Despite the popularity of crossovers and SUVs, the good ol' family sedan still has a lot of backers. Sure, companies like Ford and Mitsubishi are steering away from that direction, but the traditional sedan is still raking in sales. Just ask Honda.
Even if Honda has one of the widest variety of crossovers in the world today, they're not turning their backs on sedans. In fact, with some manufacturers leaving the four-door markets, Honda is seeing it as an opportunity. How so?
Henio Arcangeli Jr., senior vice president, automobile sales division at American Honda Motor Co., said that passenger cars matter. Speaking about the American market, Arcangeli Jr. reckons their sedans still have a lot of room for growth in terms of volume. “If you also consider that many of the domestic manufacturers (General Motors, Ford, Fiat Chrysler) are slowly pulling out of the passenger car business, that leaves a great opportunity for Honda to grow our share and obviously gain volume,” said the executive.
In essence, those who are still looking to buy sedans but can't get it from the US big three can easily turn to Honda dealers for their desired sedan. Honda isn't just sticking to their guns, it looks like they'll be able to capitalize on the supposed shrinking sedan market as well.
Plus, it still offers a lot of volume. In the US at least, the passenger car market has a share of 30 percent, but that still represents a pool of over 5 million potential customers, says Arcangeli Jr. He adds that over half of first time buyers go for sedans for their first Honda. According to the executive, sedans are still profitable for them because they are not sold as fleet vehicles over there.
So despite the gloom and doom over the decline of sedan sales, it's nice to know that there are still a lot of automakers out there who still swear by them. And if Honda keeps their promise to consumers, long-established names such as Civic and Accord won't be leaving anytime soon. Over here, there's still a strong sedan presence from Honda - the City is the country's best-selling Honda here, after all.