Is there Still Space in the Market for Sedans?

Like a slow motion replay, the scene has been unfolding for some time. In fact, go back a couple of years and the writing was on the wall. Australians are obsessed with SUVs. But it’s not just here either, with many other countries following the trend, none more evident than the United States and China.

It has reached the point now where local SUV sales are far and away outperforming sedans, and have blown past 50% of all new car sales. On the one hand, the rise of commercial vehicles like utes has also helped to skew the numbers away from sedans, but the prominence of the SUV category is no statistical anomaly.

With such an evident trend appearing to be set in stone, it does raise questions over the future viability of the sedan format. In particular, will sedans still have a place in the market as SUV sales soar?

An evolving landscape

Cars have always been redefined by the technological progress that accompanies them. That doesn’t just extend to what’s under the bonnet either, nor what’s inside the cabin. It also extends to the shape of the body. We’ve seen an evolution as far as new formats like crossovers, liftbacks and many other identities.

In many respects, there is no reason to believe this won’t continue as means to continue fuelling the sedan market. Design changes may be subtle, but incorporating the feedback we’ve come to expect from those who prefer things like superior room, ride height, visibility and off-road versatility that comes with an SUV. Not to mention, with electrification and autonomy on the way, designs will inherently continue to transform, gradually shifting our taste in vehicles too.

The value proposition will dictate future sales

For now, sedans are still posting sales numbers that are nothing to sneeze at. Sure, they may be declining, but the choice for SUV models has risen astronomically to provide more options than ever before. Motorists’ preferences may have changed but in some ways, historical data may have been otherwise pointed to higher levels of SUV sales – and lower sedan sales – had drivers been afforded more choice at an earlier stage.

It is also a challenge that manufacturers should embrace. They will not only be faced with the task of streamlining their sedan range – as many have done already – but also going about reinvigorating a value proposition into the category to drive sales.

SUV sales may offer auto-makers fatter margins, however their higher prices and at-times polarising looks will still be a barrier to pushing sedans out of the market. So if sedans are then here to stay, car manufacturers must add value in the form of new technology, amenity, efficiency and performance to compete for the shrinking pool of buyers. And it’s many of these criteria that sedans have historically held the upper hand.

Australian Car Sales Continue The Upwards Swing.

VFACTS and the FCAI have released the sales figures for March of 2021 and it’s good news. March 2021 saw 100,005 units moved, an increase of 18,315 over March of 2020. In a year to date sales sense it’s 263,648, up from 233,361 for the same time last year.

SUV sales were up 32 per cent and Light Commercial vehicles were up by 28 per cent. Eight of the top ten selling vehicles for the month were SUVs or Light Commercials, driven by increasing demand from the Private buyers.

Category wise, the passenger segment went down from 21,783 to 21,360. The SUV figures were 51,705 compared to 39,162 in March 2020. LCVs were 23,255, up from 18,165 in March 2020.

In the Passenger car segment Hybrids saw a slight increase, with 2,658, up from 2,441 in March 2020. Hybrid SUVs also saw an increase, with 2,190 in March 2020 up to 3,890 this year. PHEV SUVs doubled from 119 to 258.

For the Light Cars (under $25K), MG’s MG3 took the crown, with 1,238, an increase of over 30%. Third place was a real battle with Suzuki Swift (471), Kia Rio (452), and Suzuki Baleno (432) making a good sales fight, whilst in between was the Toyota Yaris on 636.

Small Cars (under $40K) and Toyota’s Corolla was under pressure from Hyundai’s i30. The Corolla moved 2,892 against 2,514. Third was tight with the Mazda3 just pipping the Kia Cerato, with 1,577 to 1,453. In the plus $40K range it was a battle between the German duo of BMW and Mercedes-Benz. The A-Class stole first on 358, just nudging the 1 Series on 340. The 2 Series Gran Coupe took third on 222.

For the Medium segment it was the Toyota Camry out in front in both the under and over $60K bracket. 852 units moved, ahead of the BMW 3 Series on 567, and the Mercedes-Benz C-Class on 364. Camry, though, was down substantially from 2020, with 1,332 last year.

Kia’s Stinger continued to win the Large Sedan, with 173, down by just two from last year. Porsche’s new Taycan, a fully Electric Vehicle, entered with 161, six ahead of the Mercedes-Benz E-Class.

Kia also outclassed the competition in the People Mover segment, with the Carnival reaching 616, up from 475 in March 2020. Honda’s Odyssey consolidates second with 162, up from 130.

Volkswagen snared third with its new Multivan for 121. In the over $60K segment it was Mercedes, Mercedes, and Toyota, with the V-Class (42), Valente (24) and Granvia (22), duking it out.

There’s been a change in the Sports car segment though. Ford’s Mustang still sold the most with 130 in the under $80K segment, however was outsold by the Mercedes-Benz in the over $80K by the C-Class Coupe and Convertible on 139. The 4 Series from BMW snared 110 for third in both segments.

