DETROIT (AP) – Sport utility vehicles are unstoppable – and automakers hope to cash in on the boom with some updated models coming to this year’s Chicago Auto Show.
One out of every three new vehicles Americans bought last year was an SUV, according to Kelley Blue Book. SUV sales rose 12 percent to more than 5.5 million. That was double the pace of the industry as a whole.
Strong demand is likely to continue this year, says Jesse Toprak, president of Toprak Consulting Group. SUV sales may not see double-digit growth, since overall sales are expected to slow as the U.S. market nears a peak of 17 million vehicles. But SUVs should still outpace sales of cars, Toprak says.
Small SUVs like the Honda CR-V have been the fastest growing segment in the market for the last three years. They appeal to both young families and aging Baby Boomers. Low interest rates, easing credit standards and new versions of popular models like the Jeep Cherokee and Subaru Outback have also fueled demand.
More recently, low gas prices helped boost sales of bigger SUVs like the Chevrolet Tahoe and Lincoln Navigator. Last June, when gas prices peaked at $3.76 per gallon, SUV sales made up 33 percent of new vehicle sales, while small cars made up 20 percent, according to Ward’s AutoInfoBank. By December, when gas prices had fallen to $2.63, SUV market share rose to 35 percent, while small cars fell to 16 percent.