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CUVs Gain Market Share While Sweet Spot Grows

Published: July 21, 2020 by Guest Contributor

Data has become one of the most powerful tools in the automotive industry. It’s opened the door to innovative design, predictive maintenance, improved operations and more accurate risk assessments. And now, as we navigate COVID-19, the industry is leaning on data more than ever to move ahead. It can start with deeper insight into what’s on the road.  A keen understanding of market trends can inform operational strategy for the coming months—and if there’s ever been a time to be strategic, it’s now.

Experian recently released its Q1 2020 Market Trends report, which provides insights about the vehicles on the road and the most popular vehicle segments.

Entry-level crossover vehicles continue to gain significant market share

When looking at the top 20 segments of vehicles in operation, you likely won’t be surprised to find full-size pickups are the most popular vehicle, with 15.9 percent market share. It’s followed by standard mid-range cars (10 percent), but that will likely change soon. Entry-level crossover vehicles (CUVs) reached 9.9 percent of market share in Q1 2020—coming close to eclipsing mid-range cars. CUVs such as the Toyota RAV4, Ford Escape, and Honda CRV have seen continuous growth since Q1 2009, and are unlikely to stop anytime soon. In fact, as Q1 2020, CUVs comprised just over 50 percent of new vehicle registrations, more than any other vehicle segment.

While the first inclination would be to think about this in terms of inventory impact, there are clear marketing implications.  While full-size pickups remain the vehicle of choice for many car shoppers, increases in other vehicle types reinforce the need to understand your local market—particularly during this time.

In-market car shoppers have different needs—extra legroom, fuel efficiency, more seats, etc. Gone are the days of the one-size-fits-all campaigns. Understand the preferences of your local market and adjust messaging accordingly—just because full-size pickups are the most popular nationwide, doesn’t mean other areas are not in-market for a different vehicle.

Aftermarket “sweet spot” is growing

Vehicles that are 6 – 12 years old fall into what’s known as the aftermarket “sweet spot,” meaning that they’ve aged out of general manufacturer warranties, and will require consumers to pay closer attention to maintenance and potentially replace critical components—an opportunity for many aftermarket companies and dealers. As of Q1 2020, 31.5 percent of vehicles in operation fell into that “sweet spot.”

As the industry continues to think about consumers’ most pressing needs—what about consumers who aren’t in market to purchase but do have a vehicle in the “sweet spot”? Do they understand what service their vehicle may need, and why it’s important? This can be a good time to educate consumers on why routine upkeep is vital to keeping their vehicles on the road. This will build rapport with customers that will keep your brand top of mind for service needs, but also the next time they’re in market for a vehicle.

At the end of the day, data is at its most powerful when it enables us to make actionable decisions, whether they’re about marketing, inventory, or reopening in the current environment. The automotive industry will continue to remain resilient if we focus on the data available to us to make the right decisions as we move the industry forward, together.

To view the full Q1 2020 Market Trends presentation, click here

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While many view Experian as a credit bureau, we have a rich history in identifying and analyzing emerging market shifts and consumer behaviors across industries, particularly automotive. In fact, Experian’s Automotive Consumer Trends Report: Q1 2025 is one of our many reports that provide essential intel for automotive professionals navigating today’s competitive landscape. And this quarter’s report sheds light on SUVs (including SUVs and CUVs)—a segment that continues to pique consumers’ interest. Data in the first quarter of this year found 62.8% of new retail registrations were SUVs, accounting for the largest portion of market share over the last 12 months—compared to sedans (18.4%), pickup trucks (16.6%), and vans (2.2%). While overall SUV registrations highlight the growing dominance in this sector, a closer look at the data revealed that electric SUVs are emerging as a contributor to this momentum. In Q1 2025, electric SUVs accounted for 10.5% of new retail SUV registrations—and within that group, 30.7% were registered in the state of California. It’s crucial for automotive professionals to monitor these trends and prepare accordingly as the fuel type continues to grow. Which electric SUV models are catching buyers’ attention? Knowing which types of electric SUVs are attracting consumer interest can enable professionals to align their offerings with market demand. The Tesla Model Y made up nearly half of the new retail SUV registrations for exotic and luxury in the last 12 months, coming in at 40.5%. Interestingly, the next closest model, Ford Mustang Mach-E, trailed behind at 5.8%. Rounding out the top five were the Hyundai IONIQ 5 (5.5%), Honda Prologue (4.9%), and Chevrolet Equinox EV (4.3%). Understanding SUV registrations goes beyond data—it’s about spotting the shift in consumer behavior as this segment as well as the EV fuel type continues to break ground in the automotive landscape. This insight gives professionals the leverage they need to adapt and refine their strategies in the next era of mobility. To learn more about SUV insights, view the full Automotive Consumer Trends Report: Q1 2025 presentation.

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