Sales of premium large SUVs in Europe declined in 2017 after three consecutive years of explosive growth during which 100.000 annual sales were added. A lack of new products may be responsible for the slowdown which caused sales to slip 6% to 270.000 units, or 1,7% of the overall European car market, down from 1,9% in 2016. The entire top-5 is down for the year and only 6 out of the 19 players in this class improve their volume this year. As you can read below, 2018 promises to bring a lot of news again so growth is expected to pick back up again. Class leader BMW X5 moves with the segment at -7%, maintaining its share at 12,8% and keeping distance to its closest rivals, the Volvo XC90 and Audi Q7 which were both in their second full year, compared to the X5 which is in its last full year. The XC90 was the best seller in the fourth quarter, allowing it to reclaim the #2 spot from the Q7. Likewise, the Mercedes-Benz GLE managed to finish the year ahead of the Range Rover Sport thanks to an excellent fourth quarter, even though both models lost more than the segment average. The new generation Land Rover Discovery more than tripled its volume in Q4 and grew by 29% for the year to reach the highest volume for the nameplate since 2007. [Read more…]
For the second consecutive quarter, the premium large SUV segment in Europe is faced with declining sales after years of booming, double digit growth. In Q3 of 2017, that turned to double digit decline with a loss of 14%, also bringing the year-to-date figure in the red at -3% to just over 210.000 sales. The segment leader BMW X5 lost market share with a loss of 22%. In fact, the entire top-3 lost with double digits and only 5 of the remaining 19 models improved their sales year-over-year in the third quarter. The other two models on the segment podium are in for a tight race by the end of the year, with the Volvo XC90 back in 2nd place in Q3 and the Audi Q7 down to 4th, behind even the Mercedes-Benz GLE. That leaves the Range Rover Sport in 5th place for the third quarter, even though it loses just 5%, outperforming the overall segment and all four of its closest rivals. Its sister model Land Rover Discovery does even better but does not yet manage to improve its volume at -1% in Q3 despite the arrival of the all-new generation in showrooms which gave the model a 42% gain in Q2. The Disco is up 13% year-to-date, the best performance in the top-9. The third model from JLR in this segment is the top-of-the-line Range Rover, up 8% in Q3 but outsold by the soon-to-be-replaced Volkswagen Touareg. [Read more…]
After 3 years and one quarter of booming growth, the premium large SUV segment in Europe has hit a roadblock. Sales were down 6% in Q2, pulling down the year-to-date growth rate to just 2%, less than the overall market. A total of 150.235 large luxury SUVs were sold in the first half of 2017. The BMW X5 is on its way for a fourth consecutive year on top of the ranking, ever since the current generation was launched. The Audi Q7 jumps from 4th place in the first quarter to 2nd in the second quarter and also grabs that position in the first half ranking, outselling the Volvo XC90 (down 30% in Q2) and Range Rover Sport (down 13% in Q2). The XC90 has seen a similar drop in the US, where they blamed it on limited availability due to worldwide demand, especially for the T8 plug-in hybrid version, but the same seems to be happening in Europe now. With less than 1.000 monthly sales, China can’t be responsible for the limited availability in Europe and the US, so there must be another explanation. We’ll keep you updated as we find out more. [Read more…]
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 of premium large SUVs in Europe continues to outpace the overall market, although at a lower rate than in the previous years. In the first quarter of 2017, the segment grew 9% to almost 80.000 sales in a total market up 7,8%. Only one model managed to op 10.000 sales this quarter, the BMW X5 thanks to sales up 10%. That means the X5 consolidates its leadership as the #2 Volvo XC90 sees stable sales compared to last year. Unlike its smaller sibling XC60, the XC90 is unable to grab the top spot in its segment, although Volvo points out to supply issues as a result of high global demand for the model. Range Rover is one of the big winners of the segment this year, with its models the two fastest growing nameplates in the segment, and the Range Rover Sport jumps up to third place at the expense of the much fresher Audi Q7 and the regular Range Rover climbs to 6th place.
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.
When the first-generation Mercedes-Benz GL-Class made its debut in 2006, many (rightly) viewed it as a super-sized version of the brand’s own ML-Class, designed to appeal to the US market hungry for large, 7-seat SUVs. But then as the second-generation model was facelifted in 2015, the company renamed it as the GLS, reflecting its new naming nomenclature, but also its desire for the model to be viewed as the “S-Class SUV”, and a genuine competitor to rivals such as Range Rover and even Bentley Bentayga. Now, the finer points on whether the GLS fulfills that brief have been debated elsewhere, but what always undermined the model’s luxury aspirations is the second-generation’s uncanny resemblance from the rear to an altogether less luxury model… [Read more…]