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More Shrinkage Ahead of Europe’s Luxury Small-Car Market

European demand for small luxury hatchbacks, sedans and coupes peaked at 1 million units in 2016 but will fall to about 900,000 units in 2018, says Automotive News Europe.
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European demand for small luxury hatchbacks, sedans and coupes peaked at 1 million units in 2016 but will fall to about 900,000 units in 2018, says Automotive News Europe.

ANE cites data from LMC Automotive that blames the decline in part to aging products, especially BMW’s 1 Series and Audi’s A3 cars. But both models will be updated next year. Similarly, Daimler will debut roomier and more luxurious versions of its A Class minicars this summer.

LMC says the new products should revive the sector, pushing sales above 1 million units again by 2020. But the company tells ANE that further growth is unlikely as consumers turn to compact SUV/crossovers, such as the BMW X2 and Jaguar E-Pace.

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