Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Small cars gain share through the recession
- In the face of high fuel prices, small cars offer all-around savings
- All three segments see dramatic growth in Q1 2011
- Wider market shifts toward efficient vehicles
- Moving to a small car culture: Incentivizing consumers to buy small
- Japanese earthquake shakes up supply chain
- Competition from other segments necessitates a shift in focus
- Upper-tier models dominate small car sales, but smaller might become big
- Moving away from the econo-box to a focus on style
- Hyundai takes lead in small car sales
- Marketing the car that’s right for the driver
- Moving ahead with fuel-efficiency in hopes the consumer catches up
- Americans historically prefer larger vehicles
- Vast majority utilizing small car as primary vehicle
- Potential for growth seen in future consideration
- Urbanites more small car friendly
Insights and Opportunities
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- Go beyond the miles
- Making the purchase process an enjoyable one
- Interactivity beyond the purchase
Inspire Insights
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- Inspire Trend—“Attention Economy”
Market Size and Forecast
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- Key points
- Small cars outperform rest of industry
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- Figure 1: Total U.S. new small cars sold/leased, 2006-13
Market Drivers
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- Gas prices fuel shift
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- Figure 2: U.S. gasoline national average price per gallon, 2006- 2011
- Consumer response to high prices
- Cheaper credit
- Wider market shifts toward efficient vehicles
- CAFE: New regulations challenge industry to sell more small cars
- CAFE standards create need on supply side to sell small cars
- Consumer subsidies down, but manufacturers now on the dole
- Moving to a small car culture: Incentivizing consumers to buy small
- Japanese earthquake and tsunami
- Macroeconomics: A mixed outlook promotes lower-tier sales
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- Figure 3: Employment status, population 16 years and older, 2000-10
- Consumer confidence on the rise
- Disposable income up, but consumers still cautious
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- Figure 4: Disposable personal income and personal consumption, 2005-10
- Figure 5: Attitudes toward discretionary spending, by household income, October 2010
Competitive Context
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- Key points
- Competition from larger new vehicles
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- Figure 6: Small car sales and share of all cars and all automobiles, 2006-2010
- In good times and bad…
- Price comparison
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- Figure 7: Pricing on best-selling small cars, 2008-10
- Competition from used vehicles
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- Figure 8: Trade-in values of popular small cars, May vs. June 2011*
Market Segmentation
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- Key points
- Lower tier making market share gains
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- Figure 9: U.S. sales of new compact cars, by segment, 2009 vs. 2010
- Figure 10: U.S. sales of new compact cars, by segment, 2010-2011
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- Figure 11: U.S. sales of new compact cars by segment, 2006-13
Segment Performance—Upper Tier
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- 2011 sales rosy in largest small car segment
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- Figure 12: U.S. sales of upper-tier new compact cars, 2006-13
Segment Performance—Lower Tier
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- Lower tier on the move
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- Figure 13: U.S. sales of lower-tier new compact cars, 2006-2013
Segment Performance—Specialty Tier
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- Specialty-tier rise in 2011 bodes well for new releases
- New specialty vehicles coming to market
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- Figure 14: U.S. sales of specialty-tier new compact cars, 2006-2013
Leading Cars
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- Overview
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- Figure 15: Sales of new small cars, by brand and model, 2010-2011
- Kia models post strong gains in share
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- Figure 16: Best-selling small vehicles, 2010-11
- Toyota
- The road ahead: A small car Prius
- Honda
- Ford
- Hyundai
- Nissan
- General Motors
- The road ahead
- What happened to the Smart car?
