In recent years, SUVs have dominated the global automobile market, defying predictions that smaller, eco-friendly electric cars would become the future of transportation. The shift towards SUVs continues despite concerns over climate change and rising fuel costs.
According to GlobalData, SUVs accounted for 54% of all car sales in 2024, increasing from previous years. While some new SUVs are electric, most still rely on fossil fuels, with 95% of those on the road running on petrol or diesel, according to the International Energy Agency (IEA).
Automakers claim they are transitioning to electric SUV models, but environmental groups argue that their larger size leads to increased emissions and resource consumption. Experts say the demand for electric SUVs means bigger batteries, which require more critical minerals, further straining the environment.
Despite expectations that compact electric cars would gain popularity, sales in major markets like Japan and Germany have declined, and growth has slowed in India. In contrast, SUV sales have surged. In 2018, Europe saw 3.27 million small hatchback sales, which dropped to 2.13 million in 2024, while smaller SUVs grew from 1.5 million to nearly 2.5 million in the same period.
China leads the global SUV market with 11.6 million sales in 2024, followed by the US, India, and Germany. Experts say improving purchasing power in emerging economies contributes to this trend. Additionally, SUV manufacturers benefit from high-profit margins, making them an attractive business choice.
Marketing has also played a crucial role in SUV popularity. Many consumers prefer SUVs for their spacious interiors, higher ground clearance, and commanding road presence. However, critics argue that aggressive marketing campaigns have influenced consumer demand more than necessity.
The environmental impact of SUVs is significant. The IEA reports that from 2022 to 2023, global oil consumption by SUVs increased by 600,000 barrels per day, making them one of the largest contributors to rising global emissions. If SUVs were a country, their total CO2 emissions would rank fifth in the world, surpassing Japan.
Compared to medium-sized petrol or diesel cars, SUVs consume 20% more fuel due to their additional weight, averaging 300 kg more. The transportation sector accounts for over 12% of global carbon emissions, making it a critical area for decarbonization.
Industry representatives argue that not all SUVs contribute to emissions growth. They claim that two in five newly launched SUV models are electric, with extended battery ranges to address concerns about charging access. Since 2000, the CO2 emissions of new SUVs have reportedly halved in certain markets.
While the number of electric SUVs is growing, they still make up a small fraction of total SUV sales. In 2023, only 20% of SUVs sold were fully electric, up from just 2% in 2018. Hybrid models also face scrutiny, as studies show that plug-in hybrid SUVs operate in electric mode only about 30% of the time.
Experts warn that the continued shift toward larger vehicles is slowing progress in reducing transportation emissions. The IEA states that the rise of SUVs has negated energy efficiency improvements in other areas of the car market. Similarly, the UK Parliament’s 2024 climate change report highlights SUVs as a major barrier to achieving decarbonization goals.
As SUVs continue to dominate global car sales, the challenge remains: can the automobile industry balance consumer demand with environmental responsibility?
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