Is there Still Space in the Market for Sedans?

Like a slow motion replay, the scene has been unfolding for some time. In fact, go back a couple of years and the writing was on the wall. Australians are obsessed with SUVs. But it’s not just here either, with many other countries following the trend, none more evident than the United States and China.

It has reached the point now where local SUV sales are far and away outperforming sedans, and have blown past 50% of all new car sales. On the one hand, the rise of commercial vehicles like utes has also helped to skew the numbers away from sedans, but the prominence of the SUV category is no statistical anomaly.

With such an evident trend appearing to be set in stone, it does raise questions over the future viability of the sedan format. In particular, will sedans still have a place in the market as SUV sales soar?

An evolving landscape

Cars have always been redefined by the technological progress that accompanies them. That doesn’t just extend to what’s under the bonnet either, nor what’s inside the cabin. It also extends to the shape of the body. We’ve seen an evolution as far as new formats like crossovers, liftbacks and many other identities.

In many respects, there is no reason to believe this won’t continue as means to continue fuelling the sedan market. Design changes may be subtle, but incorporating the feedback we’ve come to expect from those who prefer things like superior room, ride height, visibility and off-road versatility that comes with an SUV. Not to mention, with electrification and autonomy on the way, designs will inherently continue to transform, gradually shifting our taste in vehicles too.

The value proposition will dictate future sales

For now, sedans are still posting sales numbers that are nothing to sneeze at. Sure, they may be declining, but the choice for SUV models has risen astronomically to provide more options than ever before. Motorists’ preferences may have changed but in some ways, historical data may have been otherwise pointed to higher levels of SUV sales – and lower sedan sales – had drivers been afforded more choice at an earlier stage.

It is also a challenge that manufacturers should embrace. They will not only be faced with the task of streamlining their sedan range – as many have done already – but also going about reinvigorating a value proposition into the category to drive sales.

SUV sales may offer auto-makers fatter margins, however their higher prices and at-times polarising looks will still be a barrier to pushing sedans out of the market. So if sedans are then here to stay, car manufacturers must add value in the form of new technology, amenity, efficiency and performance to compete for the shrinking pool of buyers. And it’s many of these criteria that sedans have historically held the upper hand.

Fuel Prices: New Car?

It’s unfortunate to see that the prices for fuel in Australia have been on the steady increase across.  Retailers suggest that the increase in the cost of fuel has come about through record oil prices and new logistical challenges for acquiring the fuel.  It’s definitely worth shopping around to ensure that you can get the best price on your fuel at the pump, as prices do differ from retail outlet around town and across States.

Just recently, regular unleaded petrol (91) had a national average of $2.14 per litre, yet the cheapest was found in Carnarvon, Western Australia, where it was sold for $1.59 per litre.  The most expensive was located in Derby, Western Australia, where (91) was seen being sold for $2.42 per litre.  The same trend is occuring for (95), (98), (E10), and Diesel.

As for how long these high fuel prices will continue to last, fuel industry analysts say that it’s anyone’s speculation at the moment.  Peter Khoury, NRMA spokesman, recently said: “These prices are completely off the scale, more than twice what [motorists] were paying in April 2020… We have no idea where we would set the ceiling at this point.”

It begs the question: Should a motorist that has to do quite a few kilometres each week look at purchasing a more fuel efficient car?  The answer, I guess, is up to you.  It depends on how tight your budget is.  If you can afford a new car, or at least a second car that’s extra-miserly on fuel, then I’d say go for it – particularly if you’re having to do high mileages.  Then again, if you are not travelling far each week, say to the shops and the occasional trip elsewhere, then staying with the car you have and keeping your travel to a minimum is probably the way to go at this stage, and we’ll sit tight and see where/when all this price rising will come to an end, revising it again in another few months.

You might be a motorist who needs to upgrade for various reasons including the rising fuel costs.  In this case, being in the market for a new car and wanting to purchase a vehicle that delivers the best fuel-efficiency has to be a pivotal point of purchase for you.  Here is a list of the most fuel-efficient vehicles in 2022 across numerous categories, something that you might find useful right now.

Note – Where “Diesel” hasn’t been mentioned after the model, assume that it’s “Petrol” version…

Small cars (Hatchbacks):

Toyota Yaris Hybrid Hatchback                                        3.3 litres/100 km

Toyota Yaris Hybrid Hatchback

Toyota Corolla Hybrid Hatchback                                    4.2 litres/100 km

Toyota Yaris Hatchback                                                       4.9 litres/100 km

Mazda 2 Hatchback                                                              5.3 litres/100 km

Toyota Corolla Hatchback                                                  6.0 litres/100 km

Mazda 3 Hatchback                                                              6.2 litres/100 km

MG3 Hatchback                                                                     6.7 litres/100 km

Hyundai i30 Hatchback                                                       7.4 litres/100 km

Family & fleet (Sedans):

Toyota Camry Hybrid Sedan                                             4.7 litres/100 km

Toyota Camry Hybrid Sedan

Toyota Camry Sedan                                                             6.8 litres/100 km

