More than two thirds of owners of Sport Utility Vehicle (SUV) and Crossover Utility Vehicle (CUV) owners who returned to market in the first four months of 2017 acquired another new SUV or CUV.
SUV/CUV loyalty has grown from under 53 percent in 2012 to more than 66 percent through April, and is 13 percentage points higher than the industry average of 52.6 percent, IHS Markit says. Pickup loyalty rates are also increasing, with nearly 51 percent of pickup owners acquiring another one during the first four months of the year. These two categories have grown in part due to low gas prices.
At the same time, sedan loyalty rates have softened, with rates declining 7.6 percentage points to 48.6 percent since 2012, when 56.2 percent of sedan owners acquired another sedan, according to IHS Markit analysis. If this trend continues through the rest of the year, this will mark the first year in which less than half of sedan households acquired another one when they returned to market. IHS Markit data indicate in the first four months of 2017, two thirds of sedan owners defected to an SUV/CUV – representing nearly 300,000 transactions.