Passenger car sales Plunge during July experienced a sharp decline, according to major automobile manufacturers. Ford saw passenger car sales plummet by 28%, while, Nissan reported a 21.1% decrease. However, SUVs are in high demand and look set to bolster the new car market. This is good news for the auto industry following the revelation that the cost of new cars will increase. Furthermore, SUV sales will help to ensure that new car sales Plunge hit their 17 million unit projection by the end of the year.
A rise in demand
Close to 50% of the vehicles sold in America in July were SUVs. An increasing number of individuals are shunning passenger cars in favor of SUVs and pickup trucks due to the additional space and comfort such vehicles offer. This is of great benefit to the economy and to auto manufacturers as SUVs have a higher profit margin than compact vehicles. It also shows that the public are still keen to invest their cash in the industry, despite the type of vehicle they require changing.
How manufacturers are responding
Rather than push to increase their passenger car sales Plunge vehicle manufacturers are dropping production numbers. As a result, Ford have halted production of their Sedan and the once popular Ford Fiesta is next on its list of cessations. Instead, manufacturers who once prided themselves on their small models are embracing the changing needs of the public by launching new models, such as the Subaru Ascent and the Volkswagen Atlas in a bid to win their custom. Then, of course, there’s the big muscle SUVs which are also on the market, including the Mercedes-Benz GLS 63 and the Porsche Cayenne Turbo S.
Insuring an SUV is where your investment really pays off
While their additional size is of benefit, it’s an SUV’s low cost insurance which truly makes them stand out from the crowd. Of the ten least costly vehicles to insure, nine of the vehicles on the list are SUVs, meaning owners are getting a great deal both in and out of the vehicle. One of the cheapest to insure SUVs to make the list is the Jeep Wrangler which has seen record sales this year. Protecting your vehicle on the road is a necessity, especially when you’ve spent thousands on a new one. Therefore, also ensure your SUV is covered before you drive it off the forecourt.
SUVs look set to shape the future of the auto industry as a growing number of Americans turn their backs on passenger cars. To meet this growing demand, manufacturers are investing time and cash in new SUV models to ensure the public get want they want.