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
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • 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. Sales by Segment
October 15, 2019 11:33 AM

Wagons forecast to struggle but still survive on strong German, Swedish, Czech demand

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

    The Octavia Combi compact is Europe’s No. 1-selling wagon. It is so popular that Skoda built almost twice as many wagons as it did hatchback versions of the car in Europe last year.

    The station wagon -- a staple on European roads since the 1950s -- is facing a steady decline as automakers abandon the segment in favor of vehicles with more global appeal such as SUVs and crossovers.

    Wagons were previously popular, particularly with growing families, because they offered more luggage room than sedans. Today, however, that need for space is being satisfied by SUVs and crossovers, which last year captured 34 percent of the European market compared with 11 percent for wagons, according to sales data from JATO Dynamics.

    The market will shrink to 1.5 million by 2025 from 1.7 million this year and almost 2 million in 2016, analyst firm LMC Automotive predicts. Sales were down 10 percent to 863,626 in the first half.

    Automakers with long histories of building wagons such as Citroen, Nissan, Alfa Romeo and Honda no longer offer them in Europe. Toyota is down to one wagon, while Renault, Peugeot and Ford only have two apiece. Ford could drop to one if it decides to ax its Mondeo midsize wagon. Renault had three but has said it will not build a wagon variant of its new Clio small car.

    "To be honest, we thought about replacing the Clio station wagon, but in the end we decided not to do so," said Olivier Brosse, who is Renault program director for small cars.

    He said many Clio wagon customers would opt for the new Captur small SUV, which has 81 liters more trunk space than the previous generation.

    Big in Europe

    A big problem for wagons is that they are widespread in Europe but nearly non-existent elsewhere. While the body style was once popular in the U.S., wagons have been all but killed there, first by the rise of the minivan and then surging demand for SUVs and pickups. Earlier this year Volkswagen said it would pull its last two wagons from the U.S. by year-end.

    Europe accounted for 72 percent of global wagon sales in 2017, JATO data shows. "Station wagons are only popular in Europe, and this could be a good reason to stop producing them in these challenging times," JATO global analyst Felipe Munoz said.

    Even some European markets are turning their backs on wagons. In Italy, for example, the body style accounted for 15 percent of sales in 1999, but in the first half of this year they accounted for 5 percent.
    In the UK, wagons also accounted for 5 percent of first-half sales while in France they stood at just 4 percent.

    'Diehard' buyers

    What is likely to save the wagon from extinction is continued strong demand from northern and eastern European countries.

    Wagons accounted for 17 percent of sales in Germany, Europe's biggest market, in the first six months while in Sweden they had a 31 percent share. "Germany is a big wagon market and it's not going away," Pete Kelly, managing director of LMC Automotive, said.

    Customers there and in other strong wagon markets such as the Netherlands, Belgium, Poland and the Czech Republic remain committed to the body style.

    "Wagons aren't on the way out totally because there's a diehard group of buyers who identify with them completely," Kelly said. For them the wagons are superior to SUVs for two main reasons -- their long, sweeping designs and larger rear loading areas. "You might see one or two drop out, but for manufacturers heavily dependent on Europe and Germany, wagons are best," he said.

    Skoda's strength in Germany and its Czech home market were key to the Octavia Combi compact finishing the first half as Europe's No. 1-selling wagon by a wide margin. It is so popular that Skoda built almost twice as many wagons compared with the Octavia hatchback variant in Europe last year, according to company figures.

    The Octavia Combi captured almost a quarter of the compact wagon segment, which was Europe's biggest in terms of sales. Octavia wagon sales dipped just 2 percent in the first half despite a new model arriving early next year.
    The second biggest wagon segment is the midsize class, which was topped by the Volkswagen Passat.

    Premium commitment

    Premium automakers remain committed to wagons after a relatively late conversion to the segment in the 1980s.

    Of the three German premium brands, Audi was the first-half sales leader with the A4 Avant at No. 2 in the midsize wagon category and the A6 Avant finishing at No. 1 in the large segment ahead of BMW and Mercedes-Benz.

    The wagon might have been knocked by the trend for SUVs but it has also capitalized on it too in the form of raised versions that borrow some of the same rugged off-roading appeal.

    The Cross Country version of Volvo's V60 accounted for a third of the midsize wagon's global sales last year, the company said. Volvo expects the recently launched new V60 Cross Country to capture a similar share or higher.

    Automakers have future-proofed the wagon to some extent with recent additions of plug-in hybrid drivetrains. The latest is the Skoda Superb, which adds the IV plug-in hybrid variant to its lineup starting in early 2020 to rival the VW Passat GTE and Peugeot 508 SW PHEV in the midsize wagon segment.

    Among premium automakers, the plug-in hybrid wagon variants include the Volvo V60 and V90 as well as the Mercedes C350e and E300de. So far, no BMW or Audi wagons have been offered with the technology, but they are expected.

    The wagon could come back into fashion if SUVs are forced to drop their height to make them more aerodynamic as the pressure rises to electrify powertrains. Until then, the wagon market will continue to shrink into its northern European heartland.

    RECOMMENDED FOR YOU
    SUVs blaze past small hatchbacks in major first-half segment shake-up
    Recommended for You
    VW T-Roc during testing 2022
    SUVs blaze past small hatchbacks in major first-half segment shake-up
    Tesla Model Y
    Tesla overtakes Mercedes in key premium midsize SUV segment
    Hyundai Tucson 2022
    Hyundai, Kia, Renault gains boost compact SUV segment
    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 © 1996-2023. 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
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • 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