JATO Dynamics,
the world’s leading provider of automotive data and intelligence has
commented that the market for SUVs seems to be undergoing a period of
transition.
Still a buoyant
segment, the 4x4 and SUV market has for many years enjoyed a period of
unprecedented growth, with an increasing appetite from consumers for
the chunky, purposeful looks and high driving position associated with
that type of vehicle. In many markets the vehicles also enjoy a certain
social status that continues to draw consumers from areas of the market
that have no apparent purpose for off-road capability.
However, JATO has
been tracking trends within the segment and is of the opinion that
manufacturers are now responding to the changing demands of consumers.
Many ‘new-to-the-market’ SUVs are noticeably smaller than the older,
established models and many now only offer four-wheel drive as an
optional extra.
“Rising fuel
costs, the spiralling CO2 debate and the associated social pressures
are putting a strain on the SUV segment,” says Nasir Shah, Sales and
Marketing Director at JATO Dynamics. “Whilst many buyers still have a
desire to own these cars, there is a genuine need to make them cheaper
to own and run. If not, it will become a segment in serious decline.”
The relationship
with off-road vehicles differs in countries across Europe. In the UK
particularly, there has been a noticeable back-lash against large cars
in general and particularly 4x4s. Increased taxation is making them
less attractive to both retail customers and fleet operators and the
outlook for segment is beginning to look difficult.
Even in Germany
where SUVs are still in huge demand thanks to the strong domestic
manufacturer products, public opinion is starting to question the
impact on key environmental
factors.
Judith Studer,
Research Manager for JATO Switzerland, says: “Even in a mountainous
country like Switzerland where there’s a really good justification for
using an off-road vehicle, the large, thirsty models are starting to
find themselves in the firing line. There are critical voices here
relating to SUVs and they are starting to get louder.”
Nasir Shah
is sure that the segment will need to continue to evolve. He says:
”Clearly, manufacturers respond to market forces and currently the
market is being influenced by both a change in customer requirements as
well as European legislation. As long as SUVs are seen to be the
environmental bad boys, they will continue to attract the attention of
legislators. The recent changes to UK taxation are testament to this
and we are confident that other countries will follow suit.”