Marketing Strategies
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- Automakers engaged in aggressive marketing to spark consumer demand
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- Figure 17: Small car advertising expenditures, 2008-09
- Marketing themes
- Digital media
- Automaker websites
- Toyota
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- Figure 18: Prius Goes Plural, May 2011
- Honda
- Ford
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- Figure 19: Ford homepage, May 2011
- Hyundai
- Kia
- Nissan
- GM
- Social media
- Ford’s Spokespuppet a hit
- Honda responds to love with more love
- Online videos
- Hyundai gets aggressive
- Television advertising
- Mini Cooper’s rally
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- Figure 20: Mini (Mini Cooper) ad, 2010
- Mazda hawks individuality
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- Figure 21: Mazda 3 ad, 2011
- Hyundai offers legroom
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- Figure 22: Hyundai Elantra ad, 2010
Innovations and Innovators
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- Making fuel-efficiency even more efficient
- Tech firm algorithms to provide more relief at pump
- Everyone gets in on the market
- Nontraditional vehicles explore nontraditional markets
Household Ownership
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- One in eight households own a small car
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- Figure 23: Compact car ownership, upper tier vs. lower tier, 2006-10
Recent Purchase of a Small Car
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- Key points
- Life transitions, parent purchases for teens, help to drive sales
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- Figure 24: Types of car purchased in past 24 months*, by age, January 2011
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- Figure 25: Types of car purchased in past 24 months*, by household size, January 2011
Factors Influencing Small Car Purchases
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- Key points
- Practicality drives purchases
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- Figure 26: Factors affecting purchase decision for small cars, by gender and age, January 2011
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- Figure 27: Factors affecting purchase decision for small cars, by size of household, January 2011
Segment Owned/Planned to Purchase
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- Key points
- Larger compacts rule, but interest in subcompacts and microcars growing
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- Figure 28: Type of small cars owned, by age, January 2011
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- Figure 29: Type of small car planned for purchase, by gender, January 2011
How Small Cars are Used
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- Key points
- For most small car owners, the small car is the primary vehicle
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- Figure 30: Compact cars as primary or secondary vehicle, January 2011
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- Figure 31: Role of compact car in future purchase, January 2011
- City driving
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- Figure 32: Usage for local/city driving among compact car drivers, by gender, January 2011
Interest in Future Purchase of a Small Car
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- Key points
- Nearly half would consider purchasing a small car in the future
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- Figure 33: Future interest in purchasing a small car, by gender, January 2011
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- Figure 34: Future interest in purchasing a small car, by age, January 2011
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- Figure 35: Future interest in purchasing a small car, by household income, January 2011
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- Figure 36: Future interest in purchasing a small car, by household size, January 2011
- Figure 37: Future interest in purchasing a small car, by presence of children, January 2011
Reasons for Not Purchasing a Small Car
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- Key points
- Size, safety, and horsepower most-cited reasons
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- Figure 38: Reasons for not purchasing a small car, by gender, January 2011
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- Figure 39: Reasons for not purchasing a small car, by age, January 2011
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- Figure 40: Reasons for not purchasing a small car, by household income, January 2011
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- Figure 41: Reasons for not purchasing a small car, by household size, January 2011
Race and Hispanic Origin
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- Figure 42: Types of car planed for purchase in next 24 months, by race and Hispanic origin, January 2011
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- Figure 43: Types of car purchased in past 24 months, by race and Hispanic origin, January 2011
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Cluster Analysis
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- We’ve Got One, Thanks!
- Demographics
- Characteristics
- Opportunity
- Switchers and Sharers
- Demographics
- Characteristics
- Opportunity
- This One’s for Me
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 44: Proportion of clusters in recent/future car purchasers, April 2011
- Figure 45: Type of car purchased in past 24 months, by clusters, April 2011
- Figure 46: Intent to purchase a vehicle in next 24 months, by clusters, April 2011
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- Figure 47: Factors affecting purchase decision for small cars, by clusters, April 2011
- Figure 48: Type of small car owned, by clusters, April 2011
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- Figure 49: Type of small car intended for purchase, by clusters, April 2011
- Figure 50: Compact cars as primary or secondary vehicle, by clusters, April 2011
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- Figure 51: Future compact car purchase as primary or secondary vehicle, by clusters, April 2011
- Figure 52: Usage for local/city driving among compact car drivers, by clusters, April 2011
- Cluster demographics
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- Figure 53: Clusters, by gender, April 2011
- Figure 54: Clusters, by age, April 2011
- Figure 55: Clusters, by household income, April 2011
- Figure 56: Clusters, by race, April 2011
- Figure 57: Clusters, by Hispanic origin, April 2011
- Cluster methodology
Custom Consumer Groups
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- Key points
- Analysis by type of compact owned
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- Figure 58: Number of vehicles in household, by type of compact owned, October 2009-December 2010
- Planned compact car purchases among current compact car owners
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- Figure 59: Next vehicle purchase new or used, by type of compact car owned, October 2009-December 2010
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- Figure 60: Next vehicle purchase new or used, by type of compact car owned, October 2009-December 2010
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- Figure 61: Next vehicle purchase by premium compact car owners with plans to purchase a new/used vehicle, by type of compact car owned, October 2009-December 2010
- Urbanites vs. suburbanites
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- Figure 62: Factors affecting purchase decision for small cars, urbanites vs. suburbanites, January 2011
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- Figure 63: Reasons for not purchasing a small/compact vehicle, urbanites vs. suburbanites, January 2011
Appendix—Other Useful Consumer Tables
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- Figure 64: Compact car ownership, foreign vs. domestic, 2006-10
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- Figure 65: Types of car purchased in past 24 months, by household income, January 2011
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Appendix—Trade Associations
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