July 24, 2007
Midsize van segment continues to shrink and lose market share, says J.D. Power
Westlake Village, California – The midsize van segment continues to lose market share even as it loses models, according to the Power Information Network (PIN), a division of J.D. Power and Associates. The segment includes such vehicles as the Dodge Caravan, Honda Odyssey and Toyota Sienna. In June, the midsize van market share was just 4.4 per cent of the new vehicle retail industry, slightly more than one-half of its share in 1995.
Over the first six months of 2007, the segment’s market share dropped to 5.3 per cent of the total new vehicle market, down from 8.5 per cent in 1995.
“Probably the most dominant reason for the decline of the midsize van segment is the emergence of midsize and compact crossover models as viable alternatives to midsize vans,” says Tom Libby, senior director of industry analysis at PIN. “Midsize van owners have been switching to crossovers at a brisk and growing rate.”
In addition to losing market share, the number of midsize van models on the market has decreased to 15, down from a peak of 21 in 2004. Of the 15 models currently on the market, six have recently been discontinued or will be in the near future, based on information from their manufacturers. J.D. Power forecasting expects the segment to continue to lose market share over the next few years, before levelling off at approximately 4.7 per cent.