In the European market, which had favored small cars, preference has recently surged for midsize and large sport utility vehicles (SUVs) and midsize sedans. That is because corporations such as Tesla and BYD are rolling out electric vehicles with strong value for money while midsize and large plug-in hybrids (PHEVs) with longer electric-only range are also appearing. In response, global automakers are moving to strengthen their midsize and large lineups in Europe.
According to global market research firm Dataforce on the 20th, sales of midsize and large SUVs in Europe from January to May this year reached 474,553 units, up 27.5% from a year earlier. That is the highest growth rate among all segments, including SUVs, sedans, and vans. Although compact SUVs accounted for the largest share of the SUV market with 1,208,804 units, their growth rate was 11.9%, less than half that of midsize and large SUVs. Sales of small SUVs (940,230 units) rose only 7.6%.
In sedans (including hatchbacks and wagons), a clear preference for at least midsize models is also emerging. Small sedans, the most in-demand category, sold 786,303 units, down 1.7% from the same period last year. Compact sedans (485,999 units) plunged 15.2%. In contrast, midsize sedans reached 154,993 units, recording the only double-digit growth rate in the sedan segment at 14.0%. Microcars increased 9.7%.
Until recently, Europe clearly preferred vehicles compact or smaller. Given narrow roads and tight parking, smaller bodies are more advantageous for driving and street parking. A pragmatic mindset that views cars as simple means of transportation also played a role. A tax structure that increases the burden as engine displacement grows is another key factor driving demand for small cars.
But the landscape has begun to change as Tesla and Chinese automobile corporations release affordable EVs. The top-selling midsize and large SUV this year was Tesla's "Model Y," with 76,446 units sold, up 67.9% from a year earlier. By growth rate among the top five models by sales, BYD's "Seal U" (38,822 units) rose 49.4%, ranking second after the Model Y.
In midsize sedans, Tesla's "Model 3" took first place with 38,903 units, up 30.9%. Volkswagen's "Passat" (25,503 units) and "ID.7" (25,215 units) ranked second and third, respectively, but declined 19.5% and 22.0%. The newly launched BYD "Seal 06" quickly seized fifth with 11,490 units, and BYD's "Seal" (10,301 units) also climbed 38.9%, poised to enter the top tier.
The expansion of midsize and larger segments is also being driven by rising demand for plug-in hybrids (PHEVs). With recent PHEV advances extending pure electric range per charge to 70–80 kilometers, cost savings have been maximized. Automotive outlet Automotive noted, "In Europe, midsize and large SUVs are the second-largest area for PHEV demand after small SUVs," adding, "Pure EVs and PHEVs now account for more than 70% of the midsize and large SUV market, surpassing the former stature of diesel cars."
Brands operating in Europe are shoring up their midsize and large lineups. Stellantis plans to launch midsize and large models produced by Chinese partners Leapmotor and Dongfeng Motor Corporation in the European market. Leapmotor will build two midsize models at Stellantis's Madrid plant, and Dongfeng Motor Corporation will produce a large model in France. Peugeot will soon mass-produce the midsize SUV concept it unveiled at the Beijing auto show in April.
Chinese EV maker Li Auto is set to make a full-fledged entry into Europe at the Paris motor show in October, selecting the midsize crossover "i6" as its first model. The industry expects it to compete with the Audi "Q4 e-tron," BMW "iX3," and Polestar "Polestar 4." The i6 measures 4,950 millimeters in length, making it 200–300 millimeters longer than the Q4 e-tron and iX3.
However, Hyundai Motor and Kia are struggling to gain traction in segments midsize and above. Neither Hyundai Motor nor Kia appeared in the top 10 for midsize and large SUVs. Hyundai Motor is selling the Ioniq 9, and Kia is selling the Sorento.
In midsize sedans, Kia's "K4" sold 4,141 units from January to May, placing eighth among midsize sedans. Hyundai Motor's "Ioniq 6" ranked 10th with 2,050 units sold, but fell 3.2% from a year earlier.