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Small-Car Shift Not Permanent, Study Says

Gas Prices Down From Record $4.11

Tuesday, August 19, 2008 – updated: 10:50 am MDT August 19, 2008

With gas prices above $4 per gallon for much of June and July, auto consumers were more interested in smaller, more fuel-efficient vehicles.

But as gas prices have subsided from those records, people are spending less time looking for gas-sipping cars, according to Edmunds.com

"There's been a rush to small cars, but that doesn't necessarily mean the shift is permanent," said Jeremy Anwyl, CEO of Edmunds.com. "With the initial shock of high gas prices fading, consumers are returning to rationality and again viewing gas consumption as just one of many factors when considering their next vehicle. And as gas prices actually decline, this trend could accelerate."

Edmunds.com data tracks consumer interest by measuring its Web site traffic to each vehicle segment. The data shows the trend toward small vehicles is leveling off, and interest in previously declining segments -- such as compact crossover SUVs -- is on the rise. Interest in the popular hybrid segment is down 34 percent compared to June as gas prices have declined.

"Automakers made some big changes to their production plans based on preferences in the second quarter," said Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. "But if gas prices continue to recede to the long-term trend line, automakers may find that they overreacted to a temporary shift in consumers' preferences."
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