Despite forecasts predicting a shift towards smaller, environmentally friendly vehicles, SUVs continue to dominate global car sales. According to a report by GlobalData, SUVs accounted for 54 percent of total car sales in 2024, marking a steady increase from previous years. While there is a growing emphasis on green initiatives, factors such as consumer preferences, profitability, and robust marketing efforts keep SUVs at the forefront of the automotive market.

The appeal of SUVs lies in their blend of comfort, spaciousness, and elevated driving experience, making them a preferred choice for many consumers. GlobalData reports that China led the world in SUV sales in 2024, with 11.6 million units sold, followed by the United States, India, and Germany. The rising purchasing power in emerging markets has fueled demand, as consumers seek vehicles that are versatile for various uses.

Profitability also plays a crucial role in this trend. Automakers earn higher profits from SUVs compared to compact cars, making this segment particularly appealing. A report from the BBC highlights that the European Transport Safety Council has noted how manufacturers have stimulated demand through aggressive marketing, positioning SUVs as desirable and adaptable vehicles.

The environmental cost of SUVs

Despite advancements in electrification, the International Energy Agency (IEA) reports that 95 percent of SUVs currently in operation rely on fossil fuels. This reliance has led to an increase in oil consumption, with SUVs contributing an additional 600,000 barrels per day to global demand between 2022 and 2023.

If SUVs were classified as a nation, they would rank as the fifth largest emitter of CO2 worldwide, surpassing Japan. Furthermore, electric SUVs are not necessarily a sustainable alternative. Larger battery packs require more critical minerals, which have detrimental effects on the environment. Although hybrid SUVs can save some fuel, they still operate primarily on combustion engines. An analysis by the International Council on Clean Transportation in 2022 revealed that plug-in hybrids function in electric mode only about 30 percent of the time on average.

The road ahead: Can SUVs go green?

Manufacturers, however, claim that SUVs are becoming more sustainable, with over 20 percent of new SUVs in 2023 being fully electric, a significant increase from just 2 percent in 2018, according to IEA data. Producers are also working to enhance battery efficiency and expand charging infrastructure to encourage greater adoption.

Nevertheless, officials from the IEA warn that the growing demand for heavier vehicles undermines emissions reductions achieved in other areas of the automotive sector. For the industry to meet significant climate goals, the transition to zero-emission SUVs must accelerate considerably.

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