Quote:
Originally Posted by esquire
Almost seems like there is a good business opportunity to manufacture and sell low-cost compact cars to the large segment of the population unwilling or unable to spend $75,000 on a Silverado. At some point Chinese manufacturers well-versed in small, cheap cars will start selling their product here...
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The reality of the modern car market is that those with only a budget for a new-build compact car are more likely to look at the used market to get a 3-5 year old larger vehicle.
Automakers stopped making small, cheap cars as nobody buys them. It's not like they aren't on the Canadian market - The Mitsubishi Mirage is still sold today for $14,400 brand new, and the Kia Rio starts at $19,900.
Mitsubishi sold just 911 Mirages in Canada in 2021. Kia sold 5,200 Rio's. Combined they represent 0.3% of the new vehicle market.
Comparatively, Ford sold 116,000 F-150s in 2021.
Even within the compact car market, the Civic, which is generally the most expensive model in the segment, sells the best, selling about 70,000 units a year before Honda ran into supply problems through the pandemic. Budget isn't generally a major concern for new car buyers.