(qlmbusinessnews.com . Tues 18th Mar, 2025) London, UK —
“SUVs vs. Small Electric Cars: The New Reality in the Auto Industry”
Despite longstanding predictions that small electric vehicles would lead the charge towards a greener future, the market trend has dramatically shifted – and now, SUVs dominate global car sales. According to data from GlobalData, SUVs accounted for 54% of all vehicles sold in 2024, marking an increase of three percentage points from 2023 and five points since 2022. This surge spans petrol, diesel, hybrid, and electric models alike, even as the International Energy Agency (IEA) reports that a staggering 95% of SUVs still rely on fossil fuels.
Manufacturers argue that consumer demand is the driving force behind this trend. “Drivers are increasingly attracted to SUVs for their practicality, comfort, and enhanced driving position,” said Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT). Moreover, high profit margins have incentivised automakers to ramp up SUV production, with robust marketing campaigns further fuelling their popularity.
However, this shift presents significant environmental challenges. The IEA estimates that the global oil consumption attributable to SUVs has increased by 600,000 barrels per day between 2022 and 2023, making the global fleet of SUVs the world’s fifth largest emitter of CO2 – surpassing several major economies. Larger batteries needed for electric SUVs also intensify the demand for critical minerals, further straining resources.
While some industry representatives highlight progress in the decarbonisation of new dual-purpose vehicles – noting that over 20% of SUVs sold in 2023 were fully electric, up from a mere 2% in 2018 – experts warn that the overall trend towards heavier vehicles is undermining global efforts to reduce carbon emissions. In Europe, for instance, sales of small hatchbacks have plummeted compared to their numbers in 2018, while the demand for SUVs has surged dramatically.
As consumer preferences continue to evolve, the environmental impact of this back-gear towards larger, less efficient vehicles remains a contentious issue. The UK Parliament's climate change committee has echoed these concerns in its 2024 decarbonisation report, highlighting the setback in energy efficiency gains achieved elsewhere in the passenger car fleet.
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