Fewer Cars Are Being Sold, but New Models Keep Getting Bigger

The automotive market is facing an apparently contradictory trend: sales volumes are falling, while the vehicles on offer are becoming larger on average. SUVs and crossovers continue to gain ground, gradually replacing compact sedans and small cars.

The shift is also changing sales value. Larger dimensions, richer equipment and electrified powertrains are pushing up average vehicle prices, partly offsetting the decline in units sold. For automakers, the challenge will be protecting margins without driving away cost-conscious customers.