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SUVs become the largest and fastest-growing automotive segment

Staff Writer |
According to Euromonitor International, global sales of light vehicles grew 1.7% in 2014-2015, driven by the increasing popularity of Sports-utility Vehicles (SUVs), sales of which surged 22% in 2015.

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SUVs overtook lower medium cars to become the largest automotive segment in 2015, accounting for 22.9 percent of light vehicle sales globally. Sales of SUVs grew from 5 million units in 2000 to 20 million in 2015 and are forecast to hit 42 million units by 2031.

Mykola Golovko, project manager at Euromonitor International, comments: “The popularity of SUVs in the early 2000s has precipitated a rush of companies trying to capitalise, with a growing number of brands and new concept offerings like crossovers to appeal to a wider audience.”

An increasing number of consumers in key emerging markets will be in a position to trade up from smaller cars to SUVs.

However, a combination of key social changes such as urbanisation, smaller households and an ageing population, in conjunction with increasing emissions regulations, have also boosted the fortunes of the small car segment.

Euromonitor predicts that small cars will see a global Compound Annual Growth Rate (CAGR) of 2.9 percent between 2015 and 2031 but this is firmly secondary to the projected CAGR of 4.8 percent for SUVs.

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