European Demand for Small Minivans Fades

Sales of compact minivans in Europe are likely to shrink below 500,000 units in 2020 from 820,300 in 2016, says Automotive News Europe, citing LMC Automotive.

The reason for the decline is the same trend affecting car sales: a consumer swing to SUVs and crossover vehicles, adds JATO Dynamics. It says the decline last year was caused entirely by slumping demand for mainstream compact minivans. But the market research firm notes that sales of premium models also began to sag this year.

Volkswagen AG tells ANE it sees continuing demand for its segment-leading Touran small minivan, whose deliveries last year surged 52% to 112,900 units. But the online newspaper notes that several other carmakers—notably Fiat, Honda, Mazda, SEAT and Skoda—have abandoned the sector.

Manufacturers that continue to compete are modifying the look of their small minivans to give them a more styling pizzazz to go along with their practicality. ANE points to Renault SA, which took that tack with its Espace large minivan in 2015 and the revamped Scenic small minivan (pictured) introduced last year. Even so, Scenic sales plunged 27% in 2016, according to JATO.

Europe’s largest market for compact minivans is Germany, where volume declined 3% to 237,800 units last year. Sales for such models fell 9% to 172,500 units in France and 10% to 87,400 vehicles in the U.K.