Home > Uncategorized > Consumers Now Switch to Small Cars

Consumers Now Switch to Small Cars

Small vehicles means small fuel tank, small fuel consumption, and small fuel costs. Am I right? Of course I am. Want some proof? Then read this out.

Power Information Network (PIN), a division of J.D. Power and Associates that provides transaction information and automotive solution for consumers has already gathered their real-time retail transaction data from various dealerships all over the United States. It shows that consumers who own large trucks and SUVs are now switching to smaller vehicles as fuel gas prices continue to increase. This is because small cars consumes less fuel compared to large trucks and utes.

“We’re seeing a broad, long-term but gradual movement to smaller vehicles. For example, during periods of high gas prices over the past two years, we’ve seen movement from larger to smaller SUVs. However, the total SUV pie remains largely intact.” says Tom Libby, Senior Director of Industry Analysis at PIN.

According to the data gathered by PIN from February up to April 2007, the sales for full size pickup truck, mid size truck, and large utility vehicle segments significantly drops as the fuel prices continue to rise. In fact, owners of large trucks and utility vehicles trade for smaller vehicles or in another vehicle in the same segment. According to PIN, not all vehicle segments are affected with increasing oil prices. The demands for large and midsize cars, small crossovers, and small SUVs remain unchanged.

In addition, The consumer demands for smaller vehicles and the increasing gas prices also triggers the growth of vehicle models equipped with 4-cylinder engines.

Bob Schnorbus, Chief Economist at J.D. Power and Associates concluded: “The recent strength of the small vehicle segments – pricing, styling and an increasing number of new models – is receiving an additional boost from high gas prices. We’re expecting the small vehicle segments to continue to grow, regardless of gas prices, but higher gas prices certainly will help these segments relative to others.”

Well, if gas prices continue to increase in the coming months or years, maybe we wont see cars rolling in the streets… just bicycles, probably with Centerline wheels? Lol!

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