Family Mid-Size Sedan Sales Plummet As Demand Reaches 5-Year Low

In the US, despite this year being one of the industry’s best ever through August, demand for mid-size family saloons is at a five-year low.

It seems that with each passing month, the segment is fading even faster into obscurity. Sales for the mid-size segment fell 3.4% in the first quarter of 2016, 13% in the second quarter and a whooping 21% so far in the third, compared to 2015.

According to Autonews, models such as the Nissan Altima, Ford Fusion, Hyundai Sonata and KIA Optima have all had to suffer as sales plunged by more than 30% in the month of August alone. Chrysler 200 sales fell by two thirds, whereas for all of the 16 mid-size nameplates, the decline evened out at around 27% – a loss of more than 60,000 units.

In comparison, sales of compact & smaller cars fell just 3.6% last month, more or less in line with the industry’s overall 3.5% decline – which proves that the market shifting away from mid-size saloons isn’t a fluke occurrence.

“That larger sedan buyer just sees more value in the SUVs or CUVs,” said Mike DeSilva, co-owner of Liberty Hyundai in Mahwah, NJ. “That’s just where the activity is. And heading into the end of summer and going into winter, we’re really going to get into SUV season.”

Even through the SUV boom of the 90s and early 2000s, mid-size cars remained the industry’s powerhouse segment, with sales topping 2.4 million units in each of the past four years. In 2016 though, compact crossovers are primed to take over as No.1 for the first time as mid-size cars will likely fall to fourth. In fact, since June, mid-size cars have proven less popular than even full-size pickups and compact cars.

“It doesn’t matter how deep you discount the leasure suit and bell-bottoms – nobody’s going to buy them if they’re not fashionable,” said Eric Lyman, VP of industry insights at TrueCar. “I don’t think they’re ever going to go away, but there’s a lot more people who don’t consider them anymore.”

Last December, Toyota head of US operations Bob Carter actually predicted that the Camry (America’s No.1 car for 14 consecutive years) would be outsold by the company’s own RAV4 within five years – though it might happen even sooner if the decline remains constant. In August, the Camry trailed not only the RAV4 (for the first time ever), but also the Honda CR-V and Nissan Rogue.