Here's Why Automakers Are Making Crossovers and SUVs

A new study shows sales of crossovers and SUVs continue to grow in the U.S.

According to IHS Markit, over two-thirds of crossover and SUV owners in the U.S., who returned to market in the first four months of 2017, acquired another crossover or SUV. Consumer loyalty for the segment has grown from 52.9 percent in 2012 to 63.4 percent in 2016. Through April 2017, it has reached a record high 66.2 percent. That’s compared to the industry average of 52.6 percent through April 2017.

While consumer loyalty for crossovers and SUVs continues to increase, sedan owners are switching segments when it comes to replacing their vehicles. In 2012, consumer loyalty for sedans was 56.2 percent, but it has steadily declined since to 48.6 percent through April 2017. IHS Markit data indicates in the first four months of this year, two-thirds of sedan owners turned to a crossover or SUV, which represents nearly 300,000 transactions.

SEE ALSO: Midsize Three-Row Crossover Comparison Test

In other segments, pickups registered 50.9-percent consumer loyalty through April 2017, compared to 42.5 percent in 2012. The van segment has risen slightly from 29.0 percent in 2012 to 31.8 percent through April 2017. The hatchback market has been dropping from 27.2 percent in 2012 to 25.2 percent in 2016, but so far this year through April 2017, it has risen to 27.1 percent. The coupe segment has also seen a slight uptick in loyalty, from 19.3 percent in 2012 to 21.6 percent through April 2017. Lastly, the convertible segment is also enjoying an uptick, although it may decrease by year’s end. In 2012, 18.3 percent of buyers chose another convertible, reaching a high of 18.8 percent in 2016. Through April 2017 however, that number is sitting at 21 percent.

“The exceptionally high loyalty of SUV/CUV households is driven by continued proliferation of crossover models across a wide range of size, price and functionality (i.e., off-road vs. non-off road),” said Tom Libby, manager, automotive loyalty and industry analysis at IHS Markit. “In some cases this proliferation has resulted in two or even three models in the same segment from the same brand.”

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