harshest move in consumer preference the industry has ever seen,” Toyota executive vice president for North American sales, Bob Carter, tells Wards Auto.
To critics who suggest Toyota, and the industry at large, didn’t see the move coming, Carter points right at the auto industry’s own trend-spotting. “Did the industry see it coming? Yes, or you wouldn’t have what you have today.”
New vehicles in new sectors, such as Toyota’s C-HR and the RAV4 Hybrid, don’t simply fall from the sky. The new vehicles Toyota is selling this year are the fruit of a product cycle that began half a decade ago.
Whatever the cause of the shift — and there are fuel economy regulations and fuel prices and AWD marketing all at play, among other factors — the shift has been noteworthy both for the degree to which traditional passenger cars have lost their hold on the market and because of the speed with which they lost that hold.
Now the mission is to determine whether the shift is complete, whether a 37/63 split represents the basement for passenger cars. Carter has said in the past that the current state of passenger car market share is likely to hold steady.
The investment in Toyota’s Kentucky Camry plant — there are now more workers at the Georgetown plant than ever before — speaks to Toyota’s belief that the car sector has reached bottom.
A five-year trend suggests otherwise.
[Image: Toyota]
Timothy Cain is a contributing analyst at The Truth About Cars and Autofocus.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars.
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- Jeff JMII--If I did not get my Maverick my next choice was a Santa Cruz. They are different but then they are both compact pickups the only real compact pickups on the market. I am glad to hear that the Santa Cruz will have knobs and buttons on it for 2025 it would be good if they offered a hybrid as well. When I looked at both trucks it was less about brand loyalty and more about price, size, and features. I have owned 2 gm made trucks in the past and liked both but gm does not make a true compact truck and neither does Ram, Toyota, or Nissan. The Maverick was the only Ford product that I wanted. If I wanted a larger truck I would have kept either my 99 S-10 extended cab with a 2.2 I-4 5 speed or my 08 Isuzu I-370 4 x 4 with the 3.7 I-5, tow package, heated leather seats, and other niceties and it road like a luxury vehicle. I believe the demand is there for other manufacturers to make compact pickups. The proposed hybrid Toyota Stout would be a great truck. Subaru has experience making small trucks and they could make a very competitive compact truck and Subaru has a great all wheel drive system. Chevy has a great compact pickup offered in South America called the Montana which gm could make in North America and offered in the US and Canada. Ram has a great little compact truck offered in South America as well. Compact trucks are a great vehicle for those who want an open bed for hauling but what a smaller more affordable efficient practical vehicle.
- Groza George I don’t care about GM’s anything. They have not had anything of interest or of reasonable quality in a generation and now solely stay on business to provide UAW retirement while they slowly move production to Mexico.
- Arthur Dailey We have a lease coming due in October and no intention of buying the vehicle when the lease is up.Trying to decide on a replacement vehicle our preferences are the Maverick, Subaru Forester and Mazda CX-5 or CX-30.Unfortunately both the Maverick and Subaru are thin on the ground. Would prefer a Maverick with the hybrid, but the wife has 2 'must haves' those being heated seats and blind spot monitoring. That requires a factory order on the Maverick bringing Canadian price in the mid $40k range, and a delivery time of TBD. For the Subaru it looks like we would have to go up 2 trim levels to get those and that also puts it into the mid $40k range.Therefore are contemplating take another 2 or 3 year lease. Hoping that vehicle supply and prices stabilize and purchasing a hybrid or electric when that lease expires. By then we will both be retired, so that vehicle could be a 'forever car'. And an increased 'carbon tax' just kicked in this week in most of Canada. Prices are currently $1.72 per litre. Which according to my rough calculations is approximately $5.00 per gallon in US currency.Any recommendations would be welcomed.
- Eric Wait! They're moving? Mexico??!!
- GrumpyOldMan All modern road vehicles have tachometers in RPM X 1000. I've often wondered if that is a nanny-state regulation to prevent drivers from confusing it with the speedometer. If so, the Ford retro gauges would appear to be illegal.
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I envy Toyota, Nissan, and Honda. Even in this age of the SUV, they still thousands of sedans and compacts each year. In fact the Camry and Accord easily outsell most GM trucks and SUVs.
Woo hoo! The station wagon and hatchback have triumphed in the end! Sure, we have to give today's wagons a little excess ground clearance and call them a Crossover, but these are just tall, practical station wagons. Hatchbacks are dead, unless you put a hybrid power-train in them and then you have The Prius! The two most rational configurations for flexibility, usability, drive-ability and efficiency have won!!!! Meanwhile, stupid configurations like two door coupes and big on the outside, small on the inside sedans are getting run out of town. Time to party!%$$%^*)&)&(*)(*&_!