SUV Demand Slows Down

Mon 29th Jul 2019

The European trend for big chunky SUVs appears to have reached its peak after latest sales figures reveals that demand is slowing down.

Though sales of SUVs grew again in Europe, 556,400 sold in June, the rate of growth has slowed, with Mercedes-Benz, Volvo and Land Rover seeing a particular dip in sales of their premium models. Other SUVs to take a big hit last month were the Nissan Qashqai, Volkswagen Tiguan and the Peugeot 3008 experiencing significant drops in sales.

Diesel demand was again impacted, with a 21% drop in registrations, with electric vehicles on the upside with a 20 per cent rise.

The figures were released by Jato Dynamics, with the company’s global analyst Felipe Munoz particularly concerned about the performance of SUVs.

“The most worrying result from June was not the continuous diesel decline, but the slowdown in demand for SUVs,” he said.

“Although it was still the third highest month ever for sales in the segment (behind March 2018 and March 2019), there are two factors that explain the limited growth.

“The first is that the poor conditions of the wider market are finally impacting SUVs, which are usually more expensive than regular car types.

“The second, which is more concerning, is that SUV demand may be peaking after many years of growth. If the second explanation is true, then Europe could be losing its main driver of growth.”

It wasn’t bad news for all brands, Tesla had a stand-out month in June, Tesla continued their rise and have now tripled their sales in the first half of 2019, with thanks in part to the performance of the Model 3 saloon which is now Europe’s best-selling premium midsize sedan.