SUVs Represent More Than Half of All Car Sales in Europe – What Does That Tell Us?

According to Automotive News, Dataforce discovered that SUVs accounted for 51% of all new vehicle sales in the first half of 2023 in the Old Continent. That's the first time this has happened. In the first half of 2022, 48% of new cars sold in Europe were SUVs. This year, their sales results increased by 23%. That's more than the general demand for new cars in Europe grew (17%). However, when you look more closely at the numbers Automotive News published, the SUV share in the European market was even higher.

The news service said that SUVs reached 3.37 million units in a total of 5.72 million in the first half of this year. Do the math, and you'll see that it's 56.25% – indeed, more than half of all sales, but also more than 51%. A table in the same story confirms the numbers, making them even more precise.

European customers bought 3,219,219 SUVs among the 5,723,139 new vehicles purchased in the first half of 2023. Dataforce divided them into five subsegments: small SUVs, compact SUVs, premium midsize SUVs, premium compact SUVs, and midsize/large SUVs, which appear in that volume sales order. Small SUVs sold an impressive 1,133,822 units – or 19.8% of all new cars sold in that period. Compact SUVs are close, with 999,568 vehicles.

Premium midsize SUVs are far behind, with 421,902 units. The Tesla Model Y fits in this subsegment. Although it probably made it relevant by selling 138,152 units (32.8% of all premium midsize SUVs), that's equivalent to only 4.3% of all SUV sales in Europe and 2.4% of all new cars sold in Europe in H1 2023. In a market with so many strong options, being the best seller may not mean that much.

All this information teaches some lessons about what makes people buy cars. Some of us are concerned about energy efficiency, but the average Joe is worried about fuel prices. The subsidies for fossil fuels may indirectly fund the oil industry (aka Big Oil), but their focus is to allow people to pay less for transportation and food. Or do you think goods transported by trucks will dodge getting more expensive with higher diesel or gasoline prices?

Small SUVs are what sell the most in Europe because they are roomier than small cars but still easy to park anywhere. Anyone familiar with the narrow European streets will also realize this may play a role in vehicle choice. Above all, small SUVs are more affordable, which is also a crucial factor. Europe is a wealthy region, but most of the people who live there cannot spend thousands of euros on a new car whenever they want.

SUVs have a larger frontal area, which makes them less aerodynamic. They are also heavier than regular cars, with bigger wheels and tires that cost a lot more. These vehicles will spend more on maintenance and fuel (or electricity) consumption than vehicles that do not need to be as tall. That's right the opposite of what electric cars are trying to be: more aerodynamic, lower, and more frugal. They could also be lighter without battery packs, but battery electric vehicle advocates think nothing beats cells because of how efficient they are in avoiding losses. If that were a concern for customers, nobody would buy SUVs.

That said, why do sales of these vehicles keep surging? Why are they now half of everything European buyers of new cars want? I have a hypothesis that I am still trying to prove: SUVs are just more convenient as we get older and taller. Let me elaborate on that.

Human beings are currently taller than ever before. According to Scientific America, the average height of people in industrialized countries has increased by 10 centimeters (3.9 inches) in the last 150 years. Life expectation is also higher than ever before. Due to modern life, we tend to have kids later, which makes it more demanding to put them in the cars. Entering an SUV is more straightforward than doing the same in other vehicles: the roof and the H-point are higher. Despite their disadvantages, SUVs and crossovers are more comfortable to live with.

SUV coupes and convertible SUVs are part of this popularity phenomenon. These taller cars must now differentiate themselves and offer different experiences without giving up on the high driving position. What happened now in Europe should repeat in all markets with more peculiar preferences, whether they like it or not: as most automaker's headquarters are in the US, Europe, or Asia, the foreign markets they serve should receive the same products their "native" customers like.