Unless you have been living underneath a rock, then you know that the popularity of crossovers and SUVs have been booming. A new analysis reveals this popularity will not be going away anytime soon.
IHS Markit looked at consumer loyalty rates for various body styles from 2012 to April 2017 and found that 66.2 percent owners of SUV and crossover models returned to buy another - the highest IHS has ever recorded. To give some perspective, pickups come second at 50.9 percent.
"We collect this data and provide it to our clients once a month, but we felt that the results were so extraordinary in terms of consumer loyalty numbers for SUVs and CUVs that we wanted to publicly release it," said Tom Libby, manager of automotive loyalty and industry analysis at IHS Markit.
More surprising is how much the loyalty rate for SUVs and crossovers has been rising since 2012. That year saw a loyalty rate of 52.9 percent.
"While one can make the case that a factor is gas prices, there are some other key drivers to sport and crossover utility. One is wide range of selection in price and size of crossover vehicles. SUVs also have the appealing combination where the driver gets the comfort level of being in a car but also gets the versatility of being in a larger vehicle," Libby said.
With one body style going up, one must go down. In this case, it happens to be the sedan. In 2012, loyalty for sedans stood at 56 percent. Since then, the rate has been dropping - stands at 49 percent through the first four months of this year. IHS Markit analysis revealed that in the first four months of 2017, two-thirds of sedan owners that bought a new vehicle chose an SUV/crossover. Those likely to switch from a sedan to an SUV/crossover are ones that have owned only one sedan.
But don't expect sedans to go away anytime soon.
"While loyalty in sedans has gone down, sedans aren't going away. Sedans still play a significant part in the market, and that's not going away anytime soon," said Libby.
Source: Automotive News (Subscription Required)