SUV/CUV Owners Drive Automotive Loyalty Rates, IHS Says
May 26 2016 - 9:44AM
Business Wire
Loyalty among SUV/CUV owners in the United States has soared to
record levels, according to recent analysis from business
information provider IHS Automotive, part of IHS Inc. (NYSE: IHS).
Sixty-three percent of SUV/CUV owners who returned to market for a
new vehicle during the first quarter of 2016 purchased another SUV
or CUV, figures gleaned from the analysis of more than 1.9 million
return to market events during the quarter. Comparatively, loyalty
rates among sedan owners were just 53 percent in the same
timeframe, just slightly ahead of the industry average of 52.1
percent for the quarter, a trend that has continued to increase
over time.
The heightened appeal of crossovers and SUVs has propelled
vehicle manufacturers to greatly expand their product offerings in
this category, which in turn has increased consumer demand even
further. The number of CUVs and SUVs in dealer showrooms has
climbed, including a greater number of sub-compact crossovers from
mainstream as well as luxury brands. Manufacturers are also
offering multiple products in the same size category to cater to
both the off-road and the more leisurely buyer. The increase in
product offerings extends to the powertrain, seating
configurations, and safety, infotainment, connectivity, and
convenience technologies as well. In addition, relatively low gas
prices have shifted demand towards utility and off-roading
capabilities and away from fuel economy that is often associated
with cars.
Among 32 segments that IHS Automotive analyzed, the three
segments with the greatest increase in loyalty to body style are
CUVs; and of the 32, the eight with the highest propensity to
re-purchase the same body style are in the SUV or CUV category.
Luxury full-size SUV owners have the highest propensity to purchase
another vehicle within the SUV/CUV body style – with 70.3 percent
body style loyalty during the first quarter.
“We continue to see the SUV/CUV segment reaching record
registration volumes in the U.S. market,” said Tom Libby, manager,
loyalty and industry analysis with IHS Automotive. “New designs and
OEM marketing initiatives focused on capturing repeat buyers are
helping this segment continue its substantial growth,” he said.
New vehicle registration trends also continue toward
SUVs/CUVs; forecast reflects additional growth
Personal registrations of SUVs and CUVs continue to outpace
registrations of cars at record levels. During the first quarter
2011, SUVs and CUVs comprised just 35.2 percent of personal new
vehicle registrations, according to IHS Automotive, while during
the first quarter of 2016, the combined body style grew to 41.8
percent share of the market. Meanwhile, cars represented 48.7
percent of new vehicle registrations during the first quarter of
2011, and just 40.9 percent in the same timeframe in 2016.
Forecasts from IHS Automotive also reflect continued growth
among SUVs and CUVs in the marketplace through the forecast
horizon.
“The high loyalty rates for SUVs and CUVs lend credence to the
current shift from passenger cars to utility vehicles,” said
Christopher Hopson, manager, North America light vehicle sales
forecast at IHS Automotive. “We expect this shift to be sustained,
even when fuel prices are expected to rise back above USD
$3.00/gallon by 2020.”
About IHS Automotive
(www.ihs.com/automotive)
IHS Automotive, part of IHS Inc. (NYSE: IHS), offers clients the
most comprehensive content and deepest expertise and insight on the
automotive industry available anywhere in the world today. With the
2013 addition of Polk, IHS Automotive now provides expertise and
predictive insight across the entire automotive value chain from
product inception—across design and production—to the sales and
marketing efforts used to maximize potential in the marketplace. No
other source provides a more complete picture of the global
automotive industry. IHS is the leading source of information,
insight and analytics in critical areas that shape today’s business
landscape. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS is committed to
sustainable, profitable growth and employs nearly 9,000 people in
33 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016
IHS Inc. All rights reserved.
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IHS Inc.Michelle Culver, +1 248 728
7496michelle.culver@ihs.comorPress Team+1 303 305
8021press@ihs.comTwitter: @IHS_news
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