Europe’s Demand Soars for Small SUVs

Sales of small SUV/crossover vehicles in Europe jumped 17% to 1.4 million units last year and are likely to surge more than 40% to more than 2 million units in 2018, according to LMC Automotive and JATO Dynamics.

The region’s largest markets for such the pint-sized vehicles in declining order are France, Italy, the U.K. and Germany, says Automotive News Europe.

JATO tells the online magazine that manufacturers are rushing to add highly profitable, premium-priced models in the segment because there is little competition from traditional luxury-vehicle makers. The market research firm says prices on such models are about 25% higher than subcompact sedans.

The Renault-Nissan alliance supplied nearly one-third of Europe’s subcompact SUVs last year in the form of top-selling Renault Captur (pictured) and the Nissan Juke and Dacia Duster. But ANE notes other carmakers will be adding new models in the segment later this year.

In August Volkswagen Group will expand its lineup of tiny SUVs beyond the Skoda Yeti with the SEAT Arona and VW T-Roc and T-Cross models. Hyundai and its Kia affiliate also plan to unveil new subcompact SUVs later this year.

Opel is adding its Crossland X, a smaller SUV than its Mokka X, this year. Similarly, PSA Group’s Citroen brand will debut a production version of its C-Aircross concept, a smaller crossover than the brand’s current C-Cactus subcompact.

Only 14% of small SUVs sold in Europe last year were equipped with four-wheel drive, JATO says. It points out that such models are more popular in southern Europe than in the snowy north.