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Customer LoginsA small segment, but one worth watching
Certain new vehicle categories, such as large pickups, midsize cars and crossovers, tend to get a lot of attention and media coverage. But there are smaller categories that are worth watching because, among other things, someday they may develop into bigger, more important segments.
One of these obscure segments can be called, for lack of a widely accepted name, compact MPVs. This segment started in 2003 when the funky, boxy Scion xB hit the market. At the time the XB was described as a toaster on wheels or an under-nourished minivan. But, the xB did well enough that others were forced to follow, and now there are at least five of these funky models (see table). All five have a crossover-like design and are clearly targeted at the young buyer. In January the Soul was the segment volume leader with almost 6,000 registrations. This tally was more than double a year ago, and the third highest volume among all Kias after the Sorento and Forte. Overall segment registrations in January climbed to 13,224, almost double a year ago and more than the entire Chrysler make and close to the Buick total.
Despite the fact that these vehicles are meant to attract young buyers, customer age data suggest these models are also appealing to the older consumer. The average age of the xB buyer is actually higher than that of other Scion buyers, while the typical Element and Soul customers are 50 years of age, same as the rest of the buyers for their respective brands.
The compositon of this category will be changing in the near future, as Honda phases out the Element and Hyundai launches the iconoclastic Veloster (two doors on one side and one on the other). If the category contines to resonate with the American consumer, other makes will have no choice but to get involved.
Posted by Tom Libby, PolkInsight Advisor, Polk (04.03.2011)