Do Carmakers Need SUVs To Thrive?

Love it or hate it; you definitely can’t ignore that SUVs are currently the body style that the majority prefer. You can’t also miss the obvious fact that a large number of carmakers are surviving on SUV sales alone. It has come to a point where carmakers are completely depending on SUVs for market share and they need these high-riders to save them from going bankrupt. Sedans were the favoured body style from the time we know, but as it stands now, we know carmakers who are completely giving up on this body style. Ford had announced that it is phasing out sedans from the U.S. market, which we all know is heavily dominated by trucks and SUVs. 

Dial back a few years and there was no such thing as a compact/sub-compact SUV or even a pseudo mini SUV. There were just full-size SUVs and mid-size SUVs. The market’s crazy obsession with SUVs has spawned multiple new segments all across, eating up into sedans’ market share. If you’re interested in the statistics, 8 out of the 10 best-selling cars in the U.S are SUVs. 6 out of 10 best-selling cars in the U.K are also SUVs. The numbers more or less convey the same story in India as well, considering there are 9 SUVs in the list of top 25 best-selling cars in India.

It has come to the point that every other car launch happening in India is a new SUV. So much so that when recently Skoda and Volkswagen came out with the Slavia/Virtus twins, we actually celebrated and rooted for them. Why? Because we know that the fate of sedans is pretty much sealed and there’s not much hope for a resurrection. Last month’s sales figures for Skoda say the same. The Slavia is doing good numbers, but the Czechs happen to sell more Kushaqs. SUVs have invaded every segment you can think of, and the latest onslaught is the hatchback space, which is flagged by the Tata Punch and the Citroen C3. Kia’s success story and how they cracked the Indian automotive market is largely down to their choice of well-engineered SUVs. Honda’s not-so-pleasant struggle is also down to the absence of SUVs which they have recognized. It is ironic how the now defunct Ford, which pioneered the sub-compact SUV segment with the Ecosport, failed to come up with a bigger SUV to take on the Hyundai Creta.

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But the surprising bit is how SUVs are taking over the supercar space. Well, it all started when Porsche made the Cayenne so they could bankroll the fantastic Carrera GT. What basically started as a cash cow is now one of Porsche’s best-selling models; and it made the Macan, which is a cut-price version of the bigger SUV. If you keenly follow automotive news, you would also know that Porsche is prepping a flagship electric SUV based on the Taycan platform. Soon after the Cayenne’s runaway success, other mainstream carmakers followed suit with sports SUVs. 

Little did we know that super SUVs were a thing. Bentley and Rolls-Royce gave in and brought in the Bentayga and Cullinan. Both of these bring in the most revenue for the brands. But it is Lamborghini, which really tasted success with the Urus. Did you know that on average, Lamborghini sells a Urus every week in India? What’s impressive, though, is the fact that the Urus serves as a gateway to the Italian marque with 80 percent of the 200 owners being first-time Lamborghini customers. This is huge. And let’s not forget Aston Martin, which fought against all odds and doubled its sales in 2021, all credits to the DBX.

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These numbers are too hard to ignore, and Maranello saw it coming. Despite Ferrari saying an SUV doesn't fit their lineage, the marque is readying the Purosangue SUV which is headed for a launch in 2023. But in the midst of this and not too long ago, McLaren stood out by saying that SUVs are not cool and that it won’t make one. Well, that did not age well. McLaren has also accepted the inevitable by announcing plans to develop an all-electric SUV by 2030. 

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That leaves us with almost no mainstream manufacturer or supercar brand remaining to introduce an SUV. Of course, we have the likes of Bugatti, Pagani, Koenigsegg, and some niche carmakers like the Alpine, Abarth, Caterham, Dallara, etc. In all fairness, we won’t be surprised if Bugatti or Koenigsegg announces a new SUV in the near future. It is not a secret that carmakers need SUVs for their survival. This is the same for a small-scale brand that thrives on hatchbacks as well as a high-end brand that produces supercars/hypercars. The market and its demands are brutal at times and at the end of the day, it is nothing but a big fat race. A couple of years down the line, SUVs might or might not be the most popular body style around. With how things are at present, SUVs are more than likely to become the norm. So, if you are someone who loves sedans, our word of advice is to hold on to them, dearly. Feels awful to know that uber-cool and practical wagons will be first to cross the rainbow bridge.