Sales of midsized premium SUVs in Europe continue to grow in 2018, but at a lower rate than before. After four consecutive years of double digit growth, of which the last three years showed at least 20% growth, the segment was up “only” 5% in 2018. This still means that for the first time ever, over half a million luxury midsized crossovers were sold in Europe. And after claiming the segment lead last year, the Mercedes-Benz GLC consolidates its lead with a 13% gain to over 125.000 sales, almost one in every four sales in this segment. Please note that these figures include sales of the GLC Coupe, but even without those the GLC would easily top the ranking. Just imagine the sales volume (and turnover) Mercedes-Benz has missed by completely failing with the design of its predecessor GLK, which peaked at just 33.000 sales and 15% of the segment in 2012. The Volvo XC60 is down 19% in the first full year of sales for the new generation, and this is mostly due to the strong finish of the previous generation, which even continued to be sold alongside the new model in its home market Sweden. Despite sales back to its 2016 level but its market share thawed to the lowest in at least 7 years, the XC60 still holds on to its #2 spot ahead of the Audi Q5, which sees stable sales in 2018, as it also did in 2017. The Q5 has been around 70.000 annual sales for three years now, even during the changeover to the next generation and last year’s introduction of the WLTP fuel efficiency testing procedures, which meant some versions of the Q5 (and many other models) could no longer be sold after September 1st, 2018.
After discussing overall worldwide car sales in 2018, let’s zoom in on the most booming segment of all: that of EVs. Global sales of battery electric cars increased 73% in 2018 to 1.26 million units, after already jumping 86% the year before. That means worldwide sales of EVs jumped more than threefold in just two years time. Of course these are all new records as the market for electric cars is still in its infancy and has plenty of room to grow in coming years. The major factors pushing up EV sales in 2018 were demand from China (partially thanks to government incentives), the launch of the Tesla Model 3 and the diesel crisis in Europe which helped consumers become aware of the available alternative powertrain technologies and the benefits of driving electric. China was by far the largest market for electric cars, with 61% of worldwide sales registered in this market, followed by the USA with 16.6% and then Norway with 3.6%, which is also the country with – by far – the highest penetration of EVs worldwide. At 31.2%, battery electric cars represented almost 1 in every 3 sales in Norway. Including plug-in hybrids, that figure would even increase to nearly 1 in every 2 sales.
In 2018, worldwide sales of passenger cars and light commercial vehicles decreased for the first time since 2009, as carmakers sold 0.5% fewer vehicles, according to JATO Dynamics figures, based on their data of 54 top markets. Slightly over 400.000 fewer vehicle sales compared to 2017 make for a new total of 86.01 million global car sales. Passenger car and pick up sales were down 0.6% to 81.84 million and LCV sales were up 2.5 to 4.17 million vehicles. Of the major markets double digit growth was recorded by Thailand (+20%), Brazil (+14%) and Russia (+13%), the latter now a larger market than South Korea (+1,4%), while sales declined by double digits in Turkey (-35%) and Argentina (-10%) as these two countries battled economic downturns. But small declines in Europe, United States, and most significantly China had a great impact on global car sales. India on the other hand set a fourth consecutive annual sales record and finally surpassed Germany to become the world’s fourth largest car market. The fastest growing segment worldwide was that of EVs, which increased by more than 73% to over 1.2 million sales.
After two years of growth, sales of limousines in Europe are back down again, by 6% to nearly 43.500 sales, or 0,3% of the overall market. The dominant segment leader Mercedes-Benz S-Class rebounds after three straight years of lost share to return to above 33% share with over 14.000 sales. This is still a long way from the nearly 43% share the model held in 2014 and 2015 but nonetheless a strong performance between rivals that are newer and fresher in a segment where innovation and product excellence are key. The recent updates of the S-Class have helped as the interior is now up-to-date again, but the changes in exterior design have been limited to prevent owners of the pre-facelift version from feeling like they’re being driven in an “ old” car. One sidenote we always need to make here is that S-Class sales include the Coupe and Convertible versions, which the others don’t offer for their limousines.
After a double digit gain in 2017, the premium large car segment in Europe saw its sales decline by 2% in 2018, but manages to stay above 400.000 sales for the second consecutive year and still holds 2,7% of the overall car market. In the top-3, only the BMW 5-series managed to improve its share, and only by the thinnest of margins. This doesn’t necessarily mean the German domination of this segment is under threat, because the losses of their volume sedans (and station wagons) were partially offset by increased sales of their niche models in this segment. While the top-3 models see their combined share thaw from 75% in 2017 to 71,8%, the share of the German 3 brands is stable at 78,9%. The class leader Mercedes-Benz E-Class lost 8% of its sales in 2018 and drops back below 30% share of the segment. The 5-Series is less than 10.000 sales behind thanks to a 1% decline in sales, while the Audi A6 loses ground quickly with a 10% decline as 2018 was a changeover year to the new generation A6.
