Sales of Subcompact Cars Stalls

Europe's demand for subcompact cars, which slumped to a 10-year low in 2014, will recover only slightly this year and isn't likely to grow significantly through the remainder of the decade, market researchers IHS Automotive tell Automotive News Europe.

Subcompacts such as the Ford Fiesta, Opel Corsa and Volkswagen Polo accounted for a record 28% of the European market in 2009. But the segment shrank to 22.5% (2.6 million units) last year.

IHS predicts the segment will climb to 23% of the market this year will expand to only 23.3% by 2020. A 54% jump in demand for subcompact SUV/crossover vehicles in 2014 accounts for much of the decline. IHS forecasts such models will capture 9% of the European market by 2020.