In brief
While predictions indicated a shift towards smaller electric cars due to climate change urgency, SUVs have surged in popularity, making up 54% of global sales in 2024, causing concern among environmentalists regarding their impact on emissions and resource consumption.
Across the world, the dominance of Sports Utility Vehicles (SUVs) on the roads is increasingly apparent, defying predictions of a shift towards smaller, environmentally-friendly models. Recent data from GlobalData indicates that SUVs accounted for 54% of all car sales in 2024, marking an increase of three percentage points from the previous year and a five-point rise from 2022. Alarmingly, 95% of these vehicles, which comprise both new and older models, still rely on fossil fuels, as reported by the International Energy Agency (IEA).Manufacturers argue that their new fleets are increasingly embracing electric models, contending that not all SUVs contribute to rising emissions. Nevertheless, Grenoble-based environmental activists assert that SUVs are major culprits in the climate crisis, consuming excessive resources during their manufacturing due to their larger size. Additionally, experts note that the production of electric SUVs necessitates larger batteries, intensifying the demand for critical minerals.Initially, there seemed to be momentum towards smaller electric vehicles, yet sales of standard electric vehicles have dwindled in key markets, including Japan and Germany, while the United States and other nations have also seen slowing sales growth. In Europe, SUVs have outpaced electric vehicle sales, contrasting sharply with forecasts made a few years ago. For instance, small hatchback sales dropped from 3.27 million in 2018 to 2.13 million in 2024, while sales of smaller-sized SUVs surged.China emerged as the front-runner in SUV sales, with nearly 11.6 million units sold in 2024. Analysts attribute this trend to rising disposable incomes and evolving consumer preferences toward versatile vehicles that offer practicality and comfort. As noted by industry leaders, SUVs have become a profitable segment for manufacturers, encouraging aggressive marketing campaigns to promote their appeal.Despite the increasing SUV sales, the IEA highlights the environmental ramifications, indicating a rise in global oil consumption of 600,000 barrels per day attributed to SUVs, equating to over a quarter of the annual spike in worldwide oil demand. Should the SUV fleet be treated as a single entity, it would rank as the world’s fifth largest CO2 emitter, exceeding emissions from several significant economies.While it holds that many SUVs still operate using fossil fuels, the IEA reports that over 20% of SUVs sold in 2023 were fully electric models, up from a mere 2% in 2018. However, findings from studies on hybrid vehicles reveal that only approximately 30% of the distance traveled by plug-in hybrids was conducted in electric mode, raising concerns about the effectiveness of these vehicles in reducing emissions.Experts warn that the shift back toward heavier, less efficient vehicle choices like SUVs poses a significant challenge to the progress made in decarbonizing the transport sector. The UK Parliament's climate change committee echoes this sentiment, indicating that the trend toward these vehicles undermines improvements in energy consumption and emissions across the broader fleet of passenger cars.
