Led by the VW T-Roc, the small SUV segment was Europe’s largest in the first six months, with total sales of 970,863.
Europe’s longtime car-sales leader, the small segment, has been knocked off the top spot by not one but two SUV categories in the first six months of the year.
However, so distorted is the market because of supply chain issues that the even industry leaders are struggling to work out underlying consumer trends.
“At the moment it’s very difficult to get a good feeling on what cars are hot or not,” Skoda CEO Klaus Zellmer told Automotive News Europe at a recent event held by the Volkswagen Group brand. “Demand for any car at the moment is much higher than production capacities.”
Europe’s biggest segment after six months was small SUVs, with sales of just under a million, figures from Dataforce show.
It finished ahead of the larger compact SUV segment, with 834,085.
Sales of small cars fell 22 percent over the period to fewer than 830,000, the figures show (see table, below).
The best-seller for the period, however, wasn’t a small SUV, but the Peugeot 208 followed by the Dacia Sandero, both small cars.
The small car segment’s poor sales for the period can be attributed to a slump in registrations for last year’s No. 2-selling small car, the Renault Clio, down 35 percent, and the Ford Fiesta, which saw sales halved. The Toyota Yaris also did badly, with sales down 31 percent.
Ford has struggled to sustain production of the Fiesta at its factory near Cologne, Germany, which has suffered stoppages this year on supply chain issues, leading the company to pause sales.
It’s possible that because of the limited supply of semiconductors Ford prioritized production of the higher-margin Puma small SUV, which starts at 27,400 euros in Germany, while the Fiesta starts at 18,100 euros.
Sales of the Puma did not suffer as much as the Fiesta in the first six months. Despite an 11 percent decline, the Puma still had recorded more than double the sales of the Fiesta.
This trend has been repeated across automakers.
“Amid a stretched supply chain, OEMs have focused on the more profitable models within their respective portfolios,” Tim Rokossa, head of research at Deutsche Bank, said in a note to investors.
Just as Puma sales climbed, so did those of Renault’s small SUV, the Captur, which overtook sales of the Clio in the same period. Meanwhile, Toyota’s newly launched Yaris Cross small SUV closed in on the Yaris with sales of 65,176, against 79,315.
The Dacia Sandero has consistently been one of Europe’s best-sellers this year, suggesting that many consumers in the volume car sector remain value driven.
The higher selling price of small SUVs compared with their similar-sized hatchback siblings helped the bottom line at many automakers.
However, in a period where automakers have also reduced discounts, pushing up prices amid wider inflation increases, it’s hard to believe consumers are falling out of love with small cars.
Indeed, the success of the Dacia Sandero, consistently one of Europe’s best-sellers this year, suggests that consumers in the volume car sector remain value driven.
In the compact SUV segment, the success of new models helped drive the pace of growth.
Sales of the new Kia Sportage rose 41 percent to take second in the segment behind the top-selling Hyundai Tucson, which was up 4.5 percent.
The new Cupra Formentor and Renault Arkana also helped lift the segment.
Automakers in recent months have typically prioritized new launches for available chips, helping the segments they subsequently join.
A continued rise of SUV sales could be thwarted in the second half, however, because of multiple factors.
"So far, we do not see the impact of the cost-of-living crisis on SUV demand," Dataforce senior analyst Benjamin Kibies said. "Models registered in the first half were ordered months ago by people using savings accumulated during lockdowns. When budgets tighten and supply shortages ease, this will strengthen the position of smaller cars again."
The Tesla Model Y played a big part in boosting the premium midsize SUV segment to No. 6 overall in Europe during the first half from ninth during the same period last year.
In the premium segments the success of the Tesla Model Y pushed the midsize SUV to the top of that category. In addition, the Model Y played a big part in boosting the premium midsize SUV segment to No. 6 from ninth during the same period last year.
Sales in the segment rose 18 percent to 293,020, according to Dataforce figures, overtaking premium compact SUVs (down 22 percent) and premium compacts (down 26 percent) percent.
Other models that gave the premium midsize SUV segment a boost were the Mercedes-Benz GLC, up 9 percent, and the Audi Q4 e-tron.The Q4 e-tron entered the segment’s top 10 with a 452 percent sales increase. Its arrival, combined with the Model Y’s success, pushed electric-only sales within the segment to 33 percent (see table, below).
The segment was one of two topped by an electric vehicle, along with luxury sedans, led by the Porsche Taycan.
In the premium midsize segment, the BMW 3 Series just held off the Tesla Model 3 to take the lead after sales of the EV fell 40 percent (likely cannibalized by the related Model Y).
While full-electric models have made a big impact in segments such as midsize and large SUVs (45 percent EV share) and premium midsize (31 percent EV share), the ratio of the electric sales in top three segments were significantly below the 11 percent overall share EVs had in the first half.
Only 5.2 percent of small SUVs were electric, topped by the Hyundai Kona, and just 0.7 percent of compact SUVs were battery-powered models.
That very low figure within compact SUVs is partly due to segmentation, with larger, globally oriented cars such as the VW ID4 falling into the midsize category. However, it does show volume automakers aren’t ready to take the plunge with EVs in what remains their prime selling sector in terms of price and consumer appeal.
EVs were slightly better represented within the small segment, with a 7.4 percent share, according to Dataforce, with the Peugeot e-208 leading the way.
Overall, gasoline remained the dominant powertrain, accounting for just under half of all sales, followed by diesel at 19 percent, EVs at 11 percent, hybrids at 8.8 percent and plug-in hybrids at 8.5 percent (see table, bottom).
Plug-in hybrids sales dropped by about 62,000 vehicles compared with the same period last year.
