Domestic Automaker Market Share for the Crossover Segment Set to Shrink
As domestic brands dominate the pickup truck segment, their market share of the crossover segment is beginning to decline
Crossovers and pickup trucks are two of the fastest-growing vehicle segments across the automotive industry at the moment. When it comes to pickups, domestic automakers have a strong hold in terms of U.S. sales.
On the other hand, recent projections suggest that the market share of crossovers will be dominated by foreign automotive companies.
An Assortment of Vehicle Options: 2018 Chevrolet model lineup
Currently, 45.9 percent of crossovers sold in the U.S. are built by domestic automakers. By 2023, that market share is set to decrease to 35.2 percent.
This phenomenon would be a repeat of what happened to the passenger car segment many years ago. With domestic automakers competing against both themselves and foreign automakers, their hold on the passenger car segment was relinquished to outside automotive organizations.
Speaking of the passenger car segment, domestic automakers currently have a 28.2 percent market share for these vehicles. By 2023, that market share is set to decrease to 16.4 percent.
Back in 2005, domestic automakers sold the majority of passenger cars nationwide, with a 53.5 percent market share. They had an even stronger control of the crossover market, with 61.5 percent of crossovers sold in the U.S. coming from domestic manufacturers.
One segment that domestic automakers have been able to maintain control of is pickup trucks. Currently, 81.6 percent of trucks sold in the U.S. come from domestic brands.
That’s only slightly down from the 86.2 percent market share on trucks domestic brands held back in 2005. What’s more, the domestic market share for trucks is set to rise to 85.6 percent by 2023.
Chevy’s Signature Crossover: 2018 Chevrolet Equinox
Any number of factors could shift market predictions toward more favorable outcomes for domestic brands. Chevy and other American automakers are set to soon introduce more desirable crossover models, such as the upcoming Chevrolet Blazer. Meanwhile, proposed tariffs on foreign vehicles could make Asian and European crossovers too expensive for the average consumer.
Still, unless a drastic change does occur in the near future, domestic automakers will have to settle with a majority share of just the pickup truck segment.
News Source: Bloomberg