Americans Might Not Even Buy 1.4 Million Midsize Cars This Year; Market Share Down By Half Since Recession
Remember the midsize sedan death watch?
When TTAC introduced the series, Americans were still acquiring over 2 million midsize cars per year. That fact, the 2M+ aspect of the segment and the 1M+ nature of the top models, combined with the category’s 12-percent market share, caused many readers to doubt the possibility that any other intermediate sedans would ever bid farewell.
Others have, of course, fallen by the wayside. Joining the long-lost Mercury Milan, Pontiac G6, Saturn Aura, Suzuki Kizashi, Mitsubishi Galant, and Dodge Avenger in that great midsize parking lot in the sky are cars such as the Chrysler 200 and Ford Fusion. The Chevrolet Malibu is not long for this world.
Meanwhile, sales of the remaining midsize cars continue to tank. The notion that America’s midsize segment is a reliable provider of more than 2 million units per year is now cast by the wayside. Americans are likely to purchase and lease fewer than 1.4 million midsize cars in 2019. That’s 15-percent fewer midsize cars than Americans drove home in 2009 during the depths of the Great Recession.
U.S. Auto Sales Continue to Decline, July Outlook Dim
We’re now in the seventh month of declining automotive sales in the United States. However, global sales haven’t fared any better. China posted its worst-ever monthly decline more than once this year with specific brands claiming as much as 70-percent slump in sales through the first half of 2019. Things are also going badly in Europe and have been for quite some time, with June playing host to some exceedingly bad metrics.
In fact, North America has had it comparatively good since its troubles hadn’t become truly persistent until the start of this year and the monthly dip rate has been been less severe. That does not, however, make the situation in the U.S. sunshine and roses.
American Automakers Losing Footing in China's Wonky Market
Last week, we looked at how the world’s largest automotive markets are coping. If you’re interested in an abridged version, they could all be doing better. We also noted that China was getting around to summarizing its summer sales data. Well, that ship has since come in, and it was full of corpses. The country has endured three straight months of falling car sales after years of consistent growth.
As the world’s largest automotive market, China impacts just about every other industrialized nation on the planet. Unfortunately, the China Association of Automobile Manufacturers (CAAM) reported that influence helped the market share of U.S. brands fall to 10.7 percent in the first eight months of 2018 versus 12.2 percent just one year earlier. The association’s assistant secretary general, Xu Haidong, said this decline could be attributed to American firms inability to refresh their lineups in a timely manner and definitely had nothing to do with the trade war, anti-American sentiments, or the boycotting of U.S. brands by Chinese consumers.