US People Love Big Cars, Small Car Segment Shrinks
In the US, even electric cars have to look like big cars. Small cars don't sell well.
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South Korean automotive giant, KIA, dared to launch a small car in the US market, K4. Even though, American consumers prefer large cars.
KIA has made the New York International Auto Show the launch event for the K4 in the US on Wednesday (27/3/2024). According to the second largest manufacturer in South Korea, the K4 is equipped with the latest technology. KIA has installed an automatic emergency braking system, a lane keeping assist feature, and intelligent cruise control on the K4.
Also read: Xiaomi Electric Cars and China's Ambition to Overtake the West
Various technologies are expected to attract consumers in the US. However, car sales such as K4 have declined in the US. Throughout 2023, only one million cars of the same type as K4 were sold in the US.
In that class, KIA marketed 120,000 Kia Forte. Now, the Forte will be replaced by the K4. "KIA actually offers affordable and easily accessible transportation for the US market," said automotive data analyst at S&P Global Mobility, Stephanie Brinley.
This situation occurs because American consumers remain loyal to choosing large-sized vehicles. Mini trucks, SUVs, and of course, cars with large engine capacity are more attractive.
Also read: Prioritizing Electric Vehicle Development for the Public
In a report on March 11 2024, The Economist wrote that European cars are also getting bigger. However, it still loses to US cars. Throughout 2022, the average car sold in the US will weigh 1,857 kilograms. This figure is 20 percent heavier than the average car weight in Europe.
Large-sized vehicles are more preferred, among other things, due to wide roads and large parking spaces. Regulations also support this.
To encourage the purchase of smaller cars, incentives for the sales of larger cars are continually being restricted. For almost 50 years, there have been efforts to suppress the purchase of larger cars.
Oil prices
In 1973, oil-producing Arab nations reduced shipments to the US. This was a form of punishment because the US supported Israel in the Yom Kippur War. As a result, fuel prices skyrocketed, long queues formed at petrol stations, and a recession occurred.
In 1975, the US Government implemented fuel economy standards for car manufacturers. By 1985, the fuel consumption of all new car models had to be 27.5 miles per gallon. Previously, consumption was only 13 miles per gallon. Currently, the requirement is 40 miles per gallon.
Manufacturers must use more complex machines to be more efficient. However, the cost of making them actually becomes more expensive. This burdens small businesses that rely on large vehicles.
Making light trucks with low environmental standards is considered more profitable than environmentally friendly compact cars. Because of this, automotive manufacturers are enthusiastic about marketing large cars, including SUVs. For Americans, the big car symbolizes freedom, power and adventure.
At the beginning of the 21st century, mini trucks were the best-selling cars in the US. Moreover, fuel in the US was cheaper than other countries throughout the 1990s. Therefore, US residents had no difficulty purchasing large-engine capacity cars. Large cars were also considered safe and comfortable for residents living in suburban areas.
Meanwhile in Europe, many residents live in cities with limited parking space. That is why the sales of small cars in Europe are higher, with up to 36 percent of new cars in 2023 being small cars. In the United States during the same period, only 8 percent are small cars.
Also read: It Takes Time to Form an Electric Vehicle Ecosystem
Another reason European consumers buy small cars is environmental awareness. European citizens are aware of the impact of big cars on carbon emissions.
Even in the US, transportation is actually a major contributor to emissions. Nearly 60 percent of emissions come from cars and other light vehicles.
Not only that, the issue of large vehicles is also a concern. Research from the University of Hawaii shows that the likelihood of a pedestrian dying if hit by a large vehicle reaches 70 percent. If the vehicle is smaller, the likelihood decreases as well.
Rule changes
Therefore, the US Government is trying to change the regulations. One of them is by changing the definition of light trucks. The US Environmental Protection Agency (EPA) has set a limit of 276 grams per kilometer for emissions for vehicles to be called mini trucks. Above that, it is classified as a large truck.
Also read: Europe is increasingly confused because of Chinese electric vehicles
The regulation is part of efforts to boost electric vehicle sales. The target is for two-thirds of new car sales to be electric vehicles by 2032.
However, this may not affect the size of the cars. Many favorite cars, such as the Ford F-150, are still considered light trucks and continue to benefit from lower efficiency standards.
On the other hand, electric cars are also facing the same weight problem as conventional cars. The EPA does not regulate indirect emissions from electric cars, such as batteries. Large electric cars require more electricity and larger batteries. The problem is that batteries contain many rare metals that are harmful to the environment.
Electric car producers are also aware of consumer preferences in the United States. The proof is that the best-selling variant of electric cars in 2022 is the SUV version. (AP/AFP)