Cain's Segments, January 2014: Subcompacts

Timothy Cain
by Timothy Cain

The Mitsubishi Mirage’s status as the best-selling Mitsubishi passenger car in America in January 2014 wasn’t enough to help the subcompact segment overcome the declines reported by its leaders last month.

Up from nothing a year ago, Mirage sales totalled 1170 units in January 2014, the nameplate’s second-best month since its return in September. Excluding the Mirage from the equation, subcompact sales slid 9% (rather than 7%) in January, right in line with the overall passenger car market’s decline.

It could be argued that the Mirage is more of a competitor for the Chevrolet Spark than the Chevrolet Sonic, sales of which slid 23% to 1848 units in January. We’ve excluded the Spark, Fiat 500, Hyundai Veloster, Mini Cooper, Scion iQ, Scion xD, Smart Fortwo, and Volkswagen Beetle and from this list in an attempt to showcase the most direct mainstream subcompact rivals. Including those cars, sales of 18 small cars were indeed down 9% in January.

Digression complete, the Nissan Versa was again America’s top-selling subcompact car. Simply put, space wins, and the Versa (and Versa Note) provide space for families in an incredibly affordable package. Complaints regarding its CVT or frumpy sedan styling were set aside by a record 117,352 new Versa owners in 2013. 2014 is off to a slower pace.

The next-best-selling Chevrolet Sonic is joined by the Ford Fiesta in claiming 30% of the subcompact market for Detroit. That the Sonic and Fiesta could do so on the basis of offering the lowest price or the highest incentives would be one thing; but that they compete as two of the most dynamically competent subcompacts is a sign that Detroit automakers have a future in the small car business. Sales of both the Sonic and Fiesta were down in January.

The Honda Fit, another friend of drivers, recorded a narrow 34-unit loss, but we can expect Fit sales to fluctuate as the second-generation car departs this year and the third-gen Fit arrives.

Jointly, sales of the Hyundai Accent/Kia Rio fraternal twin duo rose 24% in January 2014 to 7402 units. The pair generated 101,210 sales in 2013, 20% of the category’s volume.

The bottom four – Mazda 2, Mirage, two Toyotas – attracted just 16% of subcompact buyers in January. The same cars, without the Mirage’s help, owned 19% of the market one year ago.

Year-over-year, Mazda 2 volume has decreased in twelve of the last thirteen months. Toyota’s Yaris volume has decreased in ten of the last thirteen months. Yaris sales fell 79% between 2008 and 2013. The Sonic, Fiesta, Accent, Rio, and Versa, all of which sell more often, are available in hatchback and sedan form, unlike the hatchback-only Yaris, 2, and Prius C.

The Prius C was just one part of a Prius family which fell 23% to 12,205 units in January. The Prius C accounted for 20% of total Prius sales last month, up from 17% in January 2013. Although Prius C volume increased 17% in 2013 (4% in a direct year-over-year ten-month period), the year didn’t end well, and Prius C sales are down 7% over the last five months.


At the best of times, in the best of weather, with the highest or the lowest fuel prices, January is traditionally a slow month for the auto industry in the United States. We won’t, therefore, base theories on the decreasing desirability of subcompacts on January results. But, in the back of our minds, we will remember that this same group of cars was up just 1% in October, level in November, and down 4% in December.

SubcompactJanuary 2014January 2013% ChangeChevrolet Sonic65877177– 8.2%Ford Fiesta41624285– 2.9%Honda Fit31223156– 1.1%Hyundai Accent42403495+ 21.3%Kia Rio31622470+ 28.0%Mazda 29071543– 41.2%Mitsubishi Mirage1170——Nissan Versa852410,270– 17.0%Toyota Prius C24672691– 8.3%Toyota Yaris10052897– 65.3%—— ——Total35,346 37,984 – 6.9%
Timothy Cain
Timothy Cain

More by Timothy Cain

Comments
Join the conversation
3 of 23 comments
  • Lorenzo Lorenzo on Feb 10, 2014

    What gets me is that Fiat-Chrysler still has nothing in this segment. Wasn't it the idea to use Fiat's small car expertise to fill the gap left when the Neon's run was ended? Sergio has provided the 500 and a clubman clone, is planning to revive Alfa after starving it of models, and did starve Lancia to only one Italy-only model, and looks like he's on his way to starving Chrysler and Dodge of models too. I get the impression Mr. Marchionne belongs in a CFO/Vice Chairman position, with a car guy taking over as CEO.

    • Mjz Mjz on Feb 11, 2014

      I think with the downturn in Europe, Mr. Marchionne has only so many eggs to put in so many baskets. The Lancia and Dodge baskets are going to have very few, if any, eggs in them unfortunately.

  • Cabriolet Cabriolet on Feb 11, 2014

    Can not see what people see in the Versa. I guess it is a cheap price. I just got back from vacation and we rented a base versa with manual transmission. Nice ride but very wide turning circle. The steering is very poor no feed back at all. Cheap plastic & tin can doors, truck lid & hood. Very good on gas and a lot of room but to drive that car on a daily basis i would go crazy. But have to remember cheap price!

  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
Next