SUVs Now Dominate Global Car Sales, Overriding Trends for Smaller Electric Vehicles

Despite predictions of a shift towards smaller, eco-friendly cars, SUVs have taken the lead, raising concerns among environmentalists.

Across the globe, Sports Utility Vehicles (SUVs) continue to dominate car sales, counteracting expectations for a move towards smaller, environmentally friendly vehicles. According to GlobalData, 54% of cars sold worldwide in 2024 were SUVs, marking a steady increase from previous years, even as the climate crisis intensifies and economic conditions evolve. The International Energy Agency (IEA) reports that a staggering 95% of SUVs on the road today rely on fossil fuels, raising alarms among environmental activists who challenge the sustainability narrative surrounding these vehicles.

Manufacturers claim their newer fleets are increasingly electrified, but even with those advancements, the demand for traditional models remains high. Initiatives such as Paris's 2024 vote on raising SUV parking fees highlight growing frustrations over emissions and urban safety issues tied to SUV ownership. While the bulk of SUVs are heavier and take resources to manufacture, their allure lies in spaciousness and driving comfort.

Counteracting expectations, sales of standard-sized electric vehicles (EVs) have seen a decline in critical markets, including Japan and Germany. In contrast, Europe is witnessing an uptick in SUV sales, with GlobalData noting a decrease from 3.27 million small hatchbacks sold in 2018 to only 2.13 million in 2024. Growth in hybrid and dual-purpose SUVs indicates a shift in consumer preferences shaped by marketing strategies and the promise of practicality.

China leads the global SUV market with nearly 11.6 million units sold in 2024, followed by the U.S., India, and Germany. This trend is fueled by improved purchasing power in emerging economies and a consumer desire for vehicles that combine utility with comfort. However, the explosion in SUV sales has raised concerns about oil consumption, with the IEA noting a significant uptick in global oil demand attributed to these vehicles. The agency further highlights that if SUVs were considered a country, their emissions would rank them fifth globally in CO2 output.

Despite some manufacturers touting the electrification of their SUV lines, over half of new models still operate on fossil fuels, which presents a considerable challenge to worldwide decarbonization efforts. Experts argue that the continuing preference for heavier, less efficient SUVs undermines previously achieved energy consumption and emission reductions. The ongoing enthusiasm for these vehicles may, as the IEA suggests, lead to setbacks in global efforts to combat climate change, emphasizing the urgent need for a new direction in vehicle production and consumer choice.