Smaller SUVs Win Bigger Share of Car Market

joshua lockhart 

This article is about the introduction/growth of new "petite SUVs" into the auto mobile market. Auto makers are excited to introduce this new cheaper product because of the decrease in the popularity of sedans. The article mentions the growth of the subcompact SUV over the last decade, saying " The subcompact SUV category barely existed a decade ago but has grown rapidly in recent years, from only one model in 2009 to roughly 16 this year". This quotation does well to represent the product life cycle of the small SUV. It is clearly in the growth stage and it has not reached its peak because it is still selling only about 700,000 a year. This is a relatively small number if you compare it to the sales of midsize sedans. The article then goes on to address who auto makers are targeting with this product and it says "Car companies are hoping these pint-size SUVs will woo younger buyers and car shoppers on a tight budget, with many priced between $20,000 and $25,000". The article addresses the the target market for this product. They are attempting to sell the to the younger population. They are doing this by setting a lower price so that younger people can afford the vehicle. They also market their advanced safety features so that parents as well as young inexperienced drivers feel safer driving their vehicles. The companies are having trouble selling to their target market because SUVs are associated with older people. The younger population doesn't want to drive a "mom car" and this is really hurting the sales of the vehicle to young people. On the other hand many annalists believe that the small SUV is an ideal investment for older people because the lower prices are attractive to people on fixed income.


I chose this article because I am a part of the younger generation and I found that there was a lot of truth in what the article had to say. The small SUV doesn't appeal to my tastes at all and I see why people associate it with the older parent generation. The price is affordable compared to other cars on the market right now but there are so many other, more youthful cars for about the same price. Auto makes need to change their target market to the older population or they much create a more youthful design and eliminate the stigma of SUVs so that they are no longer associated with parents. 

link to the article:https://www.wsj.com/articles/small-suvs-loom-larger-for-car-makers-11556184600?mod=searchresults&page=1&pos=1