The arrival of the ID4 has helped VW become Europe’s top-selling EV brand as the model is already the No. 3-seller in the volume midsize SUV segment.
Electric models have dramatically revitalized the declining volume midsize SUV segment in Europe as automakers such as Ford, Volkswagen and Hyundai launched halo crossovers designed to have more global appeal than compact-sized equivalents preferred by European customers.
The segment saw sales grow by 41 percent to 303,233 through 10 months as full electric became the segment’s most popular powertrain, according to data from JATO Dynamics (see chart, below).
The segment leader, however, continued to be the conventionally powered Skoda Kodiaq, with 10-month sales of 49,596.
The Czech model, which was also No. 1 last year and in 2019, was just ahead of the 2018 segment leader, the Peugeot 5008, which recorded 46,320 sales.
Entering the top three in its first full year on the market was the full-electric VW ID4, with a volume of 41,754, putting it ahead of the related Skoda Enyaq iV, with 32,531 sales.
Those two VW Group models, which share the automaker's full-electric MEB architecture, were joined in the midsize segment’s top 10 by the Ford Mustang Mach-E and the Hyundai Ioniq 5 (see chart, below).
The midsize segment's leader through 10 months was the Skoda Kodiaq, which was also No. 1 last year and in 2019.
Meanwhile, two former members of the top 10, the Hyundai Santa Fe and Nissan X-Trail, finished in 11th and 12th place, respectively.
The reason automakers have targeted the midsize SUV segment for their halo electric models rather the more popular compact SUV segment was because they wanted to appeal to car buyers around the world, JATO Dynamics analyst Felipe Munoz said.
“This is one of the most global segments with appeal in all three big markets: USA, China, Europe,” he said. “So, it’s a key one for the automakers looking to save costs on development and localization.”
The electric newcomers are large enough to be categorized as midsize SUV without being too large to appeal to customers that usual prefer compacts.
A good example is the VW ID4, which is sold worldwide, while its sibling, the ID3 electric hatchback built on the same platform is only available in Europe.
At 4584mm long, the ID4 sits in between the biggest version of the VW Tiguan (4486 mm) compact SUV and the midsize Tiguan Allspace (4701mm).
The extra size compared with compact equivalents allows automakers to charge more and recoup some of the added cost from the battery. This combined with continued allure of the SUV shape will help push more companies to target the segment, LMC Automotive senior analyst Sammy Chan said.
“We forecast strong growth in this segment, given the desire for mainstream brands to sell larger, more profitable vehicles from their model range,” he said.
The midsize SUV segment is expected to grow more than 40% to 361,000 this year because of the addition of full-electric models such as the Ford Mustang Mach-E.
The segment will recover from its low of 256,789 in 2020 to grow to 361,000 this year and then increase annually to reach 885,000 by 2027, LMC predicts.
The growth will be driven by automakers that decide to discontinue midsize sedans and wagons in favor of midsize SUVs, LMC believes, and the debut of new models.
Newcomers will include variants of existing models, for example, the new VW ID5 coupe version of the ID4, as well as all-new models such as the Toyota bZ4x, which is even longer than the ID4 at 4690mm.
The Nissan Ariya is another global electric model due next year in Europe that will further increase choice in the segment.
The launch pace for electric versions is so frenetic that in just one year, electric versions have gone from a zero percent market share in the segment to its most popular powertrain, with a 35 percent share, according JATO Dynamics.
Diesel, which was the most popular in 2020, has now slipped to 32 percent from 57 percent, while gasoline now accounts for 22 percent.
Hybrids are gaining share as automakers with traditionally powered models in the segment switch over to electrified options. Both the Kia Sorento and Hyundai Santa Fe have been given plug-in hybrid options over the course of 2021. Meanwhile, Seat is rolling out a plug-in hybrid version of its Tarraco.
Those additions, however, haven’t offset the drop in sales of the Mitsubishi Outlander PHEV, which isn’t being replaced as the Japanese company exits key European markets.
The dramatic 56 percent reduction in sales for a model that was until recently Europe’s most popular plug-in hybrid meant that the plug-in hybrid share of the segment fell to 9 percent this year from 10 percent last year.
The Tiguan Allspace remains without a plug-in hybrid option, despite a version with the drivetrain being available in China. Also lacking plug-in hybrid options as yet are the Skoda Kodiaq and Peugeot 5008.
Customers are also being given more full-hybrid options in the segment as both Hyundai and Kia add the drivetrain to their respective models, giving hybrids a 2 percent share in the segment through 10 months.
That share is expected to increase with the arrival next summer of the Nissan X-Trail, which will be offered with the automaker’s e-Power hybrid drivetrain.
The X-Trail will also be available with seven seats and all-wheel drive.
While customers of electric midsize SUVs can in most cases get all-wheel drive as an option, seven-seat derivatives are still only available with combustion powertrains.
