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NEW CARS - US - SEPTEMBER 2018

Published By :

Mintel

Published Date : Sep 2018

Category :

Machines

No. of Pages : N/A

New vehicle sales are stagnant in terms of growth and the market has shifted toward more profitable crossovers and SUVs. Brands have introduced more and more models into the category to take advantage of shifting consumer needs and preferences. While the new vehicle market has shifted toward a new vehicle category, consumers continue to shop based on the pillars of affordability, safety, and reliability.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
The issues
Sales face headwinds, stagnating growth
Figure 1: Total US unit sales and fan chart forecast of new passenger cars and new light trucks, 2013-23
Abandon car! Shoppers flee to crossover/SUV category
Figure 2: Passenger car and light truck sales as a percentage of the market, 2014-18*
Dealerships need to differentiate themselves among younger shoppers
Figure 3: Attitudes toward new vehicles, by age, April 2018
The opportunities
New vehicle purchase consideration remains high
Figure 4: Purchase type, April 2018
Repairs, technology, and perks can convert used car shoppers
Figure 5: New vehicle factors, by purchase type, April 2018
Millennials remain dominant car-buying demographic
Figure 6: Purchase intent, by generation, April 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
New vehicle sales stable but flat for near future
Crossovers sap sales from passenger car segment
Rising interest rates will increase costs for shoppers
Trade disputes could turn on hazard lights for the auto industry
Mobility services provide consumers options besides a personal vehicle
MARKET SIZE AND FORECAST
New vehicle sales stagnant for near future
Figure 7: Total US unit sales and fan chart forecast of new passenger cars and new light trucks, 2013-23
Figure 8: Total US unit sales and fan chart forecast of new passenger cars and new light trucks, 2013-23
MARKET BREAKDOWN
Crossovers and SUVs drawing shoppers away from sedans and coupes
Figure 9: Passenger car and light truck sales as a percentage of the market, 2014-18*
Leasing penetration drops slightly year over year
Figure 10: Leasing as a percentage of new vehicle sales, Q1 2017-Q1 2018
MARKET PERSPECTIVE
Emerging mobility options may inhibit new vehicle purchases
Subscription services provide a flexible alternative to vehicle ownership
MARKET FACTORS
Increasing interest rates increase borrowing costs for car shoppers
Improving credit scores show higher quality shoppers are in the market
Figure 11: Average Q1 new credit scores, 2014-18
Figure 12: Credit score change in past year, May 2018
Gas prices close to $3 per gallon
Figure 13: US gasoline and diesel retail prices, January 2007-July 2018
Trade disputes cause uncertainty in the market
KEY PLAYERS – WHAT YOU NEED TO KNOW
Toyota jumps Chevy for second spot
Ford remains the top brand in the US
JoyDrive brings the new car buying process online
NEW VEHICLE SALES BY BRAND
Ford tops US sales as a brand, GM tops US sales as manufacturer
Figure 14: New vehicle sales, by brand, 2016-17
Figure 15: New vehicle sales, by manufacturer, 2016-17
WHAT’S WORKING?
Crossovers dominate sales landscape
Ford top US brand on strength of F-Series
Toyota grows to take second sales position
WHAT’S STRUGGLING?
Passenger car sales suffer amid crossover craze
WHAT’S NEXT?
JoyDrive brings the new car buying experience online
Ford bringing back the Bronco and Ranger
Brands planning wave of electrified models
THE CONSUMER – WHAT YOU NEED TO KNOW
New purchase consideration remains high
Millennials driving force behind new vehicle purchases
Reliability is the most appealing factor behind buying new
Younger shoppers less likely to differentiate dealerships
VEHICLES IN THE HOUSEHOLD & PURCHASE INTENT
Vehicle ownership remains ubiquitous in US
Figure 16: Number of vehicles in the household, April 2018
Sedans found in more than half of US households
Figure 17: Types of vehicles in the household, April 2018
Rural residents nearly twice as likely to have a pickup truck
Figure 18: Types of vehicles in the household, by area, April 2018
Consumer lifestyles determine the types of cars in the household
Figure 19: Types of vehicles in the household, by recreational item ownership, April 2018
