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March 24, 2017 01:00 AM

SUV sales rise to 25% of European market

Luca Ciferri
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    The Nissan Qashqai (left) was Europe's top-selling crossover last year. The BMW X1 (right) was No. 1 among premium SUVs.

    European demand for SUVs and crossovers of any size and price showed no signs of slowing last year, which is why the models benefited disproportionately from the region's better-than-expected sales in 2016.

    Combined sales of models that included the Renault Captur, Nissan Qashqai, BMW X1 and even the aging Volvo XC60 increased 22 percent to nearly 3.8 million units, according to data from JATO Dynamics. That rise easily outpaced the overall market's 6.5 percent increase to 15 million.

    In addition, SUVs and crossovers accounted for a quarter of all European passenger vehicle sales last year, up from 21 percent in 2015.

    While torrid demand for SUVs and crossovers has put increased pressure on minivans for years, the downward trend for people movers could be reversing because of the arrival of new products. Last year the new Ford S-Max and Galaxy helped the large minivan segment to rebound by a third, boosting the sector's sales above 200,000. The arrival of the new Renault Scenic could have a similar effect on the compact minivan segment, which declined 6.6 percent last year. The segment should also benefit from continued strong demand for the new Volkswagen Touran, which was up by 52 percent to 112,850 units in 2016.

    SUVs and crossovers also continue to steal sales from hatchbacks, sedans and wagons.

    AUTOMOTIVE NEWS EUROPE MONTHLY MAGAZINE

    This story is from Automotive News Europe's latest monthly magazine, which is also available to read on our iPhone and iPad apps.You can download the new issue as well as past issues by clicking here.

    • The Small SUV and crossover segment grew 20 percent to 1.26 million units last year while traditional subcompacts, led by the Renault Clio and Volkswagen Polo hatchbacks, lost share.
    • Similarly, the compact SUV and crossover sector rose 21 percent to 1.45 million units while traditional alternatives, led by the VW Golf hatchback, lost share.
    • When it comes to big models, European consumers turned to premium large SUVs and crossovers, whose sales increased by 22 percent to 271,014 units last year. Conversely, large SUVs and crossovers from volume brands declined by 12 percent to 70,473, making it the only SUV segment to suffer a decline, JATO's figures show.

    The addition of an SUV or crossover to an automaker’s European portfolio can be a game-changer, Seat CEO Luca de Meo said, pointing to the Spanish automaker's launch of the Ateca compact SUV last year and its plans to join the small SUV sector with the Arona this year. "Previously Seat competed in half of the European market, with the Ateca and Arona it rises to three-quarters," he told Automotive News Europe.

    Overall winners

    Europe's fastest-growing segment last year was premium compact SUVs and crossovers, which had a 40 percent gain to 338,428 units. The new BMW X1 took a comfortable lead in the sector by doubling sales to 97,218.

    The subcompact segment remained Europe's largest with sales of 2.82 million units, a 2.4 percent increase that extended its lead over the region's second-largest segment, compacts.

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