SUVs accounted for almost half of all cars sold globally last year

SUVs accounted for almost half of all global car sales last year as hatchback, estate and saloon volumes dipped, new figures have today revealed.

SUVs have been growing in popularity over the last decade, with manufacturers expanding their line-ups to compete in what has become the industry’s most competitive segment.

Last year, SUV sales rose by 16% to hit 36.72 million, automotive data firm Jato Dynamics has revealed. This accounted for 47% of the 78.32m sales last year – SUVs' highest ever market share. 

A big reason for SUVs' popularity was the success of the Tesla Model Y. Sales totalled 1.22m, up 64% on 2022, making the EV the best selling car globally, beating ICE rivals such as the Toyota RAV4.

The dependence of the SUV body shape for manufacturers was highlighted by Hyundai Motor Group, with SUVs accounting for 56% of its car sales, Ford (49%) and the Volkswagen Group (48%).

Elsewhere, sales of Chinese cars exceeded sales of American cars for the first time, despite both enjoying a global rise in sales.

In total, 13.43m Chinese cars were sold, up 23% on 2023, while 11.93m American cars were sold, up 9%.

This growth has been evident in both the UK and European markets, which have become increasingly flooded with Chinese cars, especially EVs, such as the MG 4 EV and BYD Atto 3.

Their success has been down to lower prices (as much as 20% over locally made rivals), thanks to their heavily government-subsidised production costs.

The impact of these cars could be hit this year, however, after the European Commission yesterday announced raised tariffs of up to 38.1% for Chinese cars imported into the EU.

Jato senior analyst Felipe Munoz said: “As the domestic market shows signs of deceleration, Chinese manufacturers are searching for sources of growth abroad. 

“Ambitions to develop a presence in the US and Europe have been disrupted by robust policy measures designed to protect legacy manufacturers.

“Chinese brands have already been successful across the emerging economies, due to easier access policies, lower trade barriers and higher price sensitivities among consumers. 

“The EU decision to impose tariffs of up to 38% on imported Chinese EVs from as soon as July this year offers fresh rationale for a continuation of this strategy.”

Despite this, it was Europe that was the world's fastest-growing car market, up 16%, to 16.07m cars sold.