Figure 20: Toyota Tundra online mobile ad, March 2018
PURCHASE INTENT
More than half of consumers plan on buying within three years
Figure 21: Purchase intent, April 2018
Consumer purchase intent remains steady
Figure 22: Purchase intent, July 2016-April 2018
Major life events accelerate purchase intent
Figure 23: Purchase intent, by major life events, April 2018
Millennials are the dominant car buying generation
Figure 24: Purchase intent, by generation, April 2018
English-speaking Hispanic Millennials show highest immediate intent
Figure 25: Purchase intent, by Hispanic origin and generation, April 2018
Fathers plan further ahead for the next household vehicle
Figure 26: Purchase intent, by gender and parental status, April 2018
NEXT VEHICLE PURCHASE
New vs used
Car shoppers aspire to purchase their next car new
Figure 27: Purchase type, April 2018
Household income is the main factor behind new vs used decision
Figure 28: Purchase type, by household income, April 2018
Vehicle types considered
Consideration between sedans and SUVs nearly level
Figure 29: Vehicle types considered, April 2018
Shoppers are more likely to return to the same vehicle category
Figure 30: Vehicle types considered, by types of vehicles in the household, April 2018
Figure 31: Ford Lauderdale Nissan buy back direct email, August 2018
Vehicle Replacement Plans
Nearly 80% of car shoppers plan to replace a current vehicle in the household
Figure 32: Vehicle replacement plan, April 2018
Majority of shoppers replacing a vehicle plan to trade in a current one
Figure 33: Replacement reasons, April 2018
More than a quarter of households with teenagers look to add a car
Figure 34: Chevrolet eNewsletter email, August 2018
Figure 35: Vehicle replacement plan, by presence of children by age in the household, April 2018
Younger shoppers more likely to get a car for themselves
Figure 36: Vehicle replacement plans, by age, April 2018
Figure 37: Purchase type, by replacement vehicle plans, April 2018
Payment plans
One in 10 shoppers plan on leasing their next vehicle
Figure 38: Payment plan, April 2018
Figure 39: Payment plan, by household income, April 2018
Half of shoppers planning to lease have a lease about to end
Figure 40: Replacement reasons, by payment plan, April 2018
NEW VEHICLE FACTORS
Car shoppers like the reliability a new vehicle brings
Figure 41: New vehicle factors, April 2018
Dealership perks could convince used car shoppers to go new
Figure 42: New vehicle factors, by purchase type, April 2018
Reliability and new vehicle warranty appealing to eight in 10 new car shoppers
Figure 43: TURF analysis – New car attributes, April 2018
BRANDS CONSIDERED
Toyota top brand considered among new car shoppers
Figure 44: Brands considered for new, April 2018
Jeep over indexes among younger car shoppers
Figure 45: Brands considered for new, April 2018
ATTITUDES TOWARD NEW CARS
Research is an important part of the consumer purchasing process
Figure 46: Attitudes toward new vehicles, part 1, April 2018
Half agree “made in America” is “American” regardless of the brand
Figure 47: Attitudes toward new vehicles, part 2, April 2018
Younger shoppers less likely to differentiate dealerships of the same brand
Figure 48: Attitudes toward new vehicles, by age, April 2018
Parents more willing to pay new car prices
Figure 49: Attitudes toward new cars, by parental status, April 2018
CLUSTER ANALYSIS
Figure 50: Cluster groups, April 2018
City Shoppers
Characteristics
Figure 51: Profile of City Shoppers, April 2018
Opportunities
Figure 52: Purchase intent, by cluster groups, April 2018
Figure 53: Purchase type, by cluster groups, April 2018
Budget GenXers
Characteristics
Figure 54: Profile of Budget GenXers, April 2018
Opportunities
Figure 55: Brands considered, by cluster groups, April 2018
Empty Suburbanesters
Characteristics
Figure 56: Attitudes toward new cars, by cluster groups, April 2018
Figure 57: Profile of Empty Suburbanesters, April 2018
Opportunities
Figure 58: Vehicle types considered, by cluster groups, April 2018
Figure 59: Brands considered, by cluster groups, April 2018
Rural Retirees
Characteristics
Figure 60: Profile of Rural Retirees, April 2018
Opportunities
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
TURF ANALYSIS
Methodology

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