Polk Study Shows SUV Sales Strong Despite Rising Fuel Costs
5 January 2001
Polk Study Shows SUV Sales Strong Despite Rising Fuel Costs
DETROIT, Jan. 4 Soaring gas prices haven't altered strong
sport utility vehicle sales, according to a study released today by Polk, the
longest-standing curator of automobile records in the United States. SUV
sales continue to rise despite gas prices leaping from an average of $1.22 in
1999 to more than $1.60 throughout the summer and fall of 2000 (Source:
Energy Information Administration).
With the average fuel economy at about eight miles per gallon less for
light trucks than the average car (20.3 vs. 28.1 in 1999 -- Source:
Environmental Protection Agency), SUV owners were among those feeling the
brunt of climbing fuel costs. However, during the 2000 model year, SUVs
comprised the largest share of automotive sales in the United States. While
SUV market share dropped slightly from the first half of the 2000 model year
to the second half (21.6 percent to 20.5 percent respectively), the SUV
segment replaced the mid-size car during the 2000 model year as the vehicle
segment with the largest market share.
MARKET SHARE AMONG TOP VEHICLES SEGMENTS
Segment 1996 1997 1998 1999 2000
MY MY MY MY MY
Compact SUV 1.5% 2.3% 2.8% 3.2% 3.8%
Mid-size SUV 10.4% 11.2% 12.0% 12.4% 12.7%
Full-size SUV 2.3% 3.5% 4.0% 4.3% 4.5%
TOTAL SUV 14.2% 17.0% 18.8% 19.9% 21.0%
Source: Polk
Fuel Economy Not a Concern for SUV Buyers
According to the Polk study, SUV buyers rated the importance of gas
mileage significantly lower than all other new vehicle buyers. Compact SUV
buyers appeared to be the most price sensitive, rating the importance of gas
mileage higher than mid-size and full-size SUV buyers. During the first half
of the 2000 model year, there was more than a 20 percent difference in the
fuel economy importance rating for SUV buyers compared to all new vehicle
buyers.
Importance of Gas Mileage for New Vehicle Buyers
% Rating Gas Mileage at Critically or Very Important
Type of Vehicle Purchased: First Half, Second Half, First Half,
1999 MY 1999 MY 2000 MY
Compact SUV 59.3% 60.5% 60.7%
Mid-size SUV 51.1% 53.0% 43.8%
Full-size SUV 43.2% 42.4% 42.3%
TOTAL SUV 49.4% 50.1% 45.5%
ALL NEW VEHICLE BUYERS 66.3% 66.8% 66.8%
Source: Polk
"From the economical compact SUVs to the spacious full-size models, our
research suggests that SUV buyers are placing other vehicle needs above fuel
economy concerns," said Diane Kusnierczyk, Polk's loyalty research manager.
"Even though gas prices may continue to rise, the strong appeal of SUVs is
likely to remain constant. Faced with a variety of selections and new model
introductions, consumers are ultimately driven by their individual vehicle
needs."
SUV Buyer Profiles
According to Polk's analysis, for many compact SUV buyers, this marks
their first light truck purchase. More economically driven than buyers of
larger SUVs, compact SUV buyers are generally less affluent. With some
compact SUVs rivaling cars in fuel economy, they offer a smooth transition
from the buyer's previous mid-size or small car.
Compact SUV buyers want a vehicle that is not only functional, reliable
and practical but sporty and recreational as well. Not looking for a family
vehicle, they are less likely to be married or have children than buyers of
the larger SUVs.
Similar to compact SUV buyers, most new buyers of a mid-size SUV owned a
car prior to their SUV purchase. Fuel economy is less of a concern among
these buyers, with most reporting a household income of at least $75,000.
More likely to be married, mid-size SUV owners are looking for a reliable,
functional vehicle suited for a family.
Full-size SUV owners are not new to the light truck segment and are most
likely to have moved up from a mid-size SUV. Faced with the lowest fuel
economy of the three SUV groups, full-size SUV buyers are the most affluent.
With a majority being married and having children at home, it is not
surprising these buyers are looking for a family vehicle that is functional
and spacious.
Polk research revealed that once in the truck segment, SUV owners are
likely to stay there. Compact SUV owners tend to move to the mid-size SUV,
while mid-size SUV owners moved up to the full-size SUV. Few mid-size and
full-size SUV owners purchased the smaller compact SUV.
Polk's Manufacturer Loyalty Excelerator(TM) report, which is the basis for
the Polk Automotive Loyalty rankings and annual awards, is the latest insight
into this type of consumer behavior. This report was introduced to the
automotive industry in 1995 and was created to provide household loyalty
information to manufacturers at many different levels. It is being used to
provide loyalty percentages for the entire automotive industry to allow for
cross-industry comparisons of loyalty behavior and to examine loyalty at
various levels from the industry level down to the vehicle line level. The
report measures loyalty throughout the entire model year so that manufacturers
may keep abreast of loyalty trends as they occur in the industry
Supporting Tables
TOP CONQUESTS TO SPORT UTILITY VEHICLE SEGMENTS
First Half 2000 Model Year
Compact Sport Mid-size Sport Full-size Sport
Utility Vehicle Utility Vehicle Utility Vehicle
Percent of Percent of Percent of
Segment Conquests Segment Conquests Segment Conquests
Mid-size Car 23.5% Mid-size Car 22.8% Mid-size SUV 24.2%
Small Car 20.7% Full-size Full-size
Pickup 12.2% pickup 21.0%
Mid-size SUV 13.3% Small Car 12.1% Mid-size Car 12.2%
Total Car 57.8% Total Car 57.5% Total Car 35.6%
Total Truck 42.2% Total Truck 42.5% Total Truck 64.4%
Source: Polk's Manufacturer Loyalty Excelerator(TM) Study
TOP DEFECTIONS FROM SPORT UTILITY VEHICLE SEGMENTS
First Half 2000 Model Year
Compact Sport Mid-size Sport Full-size Sport
Utility Vehicle Utility Vehicle Utility Vehicle
Percent of Percent of Percent of
Segment Defections Segment Defections Segment Defections
Mid-size SUV 21.9% Mid-size Car 17.6% Full-size
Pickup 23.8%
Mid-size Car 17.3% Full-size SUV 16.6% Regular SUV 17.1%
Small Car 13.3% Full-size Pickup 13.9% Mid-size Car 12.7%
Total Car 46.0% Total Car 48.6% Total Car 44.5%
Total Truck 54.0% Total Truck 51.4% Total Truck 55.5%
Source: Polk's Manufacturer Loyalty Excelerator(TM)
DEMOGRAPHIC PROFILE OF SUV SEGMENTS
First Half of the 2000 Model Year
Compact SUV Mid-size SUV Full-size SUV
Age
Under 35 13.9% 15.3% 12.7%
35-54 54.1% 52.4% 57.4%
55+ 32.0% 32.3% 29.9%
Household Income
Under $75,000 63.6% 44.0% 41.2%
$75,000 and over 36.4% 56.0% 58.8%
Marital Status
Married 78.3% 80.9% 88.2%
Not Married 21.7% 19.1% 11.8%
Children in Household
Yes 48.7% 46.1% 56.6%
No 51.3% 53.9% 43.4%
Source: Polk's Manufacturer Loyalty Excelerator(TM)