SUVs now the vehicle of choice

Media Release 31 January 2012

SUVs now the vehicle of choice

Local new car buyers are opting for Sport Utility Vehicles (SUVs) in increasing numbers to the point that they now represent the largest segment in the market. Figures released recently by the NZ Transport Agency (NZTA) show that with sales of 18,684 units in 2011, SUVs now enjoy a 29 percent share of the market – up from 16,326 units and 26 percent share in 2010. Overall that represents a 14 percent increase in sales in a market that was only up by 3 percent last year.

The result is that models such as the Toyota Highlander, Holden Captiva, Ford Territory, Kia Sportage and Hyundai Santa Fe, amongst others, all experienced good volume growth in 2011.

As it has for some time now, the majority of the growth in SUV sales has come at the expense of the traditional large car segment, which at just 9 percent, is now the smallest in the market. Interestingly, in 2006 SUVs and large cars together made up 38 percent of all passenger car sales, the same proportion as they did last year, only now in significantly different ratios. Since 2006 large cars have fallen from 17 percent of the market, while SUVs have grown from 21 percent.

Commenting, MTA Marketing and Communications General Manager Ian Stronach said “This shift in buyer preference is quite intriguing, especially at a time of rising fuel costs and an increasing focus on environmental issues. More buyers than ever obviously feel that SUVs represent a better option in this regard, but SUVs generally are at the heavier end of the scale, and are not usually renowned for their fuel economy.”

The shift in the performance of the major segments of the passenger vehicle market, gives further rise to the suggestion that a range of factors, both rational and emotional are now involved in the buying process.

Not surprisingly, light cars (typically 1.6 – 2.0 litres) continue to find favour and are up from 17 percent to 19 percent of the market in 2011. Sales of small (typically less than 1.5 litres) cars, those most associated with fuel efficiency, continues to decline however, and this segment, the market’s second biggest, now accounts for 27 percent of the market compared to 29 percent in 2009.

Stronach adds “What we are seeing is not unique to New Zealand. Many overseas markets are experiencing similar changes. Lifestyle demands and the perceived advantages of SUVs means that they will continue to dominate markets for the foreseeable future. The effect of this on other classes of vehicle will vary, but at this stage, it provides a very uncertain future for the traditional large car that’s been part of the local lifestyle for so long.”

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