Moving into the SUV segment and in the Light SUV category Mazda’s CX3 pummeled the opposition in the sub-$40K bracket with 1,744. Toyota’s Yaris Cross slid quickly into second on 846. For third it was another tight battle with Volkswagen’s T-Cross (655) edging out the Hyundai venue and Kia’s new Stonic on 636 and 624.

For the under $40K Small SUVs the Chinese made MG ZS stole the show on 1,510. Hyundai’s recently revamped Kona saw 1,462, just ahead of the Mazda CX-30 on 1,225. Nissan’s Qashqai was the only other entrant into the 1,000 club, squeaking in on 1,003.

Above $40K and Audi’s Q3 found 852 homes, ahead of the Volvo CX40 with 416. 279 and 249 went to Germany, with the X1 from BMW and GLA-Class from Mercedes. Mazda’s CX-5 gave the RAV4 a shake in the Medium sub-$60K, with Toyota selling 3,522 over the Mazda’s 3,022. Nissan’s X-Trail performed solidly for 1,932, just ahead of Subaru’s Forester with 1,439. Mitsubishi’s Outlander 1,085, just ahead of Honda’s CR-V on 972.

In the plus $60K bracket, only Mercedes cracked the 600 mark on 607 for the GLB. The GLC-Class wagon was a distant second with 374, with Audi Q5 on 336. The Lexus NX and BMW X5 went nose to nose on 295 and 291.

In the Large SUVs and under $70K it was Subaru’s outgoing and incoming Outback with 1,341, ahead of the 1,211 for Toyota’s Prado. 1,179 is the number for the Isuzu M-UX. Mitsubishi’s Pajero Sport sold 886, whilst their ancient Pajero, due to be cancelled at the end of the year, sold 292.

Over $70K and it was the X5 on 309. Behind it was some close infighting with the Lexus RX (185), Range Rover Sport (181), and GLE-Class wagon (176) providing stiff competition for each other. Above that it’s a two horse race in the Upper large under $100K, with the LandCruiser and Patrol on 2,244 and 305, selling nearly eight times as many than the full field in the over $100K bracket.

In the ute segment, the 4×4 pickup and cab-chassis bracket had HiLux on 4,068 ahead of Ford Ranger with 3,710, continuing the Japanese brand’s number one position. Mitsubishi’s 4×4 Triton moved 2,223 for third. Isuzu’s D-Max was fourth on 1,338, ahead of the Mazda BT-50 and sibling under the skin, on 1,177.

Notable in those figures is the rise of the sharply priced Chinese built MG range, and the continued growth of non-PHEV Hybrids. Overall for March 2021, Toyota sold 21,319, with Mazda on 10,785. They were the only two brands to see double-digits for the month. Hyundai continues to outpace its Korean sibling, with 6,852 over 5,802. Mitsubishi moved 6,430 whilst Nissan sold 4,559, under the 5,977 of Ford. MG? 3,303 and ahead of Honda.

Ford Transit 12 Seater Bus: An Icon Returns.

Ford Australia has added the 12-seater Ford Transit Bus to the popular Transit line-up. The 410L RWD 12 Seat Bus comes with a 2.0.L EcoBlue diesel with 125kW of power and 390Nm of torque from 1,600-2,300 rpm, driving a ten speed auto and starts from $63,690 (Manufacturer’s Recommended List Price). Options include High Roof with Overhead Stowage Shelves is $2,500, Prestige Paint is $650 and Satellite Navigation with TMC & Enhanced Voice Control is $600.The engine is EURO 6.2 compliant and standard across the range. It features high-pressure direct fuel injection, an advanced aluminium cylinder head, a high-performance variable geometry turbo plus auto stop-start for maximum fuel efficiency and lower running costs. Service intervals are 30,000km or 12 months.

The Ford Transit Bus along with all Transit vehicles, comes with AEB with Pedestrian Detection as standard. There is also Adaptive Cruise Control, Blind Spot Information System (BLIS) with Rear-Cross Traffic Alert, Lane Keeping Aid and Lane Departure Warning with Driver Alert, plus Traffic Sign Recognition. There is also Automatic High-beam, Automatic headlamps, Automatic front windscreen wipers and a heated windscreen. Front and rear park sensors and a rear camera round out the safety package.

A programmable MyKey and FordPass Connect provide a range of services, along with smartphone access, including remote start and stop, allowing drivers to start their vehicle’s engine with a tap of their smartphone in order to heat or cool the cabin before driving. Info and technology are accessed via the 8.0 inch touchscreen which operates Ford’s latest SYNC 3 infotainment system with Apple and Android apps as standard and optional voice activated satnav. It also gives access to FordPass Connect, which offers convenient ‘connected car’ technology, pairing with the available FordPass App to simplify customers’ ownership experience and unlock a range of new services including Remote Start and Stop, Remote Lock and Unlock, Live Traffic Updates, Location Services, Vehicle Status and Health Alerts.

