What you need to know

The US new compact car and crossover market reached an estimated 5.4 million vehicle sales in 2013, and comprised about a third of all new car sales. As this market continues to outpace general growth in the new car market, manufacturers looking to keep up with the competition will need to focus more on this segment in the coming years. This report provides a detailed review of the compact car and compact crossover market in the US. It provides insight into the external and internal factors affecting compact car and compact crossover sales, ownership, and purchasing intent.

The report explores what consumers are looking for when purchasing a compact car and crossover, and it delves into what deters shoppers from considering compact vehicles, as well. The report also looks into the growing luxury aspect of compact sales, and details emerging subsegments of the small car space, including consideration among consumers for subcompact crossovers, subcompact cars, roadsters, and city cars.

This report builds on the analysis presented in Mintel’s Small Cars – US, September 2012.

Definition

For the purposes of this report, Mintel considers the compact car and crossover market as being for new vehicles only (not used), and has used the following segment definitions:

  • Two-seater roadsters/compact cars (A-class vehicles): any car that can only seat two adults

  • Mini compacts/city cars (A-class vehicles): Less than 85 cubic feet of passenger & cargo volume

  • Subcompact cars (B-class vehicles): Between 85-99 cubic feet of passenger & cargo volume

  • Compact cars (C-class vehicles): Between 100-109 cubic feet of passenger & cargo volume

  • Subcompact crossover (B-class): any car-based utility vehicle that has less than 109 cubic feet of passenger & cargo volume and has a GVWR (Gross Vehicle Weight Rating) of less than 6,000 lbs.

  • Compact crossover (C-class): any car-based utility vehicle that has between 110-130 cubic feet of passenger & cargo volume and has a GVWR (Gross Vehicle Weight Rating) of less than 6,000 lbs.

Data sources

Sales data

  • Market Size and Forecast: Morgan & Company, Inc., West Olive, Mich.

  • Segment Performance: Morgan & Company, Inc., West Olive, Mich.

  • Leading Companies and Brand Share: Morgan & Company, Inc., West Olive, Mich.

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer purchase of, attitudes, and behaviors toward compact cars and compact crossovers. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in November 2013 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms

Abbreviations

The following is a list of abbreviations used in this report.

AALA American Automobile Labeling Act
ACS American Community Survey
CAFE Corporate average fuel economy
CUV Crossover utility vehicle
EIA US Energy Information Administration
EIU Economist Intelligence Unit
EPA Environmental Protection Agency
FRBNY Federal Reserve Bank of New York
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Terms

Generations, if discussed within this report, are defined as:

World War II/Swing Generations Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 68-81 in 2014.
Baby Boomers The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 20 and 37.
iGeneration Born between 1995 and 2007, members of iGen are aged 7-19 in 2014.
Emerging Generation The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet-unnamed generation are younger than 7.
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