Sport Utility Vehicle Owners Keep Coming Back for More
19 January 2000
Sport Utility Vehicle Owners Keep Coming Back for More Polk Reports SUV Buyers Likely to Make It Their Next New-Vehicle Purchase
DETROIT, Jan. 19 -- Sport Utility Vehicle owners seem to
reserve a special place in their garages for an SUV. Although there is some
defection to pickups and mid-size cars, the SUV has been the preferred choice
by a wide margin when purchasers of SUVs during this decade have looked for a
new vehicle, according to an analysis released today by The Polk Company.
Of those who purchased an SUV previously and then bought a new vehicle during
the 1999 model year, a little less than half (47 percent) went home with
another SUV. Pickups were the next highest preference at 15.8 percent, with
mid-size cars a distant 11.6 percent.
NEXT VEHICLES PURCHASED BY SUV OWNERS*
Segment Percentage
SUV 47.0
Pickup 15.8
Mid-size Car 11.6
Luxury Car 8.2
Small Car 6.3
Minivan 5.0
Sports Car 4.7
Large Car 0.8
Full-size Van 0.6
Source: Polk's Manufacturer Loyalty Excelerator(TM) Study, 1999 Model Year
Commenting on the findings, Kim Pike, an automotive industry analyst at
Polk, said, "The love of trucks, which may have begun in the 1980s with the
minivan, has continued into the 1990s with the versatile SUV. And there is no
measurable indicator that this will change anytime in the near future."
Overall, the SUV market has risen steadily from 12 percent of vehicle
sales in 1995 to 19 percent this year. This includes full-size, compact and
mini-SUVs, as they are currently classified. Pike predicts that this portion
will grow to more than 20 percent in 2000 and increase to more than 23 percent
during the succeeding five years. It is the only truck segment experiencing
significant growth.
In addition, this growth of SUV market share refers only to the current
model classification. Excluded are the new products being introduced, the
sport wagons and SUV-pickup hybrids that combine passenger comfort and storage
space in a rugged vehicle. Automakers have sensed that they need to offer
some type of product-line SUV vehicle to keep prosperous customers loyal to
their brand.
"A key reason for the continued popularity of the SUV in America," Pike
said, "has to do with the active lifestyle that many families enjoy. A good
family car can do everything the family does. For many, the SUV is the best
product in the market due to its versatility. The extended economic expansion
has also enabled many families to buy a higher priced vehicle that costs a
little more to operate."
On the other hand, Pike warned that high fuel prices are a threat to
low-mileage vehicles like the SUV. However, evidence suggests that it is a
minor threat. While crude oil prices have more than doubled in the last year
($11 to $25 per barrel) and gasoline prices are at a four-year high, there has
been only a small short-term drop of 10,000 units sold in recent months.
Another socio-economic influence on vehicle type preference, according to
Pike, may be the growing popularity of Edge cities and remote suburban
communities where rugged terrain vehicles are a must.
"Lifestyle changes which begin in middle America don't always get much
attention," said Pike, "but truck sales have become vitally important to
profits in North America. Everyone has gotten the message by now."
Polk is a global company delivering multi-dimensional intelligence to the
auto industry to enhance the relationships consumers have with brands.
Through lifetime understanding of individuals, Polk helps clients maintain
current customers, win new ones and build their brand loyalty. Based in
Southfield, Mich., Polk is a privately held firm currently operating in
Australia, Canada, China, France, Germany, Holland, Spain, the United Kingdom
and the United States.
For more information, contact Dan Willis, Polk's director of public
relations, at 248-728-7827 or by pager at 800-406-8457.
