The shift to larger cars in Europe long predates the electrification push. Data compiled by T&E shows the spread between smaller and larger segments has not changed much in Europe, but within segments, hatchbacks and sedans have given way to larger SUVs. So, Picassos and Puntos are not replaced by RAM 1500s – instead, they turn into compact SUVs.
The average weight of a European car has increased by 100kg and the dimensions by 6% in the last 10 years.
SUV-isation is as much a feature of the combustion engine market as it is of electrics: while half of all battery electric cars sold this year are SUVs, diesel and petrol cars are just behind at 46%.
Car size is king when it comes to industry profits: SUVs, on average, sell for almost 60% more in Europe, according to Jato. And Ford’s
strategy to improve its profits and shift to SUVs is the reason for axing the Fiesta.
Auto bosses appear to be culling small cars in pursuit of profit. VW, Stellantis and BMW have all announced that they are moving towards selling fewer cars and focusing on more premium, high-end models.
This is showing up in the carmakers’ financials: while sales volumes are down since the pandemic, the profits of BMW, VW and Stellantis grew by 15-30% last year, with double-digit margins.
But exiting smaller car segments is not good news for the environment, drivers or the European industry.