In 2023, the global automotive landscape saw a significant surge in the popularity of SUVs, with approximately 30 million internal combustion engine SUVs joining the world’s roads. This number is strikingly similar to the total number of electric cars currently in operation worldwide, highlighting the continued dominance of SUVs in the market, even amidst the electric vehicle revolution. The year also witnessed an impressive array of 500 electric car models globally, with SUVs comprising a substantial 60% of this offering, a notable increase from previous years. Automakers are signaling a further commitment to this trend by planning to introduce even more electrified SUV models in the near future.
Electric SUVs are now a major segment, accounting for about 45% of the global electric car fleet. This share would be even higher if not for the strong demand for smaller electric cars in Chinese urban centers. In advanced economies, the preference for SUVs in the electric vehicle market is even more pronounced, reaching 55%. This skew is largely due to the limited availability of smaller, more affordable electric alternatives in these regions.
However, the growing preference for SUVs presents challenges. Despite advancements in fuel efficiency and the shift towards electrification, SUVs, being heavier and less aerodynamic, typically emit around 20% more emissions compared to an average medium-sized car. This trend risks negating the progress made in reducing emissions within the passenger car sector over recent decades. Furthermore, the larger batteries required for electric SUVs increase the demand for critical minerals, raising concerns about resource sustainability. From an urban perspective, larger vehicles also pose safety risks to pedestrians due to their higher front ends and demand approximately 10% more parking space than medium-sized cars, exacerbating space constraints in densely populated cities.
Recognizing these challenges, several countries and cities are beginning to take action to manage the demand for SUVs. France, Norway, and Ireland are among the nations exploring or implementing legislative frameworks aimed at moderating SUV adoption. Major urban centers like Paris and Lyon are already introducing differentiated parking fees, specifically targeting SUVs with higher charges in city centers.
While the transition from fossil fuel vehicles to electric vehicles is crucial for achieving global energy and climate objectives, it is not the only solution. To ensure a truly sustainable future, complementary measures are essential. These include optimizing EV battery sizes, implementing fuel efficiency standards that are differentiated based on vehicle size, and investing in innovative battery technologies. These advancements should focus on enhancing performance and durability while simultaneously reducing material demand, paving the way for a more sustainable automotive future beyond just electrification.
