The SUV market is not a zero-sum game, at least not now, as the first signs suggest that the Ford Bronco did not steal consumers from the Jeep. Instead, it seems to be expanding its customer base for SUVs.
A new study by S&P Global Mobility shows that sales of the Jeep Wrangler have not declined as Ford Bronco sales have risen in the past nine months. Although sales of the former have risen to six percent of the off-road segment (as determined by S&P), the latter’s share of the segment remains stable at seven to nine percent.
Although the Bronco is still new, it shows that there is room for both SUVs in this segment. This can be relied upon for a Jeep that has not been a direct competitor to the Wrangler for many years.
Also read: Thousands of Ford Bronco orders still have to be delivered and consumers are upset
Chuck Anderson, general manager of the Ford dealer in Missouri, said Car news he doesn’t think any of Bronco’s buyers traded in the Jeep Wrangler.
“I don’t think it will really take away the Jeep market,” Anderson said. “I think it will allow people in this segment of the car who have never been able to buy what they want.”
So far, at least, it seems that the balance has been found. The question now is to what extent can the segment expand?
“It’s interesting if someone else decides to join,” said Stephanie Brinley, an analyst at S&P Global Mobility. “We’re not necessarily saying we have the potential to grow in this space, but the addition of the Bronco has enlarged the pie.”
Volkswagen was interested to see how big this pie would be. The carmaker is interested in producing SUVs under the Scout brand. However, it will be interesting to see if the market can overcome all three models or if history repeats itself.