Sedans no longer on top, but they’re not dead
In 2014, SUVs overtook Sedans as the best-selling body style,
and as of 2020 have grown to 52% of the industry. But passenger
cars overall still hold 25% of the industry, with Sedans at 18%. In
2020, over 2 million sedans were sold in the US. As many
manufacturers discontinue sedans, it is critical to understand who
the sedan buyers are in order to convert them to loyal SUV buyers
or conquest them to new brands.
Top 25 DMAs have higher sedan loyalty than the national
average
In 2020, the national average for sedan loyalty was 41.9%.
However, when looking at the top 25 DMAs by volume, average sedan
loyalty increased to 45.3%. Additionally, 13 of the top 25 DMAs
over-indexed the nation, and 8 had sedan loyalty that exceeded both
the national average and the Top 25 average sedan loyalty (Fig. 1).
These DMAs include the top 2 DMAs by volume, New York and Los
Angeles, as well as 4 DMAs in Florida. In fact, New York, LA, Miami
and Palm Beach have sedan loyalty that exceeds 50%.
Multicultural buyers hold a higher share of sedans than the
industry overall
Multicultural buyers make up only 29.6% of personal
registrations (Fig. 2). However, when analyzing by body style,
multicultural buyers hold a lower share of both SUVs and Pickups,
with 27.1% and 23.9% share, respectively.
Read More
Read our full Automotive Advisory Insights from IHS Markit. The
May 2021 issue focuses on sedans – trends, insights, and
opportunities.
