Premium cars rule in fading European market

European sales fell by 8 percent to 12.5 million units last year, but that didn't diminish buyers' appetite for premium compact vehicles.

Sales of premium medium SUVs grew 24 percent to 407,512 because of strong demand for the Audi Q3 and Range Rover Evoque, according to data from JATO Dynamics.

Sales of volume automakers' medium SUVs also increased, rising 15 percent to 672,930 units helped by double-digit sales gains for the segment-leading Volkswagen Tiguan, as well as the Hyundai ix35 and Kia Sportage. (Click on the segment report PDF, right.)

Another major segment that had a significant sales gain was compact premium. The recent arrivals of new generations of the BMW 1 series, Audi A3, Mercedes-Benz B class and A class boosted the segment's sales 9 percent to 619,241 units.

EVs on the rise

Overall, Europe's fastest-growing segment was electric cars with a 64 percent increase to 17,790 last year. Leading the way was the Nissan Leaf, which accounted for 29 percent of the niche's total sales. It will take years before the electric car segment becomes a factor as it accounted for, with just 0.14 percent of total European volume last year.

Europe's No. 1 brand, Volkswagen, was top of five of the 14 volume segments tracked by Automotive News Europe.

Overall, Europe's fastest-growing segment was electric cars with a 64 percent increase to 17,790 last year. Leading the way was the Nissan Leaf, which accounted for 29 percent of the niche's total sales. It will take years before the electric car segment becomes a factor as it accounted for, with just 0.14 percent of total European volume last year.

Segment leaders

Europe's No. 1 brand, Volkswagen, was top of five of the 14 volume segments tracked by Automotive News Europe.

Ford and Opel/Vauxhall each led two segments. In the 10 premium segments that ANE monitors.

BMW and Mercedes each won three and Audi took two.

Renault's low-cost Dacia Duster continued its dominate the small SUV segment, while the Bentley Continental GT/GTC outsold the Ferrari 458 to finish 2012 was Europe's No. 1 exotic car.