- Reports indicated that China headed the world in SUV sales in 2024 with 11.6 million, followed by the US, India, and Germany.
While there were predictions for a switch to smaller, eco-friendly cars, SUVs take the lion’s share of global car sales. A report by GlobalData shows that SUVs captured 54 per cent of total cars sold in 2024, representing a consistent rise compared to earlier years. Although green initiatives are increasing, customer needs, profitability, and strong promotion keep SUVs in the limelight.
SUVs provide a combination of comfort, roominess, and elevated driving position, making them a choice favorite among consumers. GlobalData has indicated that China headed the world in SUV sales in 2024 with 11.6 million, followed by the US, India, and Germany. Increased purchasing power in emerging economies has driven demand, as consumers want cars that can be used in different situations.
Profitability is another key factor. Carmakers make more profit on SUVs than on compact cars, which makes them an attractive segment. A BBC report satated that the European Transport Safety Council points out that carmakers have pushed demand through strong marketing, projecting SUVs as aspirational and versatile vehicles.
Also Read : 43 lakh cars sold in 2024. Rural India made the push with SUVs dominating the charts
The environmental cost of SUVs
Even with the progress in electrification, 95 per cent of SUVs currently on the road still use fossil fuels, reports the International Energy Agency (IEA). Due to this, oil consumption is rising, and between 2022 and 2023, SUVs accounted for an addition of 600,000 barrels per day to global demand.
If ranked as a country, the SUVs would be the fifth largest CO2 emitter in the world, higher than Japan. Electric SUVs are also not as sustainable. Bigger battery packs use more critical minerals, which are bad for the environment. Hybrid SUVs, while saving some fuel to a point, remain combustion-based, with a 2022 International Council on Clean Transportation analysis showing that plug-in hybrids only work in electric mode about 30 per cent of the time on average.
Also Read : SUVs push car sales in India jump by 32% in October, yet unsold car stocks rise
The road ahead: Can SUVs go green?
However, manufacturers assert SUVs are more sustainable, as more than 20 per cent of new SUVs in 2023 are purely electric, up from a rapid 2 per cent increase in 2018, according to data from IEA. The producers are also advancing battery efficiency and charging points in an effort to stimulate greater usage.
But IEA officials say rising demand for heavier vehicles cancels out emissions reductions elsewhere in the car sector. For the auto industry to hit meaningful climate objectives, the shift toward zero-emission SUVs must pick up the pace much faster.
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First Published Date: 18 Mar 2025, 13:00 PM IST
