Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Meet the 2021 winners
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Segment analysis
February 04, 2021 12:00 AM

EVs, surging SUVs to hit Europe's biggest segment

Nick Gibbs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Renault had two cars in the top 10 ranking of Europe's best-selling small cars last year. The Clio was No. 1 while the Zoe (shown) entered the top 10 for the first time because of a 118 percent sales increase.

    The small-car sector experienced radical changes in 2020 as customers shifted toward electrified models such as the Renault Zoe and Toyota Yaris and away from more traditional offerings from Ford and Volkswagen.

    Small cars remained Europe’s most popular body type through the market turmoil of 2020, increasing their share by one percentage point to 16 percent, according to data from JATO Dynamics.

     

    The leaders
    Europe's top-selling small cars
      2020 % change (2019)
    1. Renault Clio 236,662 -17
    2. Peugeot 208 198,427 -11
    3. Toyota Yaris 178,228 -16
    4. VW Polo 169,729 -34
    5. Dacia Sandero 167,306 -25
    6. Ford Fiesta 154,772 -32
    7. Opel/Vauxhall Corsa 151,048 -10
    8. Citroen C3 148,299 -30
    9. Renault Zoe 99,261 118
    10. Skoda Fabia 93,055 -38

    Source: JATO Dynamics

    However, the sector is forecast to lose its crown to compact SUVs this year as customer preferences change and automakers focus on more profitable model types in a bid to make the expensive shift to electrification less painful.

    "Moving toward bigger cars seems to be a necessary strategy to increase profitability, though, for some, this will come at the cost of reduced volume and market share," LMC Automotive senior analyst Sammy Chan said.

    LMC predicts small car sales will return to their 2019 level by 2024 after suffering a 22 percent drop last year but will lose sales after that.

    LMC forecasts that after outselling small cars this year, compact SUVs will continue to lead the European market in the midterm.

    Renault led the segment in 2020 with the Clio as it did in 2019, but saw its electric Zoe reach the top 10 for the first time with sales up 118 percent to almost 100,000, JATO figures show.

    However Renault wants to shift its focus toward profitable compact cars.

    "Over two-thirds of our sales are made in the B-segment [small] when the C-segment [compact] profit is always three times more and it brings an average of 30 percent additional operational margin per car," Renault CEO Luca de Meo said during his presentation of the automaker’s turnaround plan last month.

    The only small cars Renault will launch between now and 2025 will be electric, de Meo said. This will include a revival of the Renault 5.

    He did not say whether a replacement for the Clio, which was launched in 2019, falls within that time frame.

    Difficult position

    Renault finds itself in the same difficult position as other volume automakers when it comes to small cars.

    The cars' size and price perfectly fit the lifestyles of many Europe buyers, but fierce competition over the years has raised standards to the point that those buyers now expect the technology and quality levels that are close to what is available in premium vehicles.

    Add the increased cost automakers face to meet tougher safety and emissions regulations and margins on small cars have become razor thin.

    Some automakers are willing to accept fewer sales if buyers chose higher margin versions. "We plan to do a bit less volume [in 2021]," Hyundai Europe product and pricing chief Raf Van Nuffel said when launching the new-generation i20 small car in November.

    Hyundai instead will "really focus on the quality of sales," he said.

    Hyundai's plan mirrors that of Ford, which redesigned the current Fiesta launched in 2017 to increase the popularity of the higher-price, higher-spec variants. At the same time it dropped the lowest-spec Fiesta versions and warned of lower overall sales.

    The Fiesta is traditionally one of Europe's top three small cars, but last year it dropped to sixth from third in the ranking, with sales down 32 percent, a decline that was worse than overall market's drop of 24 percent.

    The Fiesta is traditionally one of Europe’s top three small cars, but last year it dropped to sixth from third in the 2019 ranking, with sales down 32 percent.

    The decline of the VW Polo (-34 percent) also outpaced the market's dip, pushing it to fourth in the ranking from No. 2 in 2019.

