Demand is expected to increase significantly in the European market for SUVs, which grew substantially in 2012 and experienced a decrease in sales in 2013. The sale of premium SUVs specifically is poised to increase, as new models including the Mercedes-Benz GLA, Porsche Macan, Maserati Levante, Lamborghini Urus, as well as crossovers from Bentley and Jaguar, enter the growing small, premium SUV segment. Analysts expect the Mercedes GLA to be the best selling model in this sector in Europe. Automotive News notes that as the small premium SUV sub-niche gains prominence, one can expect large SUV sales in Europe to continue to decline.
This sub-niche of SUVs, also referred to as coup-styled SUVs, seem to be a natural preference for Europeans, who traditionally prefer rounder, smaller cars than Americans, who seem to like boxier and larger cars.
http://europe.autonews.com/article/20140514/ANE/140509802/premium-suvs-poised-for-sales-surge-after-disappointing-2013
Design definitely has a lot to do with consumer preferences. While Americans would rather drive a cheaper large car such as a pick up truck or Explorer, Europeans prefer sleek, smaller cars built for performance as well as fuel efficiency. We will never see a rise to prominence of big American manufacturers’ SUV’s, they are not the style European consumers look for and also are not fuel efficient enough for the high European gas prices. The niche for luxury crossovers and small SUV’s is very interesting. If luxury car brands can come out with fuel efficient cars that have a sleek smooth design, premium small SUV’s and crossovers will continue to do quite well and I imagine the market for such cars will continue to grow.
Small and stylish SUVs fit extremely well in cities. SUVs such as GLA have good fuel economy, while providing better views for drivers. SUVs generally provide high seating positions than rounder and smaller cars. Drivers, especially in China, like to distinguish themselves by having higher seats.
As the internal combustion engine is better developed to be more efficient the sales of SUVs in Europe will definitely continue to grow. With the high taxes on gas, people just don’t want big gas guzzling cars, but if the Europeans are offered a large SUV that gets 40 mpg… that would change the game.
I believe that Europe is poised for a return soon, and I think that the luxury auto industry will be able to enjoy this economic incline. I wrote a blog post about how further development and implementation of superchargers may allow OEM’s to produce cars with smaller engines but similar performance at a much higher fuel efficiency. I think this technology could help make luxury SUV’s gain market share in Europe where fuel prices are significantly higher than here in the states.