SUV's Are Driving Sales Everywhere, But Why Are Honda Sales Increases Fueled Primarily By Sedans?

WHile trucks and SUVs are now taking the majority of the sales in the USA - that still leaves a huge portion (CLose to half) that are buying cars. And that brings us to who they are.

1 - The older Americans buy large or midsize cars because they prefer the ride of a car - and the ability to get in and out of cars versus climbing into an SUV. It is interesting - for instance - that Mini-Vans sell well among this group as well - probably because they are less TRUCK like. A Mini-van is almost the ideal traveling car when you are simply seeing sights.

2 - Younger Americans who can buy a car - are also more likely to buy a compact or smaller sedan - because it is virtually IMPOSSIBLE to go to a dealer and find a low cost - less well optioned -SUV. When they see the real price of those things - they opt for the Civic.

3 - Working Americans who commute by road - also seem to prefer the Compact/Mid size cars - to an SUV. THey get decent gas mileage and are easier to park.


THis represents a large portion of the buying public - and is therefore something manufacturers cannot afford to ignore

Maybe because their sedans are good cars. You know, quality reliable cars that do everything reasonably well with boring characteristics that boring buyers like. Not the zoom zoom stylish manual hellcat engines that get Car & Driver magazine excited about.

The new Civic is such an upgrade over the old one and the competition, they are stealing share from other OEM's and bucking the trend in the category. There is probably a chunk of people waiting for Honda to get their mojo back and hopped on the bandwagon when they did with the Civic.

First of all, we're talking 1-month's sales, for April 2016. Those sales numbers alone are hardly a trend, a cause for alarm, or enough info on which to base a sweeping generalization of a company.

IF we had 24 months of data for Honda and other manufacturers, and IF we saw fairly a consistent and statistically meaningful percentage increase of unit sales in SUVs and light trucks in other manufacturers but not in Honda, THEN we'd have a meaningful basis upon which to have this conversation and to speculate on why that is so.

Without that sort of info, I'd simply add that TomM's argument sounds reasonable to me.

money on the hood

Simple offer a better product for 80% of the market with leading reliability, efficiency, safety, features, comfort, handling. Honda Accord and Civic sales are on a tear, see year to date. The new Civic is especially doing well, partly from new model surge, but also being an exceptional product. The Civic can be had from value model to near luxury at a bargain price. Honda's next up civic platform CRV and Ridgeline should keep the party going.

money on the hood