There’s a factor that’s apparent, that you would be able to see with your personal eyes daily — that Individuals are shopping for numerous vehicles and SUVs; actually the overwhelming majority of recent automobile purchases are vehicles and SUVs — however you then learn a stat about it, and it turns into astounding once more. The stat is that this, through JD Energy: That in October 2021, over 80 p.c of estimated new automobile gross sales within the U.S. had been SUV and vehicles for the primary time ever. Over 80 p.c!
That quantity continued in November and December and is on tempo to take action once more in January. For the complete 12 months in 2021, the quantity was 78.5 p.c, a quantity that has steadily ticked up for the final decade. In 2010, for instance, solely 52.7 p.c of new-vehicle gross sales had been vehicles and SUVs, the remaining automobiles, or virtually a good cut up. In 2013, that quantity was 52.1 p.c, in line with numbers supplied by JD Energy. In 2014, it ticked as much as 54.6 p.c, and hasn’t appeared again since.
See for your self, within the following desk of new-vehicle gross sales within the US, compiled by JD:
“Right here is … an annual cut up again to 2010,” says Tyson Jominy, vice chairman of information and analytics at JD Energy. “It reveals the general decline in automobile gross sales because the mid-2010s, however even since Covid, the decline has accelerated.”
It’s, in some ways, a type of chicken-or-egg state of affairs, as an automaker like Ford doesn’t even promote common automobiles anymore, and Chevy solely sells two. It is because Individuals have most popular SUVs, although, conveniently, SUVs are additionally extra worthwhile for automakers since they have a tendency to price greater than, say, a Chevy Malibu.
Additionally, longer and longer automobile loans lately have lowered automobile funds and maybe satisfied many individuals that they’ll purchase extra automobile than they in any other case would be capable to afford. Additional, most automakers spent the final 12 months prioritizing manufacturing of their highest-profit automobiles amid the chip scarcity, which typically meant: SUVs and vehicles. In recent times, gasoline has additionally been comparatively low cost, even because it has ticked up because the pandemic.
For all of those causes, the rise of SUVs and vehicles may be defined if not utterly understood, for these of us who grew up in an period (the ‘90s) when some of the fascinating automobiles was a Honda Accord. Eighty p.c, man!