Mark Guarino notes that "small cars offer many benefits, including lower purchase costs and better fuel efficiency than larger models." Indeed, Mintel research shows that most small car buyers choose to go compact because of fuel economy. Across income groups, 79% of respondents who purchased small cars say they selected their current vehicle because of gas mileage.
Moreover, 42% of small car owners bought their vehicle to replace a similar-sized vehicle in the same category, according to Mintel. "There is great potential for growth in the small car market," states Mark Guarino. "Automakers just need to figure out how to best package and sell the benefits of small cars to consumers."
Mark Guarino believes making luxury features such as surround sound stereo and heated seats standard in small cars could help lure drivers to the market. "The transition from expensive, gas-hogging SUV to cheaper, fuel-efficient compact will feel like less of a sacrifice if the smaller car offers similar luxury features," he says. "Automakers need these innovative strategies to show consumers they are committed to change."