In 2023, SUVs dominated the European automotive market, constituting 51 percent of new car sales and experiencing a significant 19 percent surge from the previous year. This underscores the well-known popularity of SUVs, a trend not limited to the United States where they surpass even pickup trucks in sales. However, the noteworthy revelation for Europe in 2023 was that SUVs not only secured the top spot in popularity but also surpassed the combined sales of all other vehicle categories.
Anticipation of this trend had emerged the previous year when preliminary data hinted at the impending dominance of SUVs, but the confirmation came through a comprehensive analysis by Automotive News Europe. The data revealed that 51 percent of new vehicle sales were attributed to SUVs and crossovers, leaving sedans, trucks, estates, and hatchbacks to share the remaining market share. This marked a substantial 19 percent year-over-year growth for the segment, led by the Tesla Model Y, which claimed the title of the best-selling vehicle globally in 2023. Notably, the Model Y alone experienced an impressive 85 percent increase in sales within the region.
While the European streets may not be inundated with large SUVs, a shift has occurred from small hatchbacks to compact SUVs, particularly in the small and compact people movers category, which accounted for 4.1 million sales. Premium SUVs demonstrated the most significant year-over-year increase, soaring by 31 percent to achieve 843,939 sales. This aligns with the positive trends observed in luxury brands over the preceding year.