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Customer LoginsDodge, Nissan and Kia aim to move up in the small car arena
Three new cars are striving to gain ground in the huge non-luxury small car segment. The 2013 Dodge Dart was launched last June, the redesigned 2013 Nissan Sentra last November, and the 2014 Kia Forte sedan arrives later this month. This segment accounted for 16% of all new vehicle registrations in 2012, second only to the midsize cars 17.6% among the 32 segments tracked by Polk. The non-luxury small car segment has been dominated for years by such well-known models as the Corolla, Civic and Focus, all of which have benefited from high model-level and make-level loyalty. In fact, in 2012 these three models by themselves captured 37% of the segment.
Perhaps just as important, these three models' long-term successes have created owner bodies that dwarf those of any other small cars. As of this past January, there were over 12 million Corollas, Civics and Focus' on the road, more than 37% (not coincidentally the same figure as their segment share) of all small cars in operation. In contrast, there were just 3,752,065 of all Dodge, Nissan and Kia compact cars on the road, regardless of their names, equal to about 12% of all small vehicles in operation.
With this imbalance in mind, the marketers at Dodge, Nissan and Kia are offering cars with customer benefits not offered by the competition. The Dart is being positioned as an all-new vehicle providing a combination of features one would only expect far in the future. The Sentra offers an array of features commonly perceived to be available only on a luxury vehicle, all at an economical starting price in the $16,000 range. And, the Forte like the Dart, is being positioned as all-new in every way including the exterior, interior, powertrain and systems such as steering.
The respective OEMs and their marketing teams hope to communicate the differential advantages of their small cars effectively enough to conquest owners of the more well-known models. Only by doing so can Dodge, Nissan and Kia hope to expand in this huge part of the market. And as the entire new vehicle industry moves downstream based on size to meet stringent CAFÉ standards, Polk's automotive forecast predicts this segment will only get bigger. Also, these three makes will have to move quickly to conquest competitive owners as the new models' times in the spotlight are limited; a new Corolla arrives early next year and a new Cruze soon after that.
Tom Libby is manager, loyalty practice and industry analysis, IHS Automotive
Posted 5 March 2013