'Affordable' Sedans Are Luring Buyers…Including Young Ones

TL;DR

Sedans are regaining appeal among budget-conscious and younger buyers as average vehicle prices near $50,000 and SUVs dominate at high cost.

Key Points

• 1.Sedans have collapsed from 42% to 13% of the U.S. market since 2000. SUVs rose from 19% to 58% by 2025, aided by higher profit margins and lenient light-truck fuel economy regulations that incentivized automakers to push them.
• 2.Foreign automakers are leading the sedan affordability pitch. Kia's K4 and K5, Toyota's Camry and Corolla, and Volkswagen's Jetta are all cited as affordable entry points; Kia reports its K5 has the youngest average buyer age of any model in its lineup.
• 3.A regulatory reclassification could give sedans a structural tailwind. NHTSA is revising fuel economy rules so some crossovers may no longer qualify as light trucks, potentially incentivizing automakers to build more sedans and coupes again.