Hyundai, Kia, Renault gains boost compact SUV segment

Strong sales of newcomer models such as the Cupra Formentor and Renault Arkana helped make volume compact SUVs Europe’s second-largest segment, despite a collapse in registrations for the segment’s former leader, the Volkswagen Tiguan.

Compact SUVs trailed only small SUVs (784,307 to 678,281) after the first five months as volume for the former dipped just 3.7 percent during the period in an overall market that fell 13 percent, according to figures from Dataforce.

The relative stability amid a period of market turmoil meant that compact SUVs overtook small cars, traditionally Europe’s most popular segment, after they suffered a much steeper decline of 21 percent during the period.

Hyundai Motor Group owned the top row of the segment with the Hyundai Tucson at No. 1 with 62,896 sales and the new Kia Sportage taking second with 54,620 (see table, below).

The VW Tiguan, the segment’s longtime front runner, slumped to eighth place after sales fell 41 percent. Parent VW Group has been prioritizing premium models and electric cars amid supply chain shortages, but the sharp decline in demand for the Tiguan puzzled industry watchers.

“The Tiguan is currently showing one of the worst performances in VW’s portfolio, so it cannot be explained just by the supply issues of the brand,” Benjamin Kibies, senior automotive analyst at Dataforce, said. “As a compact SUV, it should normally have a higher margin and thus priority over the Golf or the brand’s smaller SUVs.”

The Tiguan wasn’t the only traditionally popular model to suffer in the segment. Sales of Peugeot 3008 were down 19 percent, dropping it to No. 3 from No. 2 compared with the same period last year.

Other models fell out of the top 10, such as the Opel/Vauxhall Grandland, which dropped seven slots to No. 17 because of a 56 percent decrease in sales, and the Skoda Karoq, which slipped to No. 11 from eighth place during the first five months of 2021 (see table, below).

The Seat Ateca was down 35 percent and the Citroen C5 Aircross lost 45 percent but the models kept their No. 13 and No. 15 ranking, respectively.

Joining the top 10 at No. 9 overall was the Formentor from VW Group subsidiary Cupra, which increased sales of the compact SUV 96 percent to 36,708. Meanwhile Renault’s new coupe-styled Arkana entered the ranking at No. 10 with sales of 32,770.

The brands that recorded sales gains during the period did so with help from electrified models. The plug-in hybrid version of the No. 4-ranked Ford Kuga was Europe’s best-selling model with the powertrain through May, beating the plug-in hybrid version of the Peugeot 3008 in second.

Plug-in hybrids accounted for almost half of all Jeep Compass sales.

Meanwhile, Mitsubishi is making a comeback in a limited number of European markets with sales of the plug-in hybrid Eclipse Cross, which was the No. 4-selling model with the powertrain in the segment (see table below).

Also building market share in the segment with plug-in hybrids were Chinese brands MG with the HS and Lynk & CO with the 01. Overall, plug-in hybrid sales rose 48 percent to 116,969 in the five month period, narrowly beating diesels for the first time and taking a 17 percent share, according to Dataforce.

Hybrids also did well, with sales up 29 percent to 140,821 to take a 21 percent share.

Traditional hybrid leader Toyota took the first two places with the C-HR and the RAV4. The Hyundai Tucson was third.

The highest placed hybrid newcomer was the Arkana in fourth with sales of 18,170, giving the drivetrain 55 percent of the models total sales for the period.

Ford’s hybrid derivative also made an impact on Kuga sales, accounting for 20 percent of the total for the model in the period and overtaking its diesel offering.

Nissan is hoping its new e-Power hybrid system, due soon in the Qashqai, will also boost sales of a model that has traditionally been a big seller in the segment. Nissan expects the e-Power drivetrain to account for 40 percent of the Qashqai’s sales despite the higher price of the solution compared with models that have mild hybrid technology.

Full-electric sales accounted for just 0.8 percent of the segment total, partly because automakers have so far concentrated their electric efforts on the more globally appealing midsize SUV segment with models such as the VW ID4.

The electric leader in the segment over the period was the newly launched MG Marvel R, with sales of 2,515.

The low number is partly because of blurred segmentation. The need to focus more on aerodynamics has led to the development of electric compact models that borrow some of the visual design cues from SUVs but occupy the hatchback segment. A good example is the new Citroen e-C4 and Renault Megane E-Tech, both of which ride slightly lower than SUVs.

Whether that trend continues will determine the future of compact SUVs. If it does, then 2022 could mark the peak of sales for the segment.