Despite expectations of a shift to smaller, eco-friendly cars amid the climate crisis and rising costs, SUVs continue to dominate the market. Predictions of their decline have not materialised, with SUVs making up 54% of all cars sold in 2024. The International Energy Agency (IEA) reports that 95% of SUVs on the road still burn fossil fuels, raising concerns. While manufacturers highlight an increase in electric SUVs, critics argue their larger batteries require more critical minerals, increasing environmental strain. Additionally, Greenpeace and other environmental groups see SUVs as a major contributor to emissions and resource consumption.
Smaller electric vehicles are struggling in key markets, with demand falling in Germany and Japan. Even in Europe, where electric sales were expected to rise, SUVs have overtaken hatchbacks. In 2024, China led SUV purchases, followed by the US, India, and Germany. Experts cite rising incomes in emerging economies as a factor, while analysts argue that aggressive marketing and high profit margins drive demand. Manufacturers are increasingly producing more compact SUVs, which have grown in popularity and further expanded the market.
The environmental impact is severe, with SUVs responsible for a 600,000-barrel daily rise in oil consumption. If classed as a nation, they would be the world’s fifth-largest CO2 emitter. SUVs consume 20% more fuel than mid-sized cars, worsening transport’s contribution to carbon emissions. Road transport remains a leading cause of global warming, and scientists warn urgent action is needed to curb its impact.
Manufacturers claim more SUVs are now electric, but studies show hybrids still rely heavily on fossil fuels. Research in Europe found plug-in hybrids operate in electric mode only 30% of the time. While fully electric SUVs are increasing, they still make up a minority of sales. The IEA warns that the rise of larger, inefficient vehicles is undermining global efforts to cut emissions, putting decarbonisation goals further out of reach.
