European medium car market comes under threat

The upper-medium car market is down 17.7 per cent for the year-to-date but the MPV and SUV sectors, including their related sub sectors, continue to grow. Research by Jato Dynamics found that consumer demand is continuing to shift from established market sectors to newer segments such as the small SUV and mid-sized MPV.

Despite the pending launch of new generation products in the upper-medium car market, including the Ford Mondeo and Renault Laguna, the analysts said there was no indication that the downward sales trend would change in the medium to long term. “With manufacturers employing ever more sophisticated marketing techniques, consumer demands are becoming increasingly complex and many families now seek vehicles that better reflect their lifestyle aspirations,” said Nasir Shah, international sales and marketing director of Jato Dynamics. “This has been one of the key drivers behind the success of the SUV and MPV markets where vehicles offer greater flexibility and greater scope for tailoring to individual requirements.”