    The current Polo, also launched in 2017, is one of the few models in the top 10 that lacks an electrified variant, which might have hurt demand given that electrified models (mild, full and plug-in hybrids as well as full-electric vehicles) accounted for a quarter of all sales in the segment, according to JATO's 11-month data for 2020.

    SEGMENT ANALYSIS NEWSLETTER: Sign up for our monthly in-depth look at a segment of the car market, including sales and market share data, delivered to your inbox.
    Hybrid benefits

    The segment's biggest winner after the Zoe was the Toyota Yaris, which rose to No. 3 last year from eighth place in 2019 because of strong sales of the new car's hybrid version. Demand for the fourth-generation Yaris helped Toyota break its own sales record for a single model in September and November, when the automaker sold 33,000 units of the Yaris, making it Europe's No. 2- selling car for that month.

    Yaris sales "dramatically swung to hybrid," Toyota's head sales and marketing Matt Harrison said in November. "We are about 80 percent [hybrid] on the new Yaris and we were around 50 to 55 percent on the previous generation, so it's a big increase," he said.

    Toyota's figures show that the third- and fourth-generation Yaris hybrid accounted for 56 percent of the model line's total European sales in 2020.

    Renault is the only other model offering full-hybrid technology on a small car, but delays in the rollout of its e-Tech Clio meant the version accounted for only 3.6 percent of sales by November, according to JATO data.

    Cheaper mild-hybrid technology is becoming more popular in the sector. Mild hybrids accounted for almost four out of every five Suzuki Swifts sold through November and nearly half all Mazda2s in same period. Hyundai has rolled out the tech on its new i20, as has Kia for the Rio.

    Toyota's figures show that the third- and fourth-generation Yaris hybrid accounted for 56 percent of the model line's total European sales in 2020.

    Diesels decline

    Ford, meanwhile, switched to mild-hybrid technology in place of diesel, with diesel production ending in September. Ford has offered diesel versions of the Fiesta since 1984, but popularity of the fuel sank below 10 percent for the sector last year, JATO data shows.

    Only the French still sell diesel small cars in any quantity, with the fuel accounting for 23 percent of Clio sales, 17 percent of Peugeot 208 sales and 14 percent of Citroen C3 sales through November last year

    Diesels still outsold full-electric small cars through 11 months, but only by a small margin. Diesel had an 9.3 percent share with EVs at 7.2 percent mainly because of strong sales of the Zoe.

    Other EVs that made a notable contribution last year where the e-208, which accounted for 16 percent of the small Peugeot's sales, and the e-Corsa, which accounted for 8.1 percent of the sales for Opel/Vauxhall's best-seller.

    The focus for manufacturers going forward will be how cut costs and electrify in an affordable manner.
    Mazda said in December it would sell a version of the European-built Toyota Yaris, which could replace the Mazda2.

    Nissan, meanwhile, said that alliance partner Renault would not just build its next Micra, as it does now, but also design it.
     
    Dacia has said it will continue to offer its new Sandero small car at budget prices, but added that it will move the SUV-inspired Sandero Stepway further upmarket in a bid to raise prices.

    The question is whether any automakers will abandon the sector altogether in their chase for better margins.

    LMC does not expect this to happen, but it believes the rising popularity of the small SUV segment could cause automakers to restyle their future small cars, making them taller to capture the higher prices those variants currently command.

    LMC forecasts Ford will drop the Fiesta in 2025 and replace it with a small SUV that will sit alongside it's popular Puma small crossover. LMC's Chan said: "Depending on the continued trajectory of small SUVs compared with their car equivalents, other manufacturers could follow suit."

    The VW Polo is one of the few models in the small segment's top 10 that lacks an electrified variant. Polo sales fell 34 percent last year.

    RECOMMENDED FOR YOU
    Ford internet-linked cars get sales ban in Germany in patent dispute
    Recommended for You
    Ford badge
    Ford internet-linked cars get sales ban in Germany in patent dispute
    Mercedes CLA Shooting Brake 2022
    Mercedes to debut EV-focused MMA platform for 'entry luxury' models in 2024
    Lancia Ypsilon 2021
    Lancia bets on online sales in European expansion
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
        • Meet the 2021 winners
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us