There’s apparent hope yet for the ailing sedan segment, thanks to the youngest generations of car buyers, Millennials and Generation Z.
Currently, SUVs, CUVs and pickup trucks dominate the U.S. market, with a share of about 70%, leaving cars in a distinct minority. Gone – for now at least – are cars’ glory days when they were the top segment sellers.
But research commissioned by Nissan indicates Millennials, born between the early-1980s and mid-1990s and the older side of Gen Zers in their 20s and teens, may have their sights set on sedans.
Among overall respondents who don’t currently own a sedan, 78% would consider buying one, and younger respondents show an even higher affinity for the body style, according to Nissan’s research.
Domestic automakers Fiat Chrysler Automobiles, Ford and General Motors are all but turning their backs on sedan production, pivoting instead to utility vehicles and trucks.
But Nissan says it’s sticking with sedans. In that segment, the Japanese automaker recently unveiled its redone 2020 Versa subcompact. Last year, it redid its Altima midsize car and refreshed its Maxima 4-door.
“We see great opportunity in the sedan segment, which is why we’re continuing to launch all-new and refreshed products,” says Rob Warren, Nissan North America’s director and chief marketing manager.
“Sedans are still extremely popular with our customers, so as our competitors exit the category, they’re creating even more prospects for Nissan.”
In its commissioned survey of car owners and non-owners in the U.S. between the ages of 18 and 65 Nissan found:
• 78% of American drivers who don't own a sedan would consider buying one now or in the future.
• 86% of those 18-34 years old (Generation Z and younger Millennials) who don’t own a sedan would consider buying one now or in the future. The same is true for 81% of older Millennials and Generation Xers (age 35-50).
• U.S. sedan owners are just as satisfied with their cars (89%) as non-sedan owners (88%).
• CUVs, SUVs and trucks don’t have a monopoly on functionality. Ninety-five percent of sedan owners listed functionality as the No. 1 thing they love about their car, versus 94% for non-sedan owners.
Perhaps it’s a case of younger and upcoming automotive consumers not wanting to drive the same type of vehicle as their parents. The industry has seen that generational shift happen before, as epitomized by the ad tag line: “Not your father’s Oldsmobile.”
“What we’re hearing from younger buyers is that they appreciate the features, versatility, fuel economy and value in our sedans,” says Warren. “Sedan design has also come a long way, as these traditional 4-door cars shed their generic look, add more technology and take on a more aggressive, stylish profile.
“As sedans become more exciting to look at and to drive, younger buyers are putting sedans at the top of their consideration list.”
