Historically, American consumers have always wanted bigger vehicles, leading to the popularity of SUVs. The rise of more fuel-efficient sedans in the past decade did little to squash the big vehicle fad, but is that changing? Are Americans starting to ditch their hulking SUVs for more fuel-efficient alternatives? Read along to find out.
Increasing Gas Prices
A recent report suggests that BMW and Toyota have stampeded the competition. Their sedan sales have helped these two auto giants reach the top again. So, why is it that after so many years of trucks and SUVs dominating the market, sedans are suddenly making such a strong comeback? One of the biggest reasons for this is the rise in gas prices. When trucks and SUVs were popular, gas prices were comparatively lower. So consumers didn’t mind the fact that their large vehicle was consuming more fuel. This has changed. Increasing gas prices have made it difficult for people to afford auto transportation, especially fuel-thirsty vehicles like SUVs.
Reason Behind Excessive Gas Prices
Why must consumers pay excessive gas prices? That question runs through everyone’s mind as they stop at the pumps. Unless you drive an electric vehicle (EV). However, the answer is the rise in oil demand for those who don’t own an EV. During the pandemic, many had the opportunity to work from home and didn’t need to drive. Now that people have started hitting the roadways again, oil companies are facing a shortage and are struggling to keep up with the surging demand.
Affordability of Sedans
Another reason for the surge in sales is that sedans are usually less expensive than SUVs and trucks. Some might argue that luxury sedans are more expensive than some SUVs, but the costs even out if you factor in gas prices.
Despite the rising popularity of sedans, automakers are advised not to stop the production of trucks and SUVs. These two categories still make up a fairly large share of the market. There’s still a demand for these vehicles among passionate consumers. A report shows that the Escalade helped bring in great sales for Cadillac, and so did the Durango for Dodge.
