Compact utility vehicles are now the most popular segment in the U.S., reports TrueCar.
In the first quarter of 2015, compact utilities in the U.S. grew to 15.6 per cent. That’s higher than compact cars, which captured 15.1 per cent of total new vehicle sales.
TrueCar expects compact utilities segment will account for 15.9 per cent of total new light vehicle sales for the year and will continue to grow in popularity, while compact cars will hold 15.1 per cent share.
“Car-buyers’ shift in preference to utilities from sedans is a clear secular trend we see in TrueCar demand data, transaction price data and sales results,” said John Krafcik, president of TrueCar, in a written release.
Krafcik attributed the segment’s popularity to a drop in fuel prices and more vehicle versatility within the segment.
“Given how well compact utilities meet consumer functionality and fuel economy needs, smart automakers have leaned into the segment and benefited from significantly higher revenue and margins,” Krafcik added.
TrueCar cites Honda as a prime example of an OEM doing just that. Honda’s CR-V, which generated the most revenue for the brand in the first quarter, has an average transaction price of $27,239 U.S. — outperforming the Civic priced at $20,078 U.S.