Small-Med SUV

Toyota RAV4 Hybrid 2WD                                                  4.7 litres/100 km

Toyota RAV4 Hybrid

Toyota RAV4 Hybrid AWD                                                  4.8 litres/100 km

Mazda CX-3 2WD                                                                   6.3 litres/100 km

Mazda CX-30 2WD                                                                6.5 litres/100 km

Toyota RAV4 2WD                                                                 6.5 litres/100 km

Mazda CX-5 2WD                                                                   6.9 litres/100 km

Toyota RAV4 AWD                                                                7.3 litres/100 km

Mazda CX-5 AWD                                                                  7.4 litres/100 km

Mitsubishi Outlander 2WD                                                7.5 litres/100 km

Mitsubishi Outlander AWD                                               8.1 litres/100 km

Large SUV

Toyota Kluger Hybrid AWD                                                4.7 litres/100 km

Toyota Kluger Hybrid AWD

Hyundai Santa Fe AWD Diesel                                          6.1 litres/100 km

Kia Sorento AWD Diesel                                                     6.1 litres/100 km

Toyota Prado 4WD Diesel                                                  7.9 litres/100 km

Mazda CX-9 2WD                                                                   8.4 litres/100 km

Toyota Kluger 2WD                                                               8.7 litres/100 km

Toyota Kluger AWD                                                              8.9 litres/100 km

Toyota LandCruiser 300 Diesel                                        8.9 litres/100 km

Mazda CX-9 AWD                                                                  9 litres/100 km

Kia Sorento 2WD                                                                    9.7 litres/100 km

Hyundai Santa Fe 2WD                                                        10.5 litres/100 km

Nissan Patrol Y62                                                                   14.4 litres/100 km

Ute

Nissan Navara STX 4WD Diesel                                        7.8 litres/100 km

Nissan Navara STX 4WD Diesel

Toyota HiLux SR5 4WD Diesel                                          8 litres/100 km

Ford Ranger XLT 4WD Diesel                                            8 litres/100 km

Isuzu D-Max XT 4WD Diesel                                              8 litres/100 km

Mazda BT-50 SP 4WD Diesel                                             8 litres/100 km

Mitsubishi Triton GLX+ 4WD Diesel                               8.6 litres/100 km

Ford Ranger XLT 4WD Diesel                                            8.9 litres/100 km

LDV T60 Max 4WD     2.0L Diesel                                      9.2 litres/100 km

GWM Ute 4WD           2.0L Diesel                                      9.4 litres/100 km

Toyota HiLux Workmate 2WD                                          10.9 litres/100 km

Ram 1500 DS Limited                                                           12.2 litres/100 km

Ram 1500 DT Express                                                          12.2 litres/100 km

Chevrolet 1500 LTZ                                                               12.8 litres/100 km

Van

Hyundai Staria Load van Diesel                                        7 litres/100 km

Hyundai Staria Load van Diesel

Ford Transit Custom van Diesel                                       7.3 litres/100 km

Toyota Hiace LWB van Diesel                                           8.2 litres/100 km

LDV G10 van Diesel                                                               8.2 litres/100 km

LDV G10 van                                                                            11.1 litres/100 km

Toyota’s Hybrid vehicles, if they suit you needs, top their classes with fuel bills that were roughly half their nearest rivals.  The Hybrid versions of the Toyota Yaris Hatch, the Toyota Corolla Hatch, the Toyota Camry Sedan, the Toyota RAV4 SUV, and the Toyota Kluger are the ones I’m talking about here.

Motorcycles

There are those of us who just don’t do motorcycles.  The thought of hurtling along the motorway with a massive engine between your legs sounds downright alarming to many people, and I get that.  Considering that a motorcyclist does have less protection than most road users does put a lot of people off riding a motorcycle.  However, a careful and skilful rider can manage the risks and keep well out of harm’s way.

Maybe you already ride a motorbike.  You might even be wondering about getting your motorcycle license.  If you haven’t experienced riding a motorcycle, then the chances are you’ll enjoy the thrill of riding a motorbike safely.  Safely being the important word.  Once you’ve mastered the skill of riding a motorbike safely, travelling about Australia on two wheels instead of four can be a fun and exciting experience you’ll enjoy for years to come.  Out in the open, taking in the sights and smells, experiencing the elements, being one with the machine as you lean through the corners and feel the response are all reasons why many people love riding motorcycles.

As a tool to combat rising fuel prices, the motorbike could be a useful option.  Whether you’re single or married, the motorbike can combine with your other means of transportation to get you where you need to go.  They use a lot less fuel than a car and have the size (or lack of size) that enables them to slip through congested areas and park in tight spaces.  If emissions are an issue for you, then the motorbike generates less of an environmental impact than a car does.

Even with the recent global health concerns and restrictions on our daily lives, over the last couple of years the motorcycle has enjoyed an increase in sales throughout Australia.  Over the 2020 period, new motorcycle and scooter sales in Australia were up 6.2% from the previous year, showing a strong demand for individual mobility transport options, of which the motorcycle is the best.  And throughout 2021, the growth trend mushroomed with an increase of 16.6%.  That equated to a total of 102 new units sold, the highest level for 15 years.

