Sales slump track: Where do cheap small cars go?

We live in an era where fuel efficiency and affordability are increasingly being prioritized. The first is due to climate change and the second is the unstable economic situation.

However, demand for the smallest and cheapest cars on the market has declined over the past decade, as buyers flock to higher ground SUVs.

This, in turn, has seen brands stop making their smallest and cheapest cars at nautical speeds, with the number of Micro and Light vehicles sold falling from 38 model years. 2013 down to 16 models by the end of 2022.

Accordingly, the lack of maximally affordable used cars has certainly put upward pressure on prices on used cars, as buyers on a tight budget opt ​​for used cars. .

We looked at sales figures from 2013 to present and mapped changes in the Micro and Light Vehicle categories, as determined by the industry statistics database VFACTS.

We’ve put these two layers together because, frankly, for the average customer, they’re pretty much the same thing. Kia Picanto (Micro) and Toyota Yaris (Light) are hardly different.

As the table shows, in 2013, Small and Light Cars sold 136,300 units, equivalent to 12% of the overall new car market share in Australia.

Since then, sales and market share have declined in a linear fashion, hitting an absolute low at the height of COVID (less than a third of the 2013 total).

Even taking into account the small recovery since then, by the end of 2022, sales and market share of Micro and Light Cars are only a third of the 2013 total.

A major reason for this beyond changing consumer sentiment – and until recently low interest rates – has prompted car brands to include more driver-assistance and luxury features. into even the cheapest cars, thus pushing prices higher. than wage growth.

Because these segments are so cost-sensitive, that hurts. It also means that the buyer can bite the bullet and buy that bigger car because the cost difference over a pay period isn’t really that big.

Correlation and causation don’t always match, but consider: In 2013, the small SUV segment accounted for 6.6% of the market, from a list of 20 models. By 2022, this market (currently divided into light SUVs and small SUVs) accounts for 18.2% of the market share, out of a total of 44 models.

So, in the time frame where the Compact/Lightweight car market share plummeted to a third of its original size, the Light SUV/Small SUV market share tripled and the selection of vehicles model more than doubled.

Best selling mini car 2013-2022

1. Kia Picanto: 31,566 (2016-22)
2. Mitsubishi Mirage: 29,740 (2013-22)
3. Fiat 500: 12.705 (2013-22)
4. Nissan Micra: 9513 (2013-17)
5. Hold the spark: 8203 (2013-19)

Best selling light car 2013-2022

1. Mazda2: 102,589 (2013-22)
2. Toyota Yaris: 95.298 (2013-22)
3. Hyundai Accent: 86,390 (2013-20)
4. agile suzuki: 74,305 (2013-22)
5. Kia Rio: 67,256 (2013-22)
6. Volkswagen Polo: 59,174 (2013-22)
7. Honda Jazz: 55,028 (2013-21)
8. Grade 3: 41,733 (2017-22)
9. Holden Barina: 40.034 (2013-19)
10. Hyundai i20: 39,865 (2013-15, 2021-22)

Micro and light car sales – a decade of decline

Sales, sharing and selection of micro and light vehicles are tracked