- SUVs now account for 59 percent of new car sales across Europe.
- The popularity of hatchbacks has diminished sharply, dropping from 35 percent to just 23.9 percent.
- Sales of sedans have likewise fallen to 3.5 percent, with the Tesla Model 3 leading the pack.
The European car market has seen a remarkable shift over recent years. SUVs, once a niche market, now dominate the landscape, comprising over half of new car sales. This surge is driven by compact crossover models like the VW T-Roc and Toyota Yaris Cross, making SUVs the vehicle of choice for many consumers.
Beyond mere numbers, a change in consumer perception has fueled this transformation. No longer seen as gas-guzzlers, SUVs are regarded as practical choices for urban living. Their higher ride height and rugged appearance offer a sense of safety and versatility that appeals to a broad demographic.
Mainstream automakers like Volkswagen, Renault, Ford, and Toyota are responding with compact SUV models that maintain efficiency while providing a tough aesthetic. These vehicles allow drivers to navigate city life without sacrificing comfort or space.
How Buyers Are Rewriting the Segment
According to a report from Autonews, SUVs commanded a 41 percent share of the European market in 2020. This figure has surged to 59 percent, leading to a significant decline in hatchback and sedan sales.
The hatchback market, once robust with a 35 percent share, has fallen to 23.9 percent in 2025, translating to a loss of approximately 1.3 million units. As the preference shifts, traditional compact cars struggle to maintain their foothold despite a few models like the Renault Clio, VW Golf, and Dacia Sandero retaining popularity.
Why the Sandero Wins
The Dacia Sandero’s success can be attributed to its affordability, starting at under €13,000 (approximately $14,000) in Germany. This price point appeals to those prioritizing value, driving sales from 168,443 units in 2020 to an expected 225,000 by the end of 2025, potentially making it Europe’s best-selling car for the second year running.
Sedan sales are also facing challenges, slipping from 4.7 percent in 2020 to merely 3.5 percent in 2025. With total sedan sales expected to tally around 426,000 units, the Tesla Model 3 emerges as the top performer in this category, ahead of the Mercedes-Benz CLA.
Interestingly, sedans maintain a stronger position in Romania with a 15.4 percent market share, a notable contrast to trends elsewhere in Europe.
Best-Selling SUVs In Europe
Source Autonews / Dataforce
The demand for SUVs is clearly shaping the automotive landscape in Europe, diminishing the once-popular estates. The market share for these models has fallen from 10.2 percent to just 7.1 percent in 2025. Iconic names like the Skoda Octavia and VW Passat are losing traction as buyers continue opting for SUVs over traditional estate models.
Leading the SUV sales in 2025 is once again the VW T-Roc, with an impressive 192,245 units sold. The VW Tiguan trails closely behind, followed by the Toyota Yaris Cross, Peugeot 2008, and Dacia Duster, all contributing to a remarkable shift in consumer behavior across Europe.
