01 Jul 2019

Europe's Thirst For SUVs Drives Market Growth In May

SUVs are the flavour of the year in Europe
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European buyers are very much in the mood for SUVs according to data released by automotive market research company JATO.

European buyers are very much in the mood for SUVs according to data released by automotive market research company JATO.

According to May’s monthly results, SUVs are behind the automotive sectors growth for the month, offsetting slumping sales in traditional segments.

“While demand for subcompact, compact, midsize and executive/luxury cars and MPVs fell during the month, demand for SUVs was up by 10 percent to 534,700 units,” said JATO.

According to the data, SUVs accounted for 37.2 percent of total registrations, with a market share 3.2 percent higher than the same time in 2018.

“Year-to-date figures show 2.56 million SUVs have been registered so far in 2019 in Europe—an increase of 8 percent.”

Overall, the market is stable however with booming SUV sales doing plenty of offsetting other poor results but not enough to get the market far above 0 percent growth year-on-year.

“In total, 1.44 million vehicles were registered—a 0.2 percent increase on May 2018,” said JATO.

Significantly, while the results are fairly flat, both April and May are an improvement on steady declines in the sector between  September 2018 and March 2019.

JATO’s global analyst Felipe Munoz said that a slew of new vehicle launches in May was propping up the market.

“Moving forward, there’s still a long way to go until we see real progress with EVs, which means SUVs will continue to be the best hope for carmakers selling cars in Europe,” he said.

The study credited strong sales in the small and compact SUV segment, with models such as the Volkswagen T-Roc, Volkswagen T-Cross, Hyundai Kona and the new Dacia Duster highlighted as strong performers along with the Volkswagen Tiguan, Peugeot 3008 and Nissan Qashqai.

“While consumers continue to lose interest in traditional hatchbacks, and carmakers remain reluctant to bring new additions to those segments, small and compact SUVs are the most desirable alternatives,” said Munoz.

“Although they are slightly more expensive, they feature cooler designs and offer more comfort and a high- seating position. Not to mention that the offer is continuously updated with the latest arrivals to the market.”

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