SUV Sales Again Carrying The Auto Industry

If it seems like déjà vu, it's not just you: SUVs are again leading the charge on new vehicle sales.  Buoyed by low gas prices and growing millennial families, SUV sales have increased by 6 percent from 2016 to 2017 (through October)—even though the overall car market has declined by 2 percent during the same timeframe.

Of course, with a jump in SUV and truck sales, midsize and large car sales are down accordingly.  Even as full-line automakers are seeing their SUV sales climb, sales of vehicles like the Toyota Corolla and Camry, and full-size sedans like the Chevrolet Impala, are tumbling.  For full-line automakers, this is not necessarily an even tradeoff; trucks and full-size SUVs tend to have generous margins that can more than offset the loss in sales of cars.  While Toyota and GM can take solace in increasing sales of SUVs to offset the impact of dropping car sales, other brands with more car-centric lineups, such as Kia and Chrysler, are feeling the sting