Honda, Yamaha, and Kawasaki claim the biggest chunks of the market share, while Suzuki, KTM, BMW, and Harley Davidson deliver strong motorbike sales.  All motorcycle manufacturers have enjoyed the stronger consumer demand for motorbikes, resulting in better sales figures.

Many people find motorcycle riding a relatively easy task but riding out on the road still comes with a fair share of risk.  Lack of experience and recklessness are often key areas associated with motorcycle accidents.  Damp and slippery roads need to be recognized and ridden over with care.

Allowing plenty of space between you and other road users is a must, and as you ride be aware of other people’s actions, intersection dynamics, any oncoming cars, and any car (whether moving or stationary) in front of you as you ride.  If you are reading the other road users well, reading the road conditions right, and keeping your distance, then motorcycling is relatively safe.

There are plenty of nice sport bikes out there like the Buell Hammerhead, Ducati V4 or the Yamaha YZF-R7.  These are great bikes for a fast ride over a short distance.  They can make useful commute bikes as well.

Buell Sportbike

The touring bikes and dual purpose-bikes are better set up for a comfortable seat and long distance ergonomics.  These are swift bikes and can handle two-up and luggage no problems.  They also make a decent commuter.  Bikes like the Triumph Tiger 1200, MV Augusta Turismo, KTM 1290, Kawasaki Versys, Honda CB500X and BMW 1600 GT are great options in this class of bike.  They are a heavy bike, so not ideal for learners and the inexperienced.

MV Augusta Turismo

Scooters and smaller bikes like the Honda Navi, BMW CE O4 Electric Scooter, and Honda CB300 are handy inner-city commuters and great or a learner rider.

BMW Electric Scooter

A Roadster like the Harley Davidson Street Glide ST, Harley Davidson Forty-Eight, Indian Chief, and Triumph Bonneville Bobber are all about the wow factor and looks.  These are sexy bikes, but some people also find their relatively relaxed riding position, which includes arms and legs pointing forwards, nice for cruising on longer rides.

Harley Davidson Forty-Eight

An FCEV for Our Environment

With the rising concerns over greenhouse gas emissions, the development of ammonia fuelled vehicles as environmentally friendly cars would have to look rather promising.  A car running on NH₃ – now what’s not to like about that?

Many scientists believe that it is urgent to reduce CO₂ emissions because of the global warming effect that the gas has on the climate around the globe.  Despite CO₂ in the atmosphere being great for plant growth (some of the edges of the earth’s deserts are greening up again with increased CO₂ in the atmosphere), and the earth’s water cycle playing a pivotal role in governing the earth’s temperature, the drive to create taxing emission standards and expensive alternatives continues to drive government policy worldwide.  What if we gradually changed over to another source of energy so that everyone in the world could afford the switch, allowing people to maintain a higher standard of living?

Using CO₂–free fuels to reduce the level of CO₂ emissions could be a viable option in the current climate.  So, what about ammonia?

An internal combustion engine (ICE) burns a fuel.  Basically, you can convert an engine to run on any fuel such as fossil-fuels, hydrogen and ammonia, and there are many ways to do so.  ICE engines are very good in combination with battery and hybrid systems.  It would be a perfect solution to make a hydrogen-fuelled vehicle with hydrogen that has been cracked out of ammonia and stored in the vehicle.  The ammonia would then be used to drive the electric propulsion system because an electric propulsion system is highly efficient.  That would be a perfect vehicle.

The battery system in this model would not need to be anywhere near the size of a pure EV and anywhere near the weight.  For instance, in a Tesla, the whole EV platform under the car is a battery pack that is massively heavy.  A clean-burning ICE producing heat-waste from the combustion process could use this heat-waste to warm up the cabin’s interior on a cold day, cool the cabin down via a heat exchanger, and could also be used to cool and heat the battery accordingly for optimum battery operating temperatures.

You can store accessible hydrogen in the form of ammonia (NH₃).  Unlike hydrogen gas, which requires very low (cryogenic) temperatures to liquefy, ammonia becomes a liquid at –34°C.  Ammonia also does so at room temperature and at 9 atmospheric pressures, making it much more convenient to use as a transportation fuel.  Ammonia is comparatively inexpensive to produce, and the hydrogen can be separated out using catalysts without undue losses.

Essentially, you have a car with a combustion engine that is burning the hydrogen that is cracked out of the stored ammonia onboard the car to produce electricity.  The engine would have an alternator as an electric motor that would power the drivetrain with electricity at close to 99% efficiency.  This set-up is known as a Fuel Cell Electric Vehicle (FCEV).

The FCEV above uses stored ammonia that’s cracked onboard the car to produce hydrogen to run the electric drive train – only emitting water vapour and warm air as exhaust, and is considered a zero-emission vehicle.  Now that sounds pretty smart, efficient and green to me!