Vehicle segment changes leave remaining niches to incumbents

The key vehicle segmentation trend in recent years, aside from powertrain shifts, has been the rise and rise of SUVs and crossovers in all vehicle sizes. Traditional vehicle types, notably sedans and estates, have seen their shares reduce, with several OEMs exiting these segments. However, for those remaining in traditional segments, demand continues to exist, and competition is, ironically, reducing as the number of offerings declines. In some cases, vehicle companies are returning to segments they previously said they would leave. Just as consumers in many markets are not taking to electric vehicles (EVs) in the numbers expected or hoped for, demand for traditional vehicle types is not necessarily following automakers’ strategies either.