Consumer Loyalty to SUV/CUVs Highest Ever; Sedan Loyalty Continues to Drop, IHS Markit Says
July 11 2017 - 8:00AM
Business Wire
More than two-thirds of Sport Utility Vehicle (SUV) and
Crossover Utility Vehicle (CUV) owners in the U.S. who returned to
market in the first four months of 2017 acquired another new SUV or
CUV, according to new analysis from business information provider
IHS Markit (Nasdaq: INFO).
SUV/CUV loyalty has grown from under 53 percent in 2012 to more
than 66 percent through April, and is 13 percentage points higher
than the industry average of 52.6 percent, IHS Markit says. Pickup
loyalty rates are also increasing, with nearly 51 percent of pickup
owners acquiring another one during the first four months of the
year. These two categories have grown in part due to low gas
prices.
At the same time, sedan loyalty rates have softened, with rates
declining 7.6 percentage points to 48.6 percent since 2012, when
56.2 percent of sedan owners acquired another sedan, according to
IHS Markit analysis. If this trend continues through the rest of
the year, this will mark the first year in which less than half of
sedan households acquired another one when they returned to market.
IHS Markit data indicate in the first four months of 2017,
two-thirds of sedan owners defected to an SUV/CUV – representing
nearly 300,000 transactions.
Consumer Automotive Loyalty Rates by Body Style,
2012-2017 2012 2013
2014 2015 2016
April 2017 CYTD TOTAL SPORT UTILITY 52.9
53.7 57.0 60.9
63.4 66.2
INDUSTRY
47.6
48.1
49.0
50.5
51.6
52.6
PICKUPS 42.5 44.3 45.1
48.2 49.6 50.9 SEDAN
56.2 56.1 54.4
52.3 50.7 48.6 TOTAL VAN
29.0 29.9 29.4
31.9 33.6 31.8 HATCHBACK
27.2 27.6 26.3 25.8
25.2 27.1 COUPE 19.3
19 20.4 22
21.9 21.6 CONVERTIBLE 18.3
18.4 17.9 18.8
18.8 21
Source: IHS Markit
Note: 2017 represents January – April 2017
personal new vehicle registrations, the most recent data
available.
The top three body styles with the highest loyalty account for
more than 85 percent of all new light vehicle registrations in the
U.S. during the first four months of 2017, IHS Markit says.
“The exceptionally high loyalty of SUV/CUV households is driven
by continued proliferation of crossover models across a wide range
of size, price and functionality (i.e., off-road vs. non-off
road),” said Tom Libby, manager, automotive loyalty and industry
analysis at IHS Markit. “In some cases this proliferation has
resulted in two or even three models in the same segment from the
same brand.”
IHS Markit loyalty data further indicate that those sedan
households most vulnerable to defecting to another body style (such
as SUV/CUV) are nomads -- those households that have only owned one
sedan; in contrast to those that have owned two or more
consecutively, defined as loyalists or super loyalists by IHS
Markit. Loyalists and super loyalists are more loyal to the body
style and less vulnerable to defection.
“Marketing teams from brands with a competitive SUV/CUV
portfolio would therefore be best served to target those households
that have not been consistently sedan-oriented over the past
several purchase cycles,” Libby said.
The complete analysis by IHS Markit covered U.S. new vehicle
transactions from 2012-April 2017, including purchases and leases
that took place between January 2012 and April of 2017 among owners
who had acquired a new vehicle in the past ten years. The SUV/CUV
body style as defined by the research includes SUV and CUV models
collectively. In addition, the second vehicle may be an addition to
the household fleet, not necessarily a replacement.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is the automotive industry’s leading
source for market-wide insight, expertise and advanced planning
solutions. With a reputation of enabling better decisions and
better results for nearly a century, the world’s leading OEMs,
suppliers and their transportation partners rely on IHS Markit to
power growth, improve efficiency and drive a sustainable
competitive advantage.
Automotive offerings and expertise at IHS Markit span every
major market and, the entire automotive value chain -- from product
planning to marketing, sales and the aftermarket. Headquartered in
London, the automotive team is part of the IHS Markit information
and analytics powerhouse that includes 12,300-plus colleagues in
150 countries, covering energy, chemical, aerospace and defense,
maritime, financial, technology, media and telecommunications. For
additional information, please visit www.ihsmarkit.com or email
automotive@ihsmarkit.com.
IHS Markit is a registered trademark of IHS Markit Ltd and/or
its affiliates. All other company and product names may be
trademarks of their respective owners © 2017 IHS Markit Ltd. All
rights reserved.
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IHS MarkitMichelle Culver,
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Team+1-303-305-8021press@ihs.comFollow @IHS_News
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