Access to the interior for the nine passenger capacity Transit Bus is via a powered left side door. It’s key fob operated or via a dashboard switch. Opt for the high roof version and there is extra storage and LED lighting.

Andrew Birkic, President and CEO, Ford Australia and New Zealand, says: “We know our customers have always loved the Transit Bus, but there’s been a strong demand for it to come with an automatic transmission. We can now deliver on that wish and help groups of Aussies travel in comfort and style, whether that be sports teams off to their big game, a shuttle to the airport, or colleagues heading to a conference.”

Along with the five-year, unlimited kilometre full factory warranty, the Transit Bus is eligible for the Ford Service Benefits program at participating Ford dealerships, which means for items listed in an A or B standard logbook service for the first 4 years or up to 120,000km, whichever comes first, the most you will pay is $399 (incl GST).

Further adding to the ownership experience, Ford Service Benefits also bring Transit Bus owners Auto Club Membership including Roadside Assistance as well as a Service Loan Car and sat-nav mapping updates where available.

2021 Mercedes-Benz Vito and Valente Released

Mercedes-Benz have been known for producing some quality Light Commercial Vehicles, and the Vito van has been at the forefront of that particular section of their markets. The latest version has been released to the Aussie market.

There will be three engines: The Vito 111 CDI with 84kW and 270 Nm torque, the Vito 116 CDI with 120 kW and 380 Nm torque, and the Vito 119 CDI with 140 kW and 440 Nm torque with a combined fuel consumption of 6.7 l/100 km plus CO2 combined emissions 176 g/km. The Vito 111 has a combined fuel consumption of 6.2-6.3 l/100 km with CO2 combined emissions 163-166 g/km whilst the 116 has combined fuel consumption of 6.7 l/100 km and CO2 combined emissions 176-178 g/km.

The range has been simplified and extra features added. The rear view mirror is now a digital item, whilst the reverse camera has been upgraded to suit. The interior has been enhanced as has safety with DISTRONIC and Active Brake Assist. Up front, the grille has been restyled. The Mercedes star plate is centrally positioned in the radiator grille and has three black louvres on all but the 111 where they are chromed.

Diane Tarr, Managing Director Mercedes-Benz Vans, said: “The versatility of Vito really sets it apart. In Australia, examples of its use include an RACV home and roadside assist vehicle, an Australian Post delivery van, an Optus technical service vehicle and as a trusted tool for many smaller business operations like florists or even mobile fitness instructors. It is a genuine trade specialist and fleet all-rounder for a wide range of different customers.

The Vito’s look and style is often symbolic of the business it supports. The newly designed radiator grill now makes it an even more attractive representation, and with more standard safety, new assistance systems and an upgraded infotainment offering, it will continue to meet the demands of our customers.”

The Vito 111 packs a 1.6L engine and six speed manual driving the front wheels. There is also a 2.1L engine and seven speed auto for the rear wheel drive versions. The Vito 116 has a 120kW/380Nm diesel as the spearhead and moves to a medium length wheelbase as the starting point. This, says M-B, provides an optimal carry capacity as a new starting point. Proven engine and transmission line up continues with reduced complexity, and emphasis on power and carrying capacity.

Active Brake Assist starts with an audible warning tone and a visual alert. If sensors read the driver has applied the brakes, ABA adds extra braking assistance, but if there is no response from the driver the system takes over and performs active braking manoeuvres. The sensors also alert to stationary objects and pedestrians. DISTRONIC is also available with Vito for the first time and standard on the 119. Blind Spot Assist and Lane Keep Assist, formerly options, are now standard.

The digital inside rearview mirror takes a feed from the high definition camera mounted in the rear window section and transmits to a 1600 x 320 screen. There is image processing to ensure that light balance is even and displaying as clear an image as possible. It also provides a wider view than a traditional rear-view mirror.

An updated infotainment system sees a 7.0 inch touchscreen with smartphone app compatibility. The screen is also the default viewer for the reverse camera. Bluetooth is also standard and has audio streaming and hands-free calling.

ILS, or Intelligent Light System, is standard on the 119. It’s a full LED system, covering the indicators, DRLs, low, high, and cornering lights. The spread is speed dependent also, and with Highbeam Assist Plus adjusts to suit speed and the lighting conditions. It does this by actuating the dipped-beam, partial main-beam and main-beam headlamps as required.

The exterior now has new colours including Graphite Grey and Selenite Grey, along with Steel Blue and Hyacinth Red metallic. There are two 18 inch alloy wheels, one with a 5-twin-spoke design in Tremolite Grey with a high sheen finish, and one with a 5-spoke design in black also with a burnished finish. There are also 17 inch black painted alloy wheels available.

The Vito Crew Cab dual purpose vehicle, which can carry up to six passengers, is available with the 116 or 119 CDI engine. The Valente 8 seater people mover is available with the 116 CDI engine. this highlights the flexibility of the Vito range, with body lengths, the engine choices, and styles.

Speak to your local Mercedes-Benz dealership for a test drive.