With gas prices soaring, the humble sedan is making a comeback
Recent US sales data reveals a “sedanaissance” among major automakers like Honda, Hyundai, and Toyota.
Americans appear to be rediscovering the sedan.
May sales data from automakers including Toyota, Honda, Subaru, and Hyundai shows an unmissable recent surge in sales of sedans across the US, revealing some possible SUV fatigue creeping into the American market.
Like commercial trucks driving 4% slower or longer lines at Costco, the trend appears to be an effect of higher gas prices. (As of Monday, regular gas is up 45% since the war in Iran began, per the American Automobile Association.) The smaller sedans are more fuel-efficient than SUVs, and they’re also typically less expensive than the $49,461 industry average for an automobile.
In May, Hyundai’s Sonata sales grew 39% from the same period last year, outpacing the growth of the automaker’s SUV lineup. Similarly, Subaru’s WRX outpaced the Forester, Honda’s Accord outpaced the CR-V, and Toyota’s Camry outpaced — and outsold — its popular RAV4.
The recent sales data shows sedans becoming more popular following years of SUV dominance.
Passenger cars made up just 18% of new vehicle sales last year, down from about 50% in 2010. Many automakers have even scrapped their sedan offerings entirely: GM sunset the Chevy Malibu at the end of 2024, and now its Chevy unit offers zero passenger cars and seven gas-powered SUVs. Ford, meanwhile, phased out its passenger cars by mid-2020, so if you want a Ford car, you’re out of luck unless it’s a Mustang.
But looking ahead, more sedans may be on the way. GM has said it’s working on a sub-$30,000 compact car, while Ford is reportedly studying whether a sedan could be produced profitably on its new electric assembly line.