The midsized premium car segment in Europe shrinks for the second consecutive year in 2019, and does so by 16% to fewer than 600.000 sales or 3,8% of the overall market. That is a comparable trend to the non-luxury midsized segment, which is down 17% for the year. All top-5 players lose sales volume by 15% or more, with just the segment leader doing less terrible than the average of the class. That means the Mercedes-Benz C-Class consolidates its top spot and now has a 25,9% share, while the Audi A4 falls below 20% share. The A4 was hit especially hard in the last four months of the year, after the WLTP fuel efficiency testing standards kicked in and the brand had to stop sales of a number of popular versions of the A4, among others. Until August, A4 sales were stable on 2017, but from September onwards, the model’s average monthly sales dropped to just 30% of the average in the eight months before. In those last four months, the A4 lost almost 30.000 sales on the year before, while the C-Class lost 5.000 sales in the same period and the BMW 3-series lost 7.000 sales. With a new 3-Series in showrooms this year and Audi’s continued struggles to get the A4 tested under the new rules, there’s a significant chance of a different podium in 2019.
After five years of domination, the Audi A3 is no longer the best selling compact car from a luxury brand in Europe. In 2018, the Mercedes-Benz A-Class topped the charts for the very first time, as the overall segment shrank for the second year in a row, to below 800.000 sales, 5,2% of the entire European car market. The A-Class, helped by the introduction of the fourth generation, gained 7% to set the nameplate’s highest annual sales figure since 2005 at over 150.000 sales. The A3 lost 13% of its sales while the BMW 1-series was down 7% and was stuck in third place. Just off the podium we find two MPV models, of which the BMW 2-series Active/Gran Tourer is still the best seller despite losing 20% of its sales, as the Mercedes-Benz B-Class is down just 6%. The Mercedes-Benz CLA is down 9% which means it maintains is share of the segment, despite slowly starting to age. [Read more…]
The large SUV segment is one of the smallest in Europe with fewer than 43.000 sales in 2018, down 20% on the year before. Compare that to the US where over 2 million of these vehicles were sold last year, up 3,4%.The entire top-3 loses share and the segment best seller barely managed to sell over 10.000 units last year. Unlike the midsized crossover segment, where some models are also available as 7-seaters, there are not a lot of new entrants to this segment in Europe, but brands are actually withdrawing their slow selling models, like Nissan which no longer sells the Murano and Pathfinder and Mazda which never really sold the CX-9 in significant quantities, as opposed to the US. The latest newcomer is the Ford Edge in 2016, but after storming to the top of the ranking in its first full year of sales, we have a change of leadership for the fourth consecutive year, as the Kia Sorento reclaims the top spot that the Ford Edge stole from the Hyundai Santa Fe just one year before.
Sales of compact crossovers continue to surge in Europe, with a 15% gain in 2018 to over 1,7 million sales or 11,1% of the overall market, up from 9,6% in 2017 and 7,7% in 2016. Most of the growth comes from newly launched or very recent models. We’ve decided to separate the tables of the compact and midsized crossover segments but still feature them in one post and in one graph as the models in these classes are so close to each other in size and there are so many different opinions on which models belong in which of these segments. Combined, sales in these segments are up 15% to 13,7% of the total European car market, and VW Group and Renault-Nissan each control 22% and PSA another 17% of these segments combined, for a whopping 61% share by just three manufacturers. The Nissan Qashqai is still the best selling crossover in Europe, despite losing 7% on its record volume of 2017. Its closest rival is still the Volkswagen Tiguan, down 9% although its figures are estimates, as we don’t have official split figures from the 7-seater Tiguan Allspace and we estimate a 15% take rate for that version, which is featured in the midsized crossover segment. The Peugeot 3008 continues its impressive run and also crosses the 200.000 sales threshold thanks to a 20% increase on last year. When combining these segments, the 3008/5008 duo would be on top of the charts, just ahead of the Qashqai/X-Trail, with the Tiguan trailing at a distance. By any standard an impressive performance from the French brand, and we’re curious to see how the all-new Citroën C5 Aircross will perform once its deliveries start to show its true potential.
After briefly stabilizing in 2017, sales of small crossovers in Europe continued their booming growth curve with a 29% increase in 2018, to 1,94 million. As a result, this segment now accounts for 12,6% of the overall European car market, up almost three percentage points in a single year. Undoubtedly, over 2 million small crossovers will be sold in Europe in 2019, and it could very easily become the second largest segment after subcompact cars, but overtaking compact cars (the “Golf class”). It’s not only one of the biggest segments in terms of volume, but also in the number of players, with no less than 28 models by the end of 2018 and another handful of newcomers arriving in 2019. Meanwhile, the Renault Captur celebrates a fifth consecutive year on top of the ranking and remains the only nameplate in the segment to sell more than 200.000 copies per year, and it has done so for three years in a row without any rival coming close, even with a second generation coming out this year. In fact, the Captur’s closest rival in 2018 comes from its own ranks: the Dacia Duster sets a new annual sales record for the third straight year, improving an impressive 24% on last year’s record. Still, the Duster also loses share as that is less than the overall segment growth. The Peugeot 2008 sees stable sales, just like the Captur, but manages to stay on the podium despite losing almost 3 percentage points of share, again: just like the Captur.