The automotive industry in the U.S. has been enjoying one of the best years in terms of sales. But one segment is seeing a drop in their sales. That segment is the midsize sedan.
Automotive News reports that the demand for midsize sedans is at a five-year low. The numbers tell this sad story. In the first quarter of 2016, sales of midsize sedans dropped 3.4 percent. The second quarter saw sales dropped 13 percent, while the third quarter saw a whopping 21 percent drop. For the month August, all 16 midsize sedans saw an average drop of 27 percent. The Ford Fusion, Hyundai Sonata, Kia Optima, and Nissan Altima reported drops of over 30 percent.
Automakers have been throwing money on the hoods of their midsize sedans to try and ignite sales. But this tactic isn't working.
Why are midsize sedan sales down? It comes down to consumers wanting crossovers and SUVs.
"It doesn't matter how deep you discount the leisure suit and bell-bottoms -- nobody's going to buy them if they're not fashionable. I don't think they're ever going to go away, but there's a lot more people who don't consider them anymore," said Eric Lyman, vice president of industry insights at TrueCar.
The outlook for midsize sedan sales doesn't look good as we enter fall and winter.
"That larger sedan buyer just sees more value in the SUVs or CUVs," said Mike DeSilva, co-owner of Liberty Hyundai in Mahwah, N.J. "That's just where the activity is. And heading into the end of summer and going into winter, we're really going to get into SUV season."
Source: Automotive News (Subscription Required)