BMW iX1 drives EV sales surge in crucial segment

The premium compact SUV segment is now Europe’s third largest for full-electric sales after strong demand for EVs led by the BMW iX1 boosted the entire segment.

Full-electric registrations in the segment grew by 44 percent in the first seven months, according to figures from market researcher Dataforce. The sales surge moved premium compact SUVs ahead of compact SUVs and minicars in terms of full-electric sales.

Midsize SUVs — led by the Tesla Model Y — took the top place for EV sales, followed by compacts.

Overall, premium compact SUV sales grew 11 percent to 456,814 through July, according to Dataforce, making it one of Europe’s fastest growing segments, as the overall market was up 3.9 percent through July. It remains the largest segment for premium vehicles.

The iX1 and its sister model, the BMW X1, were the biggest contributors to the growth with a combined 38 percent gain, adding 25,901 units through July (see table, below).

The Volvo XC40 and its full-electric sibling, the EX40, came in second with combined sales of 68,281, down 1.5 percent from the year before.

Electric share in the segment rose to a quarter, nearly double that for the overall European market share of 14 percent over the same period, according to Dataforce.

Electric is now the segment’s second most popular drivetrain after gasoline after it moved ahead of diesel (see table, below).

The segment’s solid EV growth mirrors that of wider electric premium sales, which rose 23 percent in the first half of the year, compared with a decline of 4.8 percent for volume EVs.

Plug-in hybrid sales in the segment fell 23 percent through July, mainly because PHEV versions of the XC40 and the Mini Countryman have been taken off the market.

The iX1 was the top-selling EV in the segment at 29,851, up 54 percent, followed by the Volvo EX40.

Newcomers also helped boost sales, including the BMW iX2, Smart #1, coupe-styled Smart #3 and the electric version of the new Mini Countryman, which is closely related to the iX1 and iX2.

The Mercedes EQA and EQB models were third and fourth among EVs in the segment, with strong growth of the latter — up 46 percent — another important factor in the EV growth of the sector (see table, below).

Mercedes will launch two new compact SUVs on its MMA (Mercedes-Benz Modular Architecture) underpinnings, which supports both hybrid and full-electric drivetrains.

The models will follow the launch of the CLA compact sedan on the platform next year, the brand has said.

Audi currently has no EV in the segment, with the bigger Q4 competing in the class above. Audi is reportedly working on an electric replacement for the Q2, although no date has been announced.

Audi, however, strongly competes in the sector with the combustion engine Q2 as well as the Q3 and Q3 Sportback, which had combined sales of almost 100,000 through July. The VW Group brand is expected to replace both Q3 models next year.

Affecting the segment’s sales performance next year will be the end of the Jaguar E-Pace, which will be discontinued in the last quarter of this year. The potential for temporary additional tariffs on China-built EVs to become permanent in November could also slow the growth of both Smart models, as well as hobbling the Zeekr X. The Geely subsidiary’s model is new to the segment in Europe.

Diesel sales grew within the segment by 5.3 percent in the first seven months, led by the BMW X1 with 21,962 sales. Earlier this year BMW widened the choice of diesel engines for the model. Volvo no longer offers a diesel version of the leading XC40.

Germany was the biggest market overall for premium compact SUVs in the first seven months at 86,222, followed by the U.K. at 77,561.

France was the biggest market for plug-in hybrid premium compact SUVs, followed by Belgium. Overall, the X1 led PHEV sales in the sector, followed by the GLA, Q3 Sportback and Range Rover Evoque.

Germany was the biggest market for full-electric premium compact SUVs, with sales rising 8.8 percent despite the country’s elimination of purchase grants for EVs last December. The U.K. was the second-biggest EV market in the segment over the seven-month period.

The full-hybrid drivetrain has failed to gain traction in the segment except for the Lexus UX, which suffered a sales decline of 31 percent through July. The drop in demand is likely due to cannibalization from the brand’s new full-hybrid LBX small SUV, which was Lexus’ top-seller in July.

The biggest fall in sales within the segment came from the Countryman, which was affected by the transition to the new, third-generation model that was first unveiled at the Munich auto show last autumn.

The second biggest sales decline in the segment came from the Alfa Romeo Tonale, which lost 3,129 sales through July, dropping it to No. 10 in the segment from No. 8 after seven months of 2023.