SUV Sales Up Despite Gas Cost

DETROIT--According to a Polk study, soaring gas prices haven’t altered strong sport utility vehicle sales. SUV sales continue to rise despite gas prices leaping from an average of $1.22 in 1999 to more than $1.60 throughout the summer and fall of 2000

With the average fuel economy at about eight miles per gallon less for light trucks than the average car (20.3 vs. 28.1 in 1999), SUV owners were among those feeling the brunt of climbing fuel costs. However, during the 2000 model year, SUVs comprised the largest share of automotive sales in the United States. While SUV market share dropped slightly from the first half of the 2000 model year to the second half (21.6 percent to 20.5 percent respectively), the SUV segment replaced the mid-size car during the 2000 model year as the vehicle segment with the largest market share, said Polk.

According to the Polk study, SUV buyers rated the importance of gas mileage significantly lower than all other new vehicle buyers. Compact SUV buyers appeared to be the most price-sensitive, rating the importance of gas mileage higher than mid-size and full-size SUV buyers. During the first half of the 2000 model year, there was more than a 20 percent difference in the fuel economy importance rating for SUV buyers compared to all new vehicle buyers.

“From the economical compact SUVs to the spacious full-size models, our research suggests that SUV buyers are placing other vehicle needs above fuel economy concerns,” said Diane Kusnierczyk, Polk’s loyalty research manager. “Even though gas prices may continue to rise, the strong appeal of SUVs is likely to remain constant. Faced with a variety of selections and new model introductions, consumers are ultimately driven by their individual vehicle needs.”

According to Polk’s analysis, for many compact SUV buyers, this marks their first light truck purchase. More economically driven than buyers of larger SUVs, compact SUV buyers are generally less affluent. With some compact SUVs rivaling cars in fuel economy, they offer a smooth transition from the buyer’s previous mid-size or small car.

Compact SUV buyers want a vehicle that is not only functional, reliable and practical but sporty and recreational as well. Not looking for a family vehicle, they are less likely to be married or have children than buyers of the larger SUVs.

Similar to compact SUV buyers, most new buyers of a mid-size SUV owned a car prior to their SUV purchase. Fuel economy is less of a concern among these buyers, with most reporting a household income of at least $75,000. More likely to be married, mid-size SUV owners are looking for a reliable, functional vehicle suited for a family.

Full-size SUV owners are not new to the light truck segment and are most likely to have moved up from a mid-size SUV. Faced with the lowest fuel economy of the three SUV groups, full-size SUV buyers are the most affluent. With a majority being married and having children at home, it is not surprising these buyers are looking for a family vehicle that is functional and spacious, she said.

Polk research revealed that once in the truck segment, SUV owners are likely to stay there. Compact SUV owners tend to move to the mid-size SUV, while mid-size SUV owners moved up to the full-size SUV. Few mid-size and full-size SUV owners purchased the smaller compact SUV.

Polk’s Manufacturer Loyalty Excelerator report, which is the basis for the Polk Automotive Loyalty rankings and annual awards, provide insight into this type of consumer behavior, Kusnierczyk said. The report measures loyalty throughout the entire model year so that the industry can keep abreast of loyalty trends as they occur, she said.

Founded in Detroit in 1870, Polk launched its motor vehicle statistical operations in 1922 when the first car registration reports were published. It now provides multi-dimensional intelligence information solutions to nearly every segment of the motor vehicle industry as an analytical consultant and statistician, as a provider of database marketing services, as a supplier of vehicle histories and as a data enabler for geographic information systems. Based in Southfield, Mich., Polk is a privately held global firm, currently operating in Australia, Canada, China, France, Germany, Holland, Spain, the United Kingdom and the United States.

For more information, contact www.polk.com.