Jun 22, 2026
KEY TAKEAWAYS: Lower prices and better fuel economy are fueling renewed consumer interest in sedans over SUVs. Automakers including Ford, GM, Honda and Infiniti are exploring or expanding sedan offerings. Industry analysts say younger buyers and affordability concerns are reshaping vehicle pre ferences. Experts expect sedans to regain market share, particularly as electric vehicle platforms become more common. Consumers on car shopping sites are increasingly searching for a most unlikely vehicle: The good old sedan. Just when you thought it was all but gone, or at least a niche category, auto shopping site experts have noticed the search trend and say there are a few factors driving the newfound interest in sedans — the top being affordability. According to Cox Automotive’s April data, the average transaction price for a new compact car was $27,590 compared with the price for a compact SUV at $37,514. In the midsize segment, the average transaction price for a new sedan was $34,069, compared with a midsize SUV at $50,380. Another factor driving the interest in sedans is fuel economy, considering the average price for gasoline is $4.51 a gallon as of May 13. A gasoline-engine sedan can get about a 10 mpg advantage in average combined fuel economy compared with a large gasoline SUV, though the difference is not as stark when comparing sedans to smaller SUVs and hybrids. Take those factors and add in the buzz from automakers in recent months as they tease the idea of reviving sedans and it begs the question: Is the sedan on the verge of a comeback? “I do think there’s become kind of, an SUV fatigue I’d call it, that everyone is experiencing from consumers to car designers to rental agencies,” said Karl Brauer, executive analyst at iSeeCars. “There’s a group of people looking just to not look like everyone else. A sedan offers that — which is funny because they were considered boring and now they are cool.” Many auto industry observers point to the younger generation as holding the keys to the sedan’s future as the SUV becomes “your father’s Oldsmobile” in their eyes. Take the study from Escalent’s EVForward 2025 Teenagers DeepDive released in February 2026. It surveyed more than 1,000 teenagers ages 14 to 19 to understand their attitudes toward vehicles. When we asked what vehicle they imagine driving in the future, 51% said a sedan, 31% chose an SUV and 14% a truck. Finally, there is another big advantage to bringing back the sedan for some automakers. “Right now, so many automakers have exited the sedan space that it could almost be considered a ‘white space’ category — one that new or returning players can join and make a big splash,” said Aaron Bragman, Detroit bureau chief at Cars.com. “The stalwarts are still there, like Toyota, Honda, Hyundai, and Kia, but others like Mazda, Nissan, Ford, Chevrolet, Chrysler, all would make news with a return to the segment.” More electric, more sedans The consumer’s shift in taste from sedans to SUVs is reflected by the vehicle composition across the industry today. According to Sean Tucker, managing editor of Kelly Blue Book, which is owned by Cox Automotive, in 2016 there were about 130 sedan models for sale. This year, there are about 50 across the industry. When it comes to affordability, the numbers are just as stark. In 2017, automakers across the industry built 61 models priced at $60,000 or higher, Tucker said. This year, there are 114 models in that price range. Compare that with models priced around $25,000. In 2017, automakers made 36 models priced at $25,000 or under. Today, they make a scant four. “One thing that automakers are hearing both from shoppers and from their dealers is that they need a better mix and more affordable cars,” Tucker said. “I think we’re going to see a little bit of a return of sedans and it will accelerate in the more distant future when America goes electric to a greater degree.” That’s because electric cars are built on flexible platforms that make it relatively cheap for an automaker to scale up into a large vehicle or scale it down into a smaller vehicle, Tucker told the Detroit Free Press. “There’s just more commonality of parts between, say, the Chevy Equinox EV and the Cadillac Celestiq that costs (consumers) 10 times as much,” Tucker said. “Now that they have those platforms established, it’s more affordable for them to introduce it in various other forms. The more electric we go, the more often you’ll see more sedans.” The hand-built ultra-luxury Celestiq car has a starting price around $340,000. The 2026 Chevrolet Equinox EV SUV starts at $34,995. Another reason carmakers may shift to offering more sedans is a change in presidential administrations, he said. Currently, the Trump administration is not enforcing Corporate Average Fuel Economy standards. So it doesn’t matter what the rules say if an automaker doesn’t have to comply with them, Tucker said. “But they did rewrite the standards in such a way that, if the next president comes in and starts to enforce them, some vehicles that counted as trucks under the old standard, would count as cars under the new standard,” Tucker said. “That would actually hurt the automakers and require them to get a little bit more efficient. So one way that they can catch up quickly is just to build a greater mix of sedans.” The Detroit Three rethink the sedan The thought of sedans is an idea never far from Ford Motor CEO Jim Farley’s lips. For the past several months now, Farley has been unable to resist mentioning sedans even though the Dearborn-based automaker stopped making them in 2020. In August, Farley told YouTube Channel’s “Forrest’s Auto Review” of a sedan: “We’re thinking about, ‘Should Ford do a rear-wheel-drive, high-performance, affordable sedan with a really cool closure system in the back … as an all-electric?’ ” Farley again teased the idea of a sedan in an appearance on the “Rapid Response” podcast that aired April 17, saying Ford has gotten its manufacturing costs competitive enough where it might make sense to reconsider the sedan, adding, “If we do compete in those — I would say ubiquitous segments — we better bring something new to the table.” Ford spokesman Dan Barbossa declined to comment further, saying the company does not discuss future product plans. But other Detroit automakers also may be giving sedans consideration. General Motors is reportedly planning to launch its first Buick sedan since 2020, when it discontinued the Regal. The timing and other details about such a vehicle are unknown other than reports saying the small car would be built alongside and on the same platform as the next-generation Cadillac CT5 and the Chevrolet Camaro. GM produces those cars at its Lansing Grand River assembly plant. Across town, Stellantis Chief Design Officer Ralph Gilles said in an interview with “Car Design News” earlier this year that he’s “fatigued” with SUVs and that, for him, “the SUV craze has kind of come and gone.” “A lot of people are asking for sedans. Young designers want hatchbacks like the GTI of the 1980s. They want a personal car that’s fun to drive and easy to park,” Gilles said. “It’s making us rethink different form factors.” Stellantis sells two sedans in the United States: the Dodge Charger and the Alfa Romeo Giulia. On May 14, Honda revealed a next-generation Honda Hybrid Sedan Prototype as one of 15 new hybrid models the company plans for introduction globally, primarily in North America, by 2030. Nissan’s luxury brand Infiniti has plans to reenter the sedan market next year with a high-powered sports sedan called the Q50S, according to Car and Driver. In November, Mitsubishi told dealers of a “strategic shift” in its planned lineup that could involve a return to sedans, according to Automotive News. The value proposition of a sedan Edmunds Director of Insights Ivan Drury said despite the prevailing market shift toward SUVs, compact and midsize sedans still hold a presence in the market. In the first quarter, sedans accounted for 14% of mainstream purchases, or about one in seven vehicles. The appeal of sedans grows as affordability concerns rise, Drury said. In the first quarter, a compact car cost a buyer on average about $10,000 less than a compact SUV. Midsize sedans offer even greater relative value with about a $17,000 average price difference compared with a midsize SUV. “It is evident that the added utility of an SUV carries a substantial cost, which may be difficult to justify if the vehicle’s full capabilities are not utilized,” Drury said. Brauer agreed, noting that while many consumers might like sitting up higher, some added room and the ability to go off-road on occasion, all amenities of an SUV, most don’t use all those features enough to justify the cost difference. “Sedans cost less up front, they are lower cost to insure, they get better fuel efficiency, they typically handle better around corners and they are easier to park because they are smaller and often easier to see out of, too,” Brauer said.The value proposition to sedans also influences buyer behavior regarding trade-ins, Drury added. “Because trade-in equity often serves as a significant down payment for more expensive vehicles, sedans attract a higher percentage of buyers without a trade-in,” Drury said. “Only 36.5% of compact and midsize sedan sales involve one, compared to 49.7% for their SUV counterparts.” The buyers who do trade in a vehicle to purchase a compact sedan tend to trade some of the oldest cars in the market, Drury said. The average trade-in for a compact sedan was 8 years old, nearly two years older than the industry average of 6.2 years. Driveway diversity The auto experts agree it is highly unlikely that sedans will ever reclaim even half of the market share they gave up to SUVs. According to Cox Automotive data, in 2015 the sale of cars accounted for 39.3% of all auto sales. Last year, they comprised 17%. The sales of SUVs in 2015 made up 40% of all vehicle sales. In 2025, SUV sales comprised 60% of the market. But, Drury noted, it is “a strategic mistake” for an automaker to exclude sedans from their future lineup. “This body style remains vital because its accessible price point resonates with specific consumer segments, including first-time buyers without trade-ins and those who have delayed their return to the market significantly longer than average,” Drury said. “Modern sedans have also evolved considerably. Many now offer all-wheel drive, maintain superior fuel efficiency compared to equivalent SUVs, and are increasingly featured in high-performance, sporty trims.” Then there is the generational shift that automakers have to figure out, Cars.com’s Bragman said. “American automotive tastes almost always shift when generations do. People who grew up as kids in station wagons didn’t want to drive what their parents did, so they bought minivans instead,” Bragman told the Detroit Free Press. “Their kids didn’t want to drive what their parents did, so they bought SUVs instead of minivans when they started families.” Sedans are considered family cars too, Bragman said, so a shift back toward more reasonably sized and priced sedan would be in keeping with younger folks not wanting to drive their parents’ SUVs. In short, expect to see more diversity in the driveways of the future, iSeeCars’ Brauer said. “Instead of seeing two SUVs parked in the driveway, we’ll get to where there’s an SUV in the household, but there’s a sedan there, too,” Brauer said.   Jamie L. LaReau is the senior autos writer for USA TODAY Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at [email protected]. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Auto industry insiders say the sedan is poised for a comeback Reporting by Jamie L. LaReau, Detroit Free Press / Detroit Free Press USA TODAY Network via Reuters Connect ...read more read less
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