Get set to sell a lot more SUV, ATV and UTV tires
Luxury SUVs are set to outsell luxury cars in the U.S. for the first time to secure a 55 percent share of the market in 2016, and that gap is set to widen to 60 percent in 2017.
That’s according to a new Luxury Market Report from car shopping and information network Edmunds.com.
It comes as another report, from analysts at ReportsnReports.com, predicts the global all-terrain vehicles’ market is set to experience an 8.2 percent compound annual growth rate between now and 2020.
According to the ATV market report, one of the primary drivers in the market is growing use as a means of transport on uneven roads. The ATV market is experiencing increased demand because of its ability to move quickly in mountainous and rocky terrains. American consumers are using ATVs in forests, agricultural lands and mountains.
The augmented demand for utility vehicles (UTV), especially in countries like the U.S. and Canada, is attributed to the increasing adoption of these vehicles by the defense sector for quick patrolling during combat operations. UTVs are also used for farming, hunting and carrying small construction equipment in forests.
Women fuelling growth of luxury SUV market
By comparison, in the luxury market, Edmunds’ executive director Jessica Caldwell says the boom in sales is being driven by “low gas prices, changing consumer tastes and attractive new vehicles” creating the perfect environment for luxury SUV sales.
This market shift is largely being led by women, the report states. Fifty-seven percent of women who bought a luxury vehicle in 2016 bought an SUV, compared to 49 percent of men. Women are also becoming increasingly more influential in the overall luxury market. This year just more than 40 percent of luxury vehicles will be sold to women, compared to 36 percent in 2011.
“Luxury automakers who anticipated this trend are really reaping the rewards: they’re attracting previously untapped buyers, increasing brand loyalty and enjoying healthy profit margins,” Caldwell said. “It’s a winning scenario that shows no signs of slowing down.
If the trends continue and the reports’ predictions are correct, tire dealers can expect to sell a lot more SUV, ATV and UTV tires over the coming years.