Growth halts in the second quarter, as segment readies itself for new models in the fall
Sales in the US Premium Large SUV segment rose by 3.6% to 244,48 in the first half of 2018, as growth fell from a healthy 6.8% in the first quarter down to just 0.6% in the second quarter. As a result, the segment was overtaken by Premium Mid-sized SUVs as the largest Premium SUV segment for the first time. While new [Read more…]
Segment grows slowly as Lexus RX extends its lead at the front
Sales in the US Premium Large SUV segment rose by 6.8% to 120,305 in the first quarter of 2018, a faster rate of growth than the 1.6% in 2017, but only just quickly enough to keep the segment ahead of the Premium Mid-sized SUV segment in the quarterly sales rankings. Although new models such as Porsche Cayenne and BMW X5 should [Read more…]
Segment grows slowly, with only Audi Q7, Tesla Model X and Maserati Levante experiencing double-digit growth
Sales in the premium large SUV segment rose by 3.8% to 151,720 in the fourth quarter of 2017, while overall sales in 2017 rose by 1.6% to 518,902. As a result, this remains the largest from amongst all premium SUV segments, though the but the lead it has to the premium mid-sized SUV segment continues to shrink. Moreover, this gap is likely to [Read more…]
Segment recovers as some of the newcomers see good sales growth
Sales of Premium Large SUVs were up 5% in the third quarter of 2017, a slightly recovery from the gently 2% sales decline over the first two quarters of the year. With a total of 366,324 units this still makes this the largest from amongst the Premium SUV segments, but the lead it has to the Premium Mid-sized SUV segment continues to shrink.
Note: after lumping really models as disparate as the Lincoln MKX and Bentley Bentayga under the Premium Large SUV banner for a long time, we have decided to split the segment into two: Premium Large SUV and Premium Full-size SUV. The difference between the two will hopefully be self-evident, but we’re aiming for the latter segment to capture models that are ahead of the more homogenous Premium Large SUV pack either through their size (Lincoln Navigator, Cadillac Escalade, Infiniti QX80, Mercedes-Benz GLS, Lexus LX), price (Range Rover, Mercedes-Benz G-Class), or both (Bentley Bentayga). Let us know what you think of this new split.
Stable sales for large luxury crossovers, slight growth for full-sized luxury crossovers.
Sales of Premium Large SUVs appear to have peaked, as first half 2017 figures are up just 1% over the same period last year, for a total of 296,538 sales. So far this year, the trend in the premium segment seems to be: the bigger the truck, the slower the sales growth. However, subdivided in Large and Full-sized SUVs, the former subsegment is down by 1% to 236,206 sales, while the really big trucks still improve by 11% to 60,332 sales. The segment has had a boost of fresh and updated models in recent years, but will take a breather in coming months. We’ve just had the launch of the new generation Land Rover Discovery to replace the LR4, but we’ll have to wait until next year for the arrival of the Lexus RX 7-seater, new generation BMW X5 and the long-awaited new Mercedes-Benz G-Class. In the full-sized subsegment, there will be more news this year, with the new generations of the Infiniti QX80 and the Lincoln Navigator arriving in showrooms in the second half, as well as an updated Cadillac Escalade.
Sales growth in the Premium Large SUV segment slowed in the first quarter of 2017, with a gain of 4.9% to 142,801 sales. Subdivided in Large and Full-sized SUVs, we can conclude that almost all of the growth comes from the latter. While large SUVs gained 1.5% to 112,501 sales, the largest premium SUVs on the road increased their sales by 19.5% to 30,300 units. This is a similar trend as with mainstream crossovers and SUVs, where also the smallest (subcompact crossovers) and the largest (full-sized SUVs) were the fastest growing “truck” segments. This segment has seen quite a few new entrants and model updates in 2016, but won’t sit still this year either, so expect the winning streak to be extended to 8 years of consecutive growth. Combined, out of 24 players in this segment, only 9 lose volume, of which just 3 with double digits, compared to 7 double digit gainers.
If you thought (or were hoping) the SUV-boom is going to end anytime soon, think again. Sales of the biggest and most expensive Off-roaders that hardly ever actually go off road rose by another 19% in 2016, which makes this the third consecutive year of double digit growth for the segment. That means in those three years European buyers have scooped up an additional 100.000 large premium SUVs annually to a total of almost 290.000 per year. If there was a clear and dominant leader the year before, in 2016 the #2 and #3 were within 10% of the leader. The BMW X5 still tops the charts but lost 3 percentage points of share as the competition has reloaded with fresh models. In fact, the X5 was in third place in Q4, behind the Volvo XC90 and Audi Q7, albeit by a tiny margin. The Swedish SUV is up 73% to take 2nd place while the Q7 gains 61% to move into 3rd place, both helped by their new generations which replace models that were first launched in 2002 and 2005 respectively. For the XC90 2016 also sets a new volume record, selling just 300 units more than in 2005.
This post is a bit unusual in that it is a “3 in 1”. First, it’s a scoop of the new upcoming mid-sized SUV from the DS brand, rumored to be called the DS7 Crossback. Second, I thought it would be a good opportunity to ask our readers about whether they think the carmaker is on the right track, both with this model and more broadly for the DS brand as a whole. And finally, I just could not help thinking the car reminds me two others that have come before it…
Sales of large premium SUVs in Europe are up 25% in the first three quarters of 2016, significantly faster than the overall market at +7,5%, and at double the rate of growth in the US, where this segment grows 13%. However, in Europe this segment takes only 1,9% of total market volume, compared to 3,4% in the United States. The podium remains unchanged from the first half of the year, with the BMW X5 still in the lead, ahead of the two newest entries in the top-10: Volvo XC90 and Audi Q7, unable to fight for the lead despite being much fresher than the X5. In fact, the Mercedes-Benz GLE also outsold them both in Q3 and moves into fourth place year-to-date, passing the Range Rover Sport. The entire top-4 of the segment is available with a plug-in hybrid option, which has helped popularity of the segment as a whole.
The large premium SUV segment is one of the fastest growing in Europe, with sales up a booming 31% in the first half of 2016, a figure only beaten by the mainstream large MPV segment. And like that segment, this is a direct result of the renewal of a few key players: two thirds of the segment growth can be attributed to just two models: the Volvo XC90 and Audi Q7. These two redesigned SUVs are still unable to knock the ruling leader BMW X5 off its throne, despite losing a big chunk of the segment share with sales flat at just +2%. The two newcomers take the bottom steps of the podium but will surely attempt another coup in the second half of the year. The Range Rover Sport also has stable sales but is relegated to fourth place ahead of the Mercedes-Benz GLE, the facelifted and renamed M-Class. Behind these five theres a wide gap to the second tier of the segment, led by the aging Volkswagen Touareg ahead of its platform sibling Porsche Cayenne, both losing double digit volume in the first half of the year.