The global automotive market has witnessed a significant shift towards Sport Utility Vehicles (SUVs), despite mounting concerns over their environmental impact. The International Energy Agency (IEA) has identified SUVs as one of the primary contributors to the climate crisis, citing their higher fuel consumption and emissions compared to smaller vehicles. In 2024, SUVs accounted for 54% of car sales worldwide, revealing a stark contrast to earlier predictions by the United Nations, which anticipated a pivot towards smaller and more eco-friendly vehicles due to the climate crisis and rising living costs.
The UK Parliament's climate change committee has raised alarms over the substantial resources consumed by SUVs given their size. Despite these warnings, sales figures indicate a continued preference for these larger vehicles. The Society of Motor Manufacturers and Traders (SMMT) has confirmed that SUV sales have not declined, while road transport remains a significant contributor to global carbon emissions, responsible for over 12%.
In recent years, there has been a notable increase in the production of electric SUVs. In 2023, over 20% of SUVs sold were fully electric, compared to just 2% in 2018. However, this shift has not been sufficient to counterbalance the overall environmental impact of SUV sales. The IEA has reported that SUVs burn 20% more fossil fuels than medium-sized cars and weigh up to 300 kg more on average, exacerbating their environmental footprint.
The oil consumption associated with SUVs has surged, increasing by 600,000 barrels per day globally between 2022 and 2023. This rise highlights the challenge of aligning consumer preferences with sustainability goals. In Europe, sales of standard-sized electric vehicles (EVs) have decreased in major markets such as Japan and Germany, further complicating efforts to reduce emissions. Meanwhile, small hatchbacks have seen a decline in popularity, with sales dropping from 3.27 million in 2018 to 2.13 million in 2024.
Industry experts have weighed in on the factors driving SUV sales. Mike Hawes noted that "manufacturers respond to consumer demand and, increasingly, drivers are attracted to dual purpose vehicles given their practicality, comfort and good view of the road." This sentiment reflects a broader trend of consumers favoring vehicles that offer versatility and enhanced driving experience.
Dudley Curtis offered a different perspective, suggesting that "it is the industry that has driven the demand through huge marketing and advertising campaigns in recent years." He added that "SUVs offered the industry a simple way of charging more for a vehicle that does the same thing." These insights point to the complex interplay between consumer preferences and industry strategies that have fueled the rise of SUVs.
Despite these challenges, there are signs of progress towards electrification within the SUV segment. According to Mike Hawes, "around two in five of these [new] vehicle models are zero emission as their body type lends itself well to electrification with longer battery range that can reassure consumers concerned about charging accessibility." This development is significant as it indicates a potential pathway for reducing the environmental impact of SUVs.
Sammy Chan highlighted another emerging trend: "This is partly because of the SUV alternatives being offered in smaller [sizes] whose sales in Europe have now grown to nearly 2.5 million in 2024 from 1.5 million in 2018." This growth suggests that while traditional large SUVs remain popular, there is also an increasing demand for smaller, more efficient models that align better with sustainability objectives.