The SUV Surge: A Barrier to Climate Progress

The shift towards smaller, eco-friendly vehicles predicted by climate experts hasn't taken shape as SUVs now account for over half of global car sales. With rising profits and consumer demand, the automotive industry’s focus on larger vehicles could hinder efforts to combat climate change.

Despite a strong push for smaller and more environmentally friendly vehicles due to escalating climate concerns, the automotive world is witnessing an unprecedented surge in the popularity of Sports Utility Vehicles (SUVs). Recent reports indicate that SUVs made up 54% of global car sales in 2024, reflecting a three-percentage-point increase from 2023, according to GlobalData. Alarmingly, 95% of these SUVs continue to rely on fossil fuels, underscoring the urgency of the climate crisis.

Manufacturers argue that their newer fleets increasingly feature electric models aiming to minimize emissions. Yet, environmental advocates, including Greenpeace, vehemently criticize SUVs for their resource-intensive production and potential to exacerbate the climate crisis. Experts highlight that electric SUVs require larger batteries, intensifying the demand for critical minerals and amplifying environmental pressure.

Interestingly, while a market shift was expected toward smaller electric vehicles, the sales of standard-sized EVs have declined in key markets such as Japan and Germany. In fact, the trend in Europe has seen SUV sales outpace those of smaller electric models—a reality contrasted sharply against predictions made five years ago when small hatchbacks were favored.

Driving this persistent popularity of SUVs are improving purchasing power in emerging economies and consumer preference for practical vehicles. Industry experts suggest that the higher profit margins associated with SUVs have incentivized manufacturers to double down on their marketing efforts, perpetuating demand for these larger vehicles even though their functionality closely mirrors that of smaller cars.

Consequently, the International Energy Agency (IEA) reports that the surge in SUV sales has led to an increase in global oil consumption, accounting for over a quarter of the year’s rise in demand. If classified like a nation, the global SUV fleet would rank among the top five emitters of CO2, surpassing emissions levels of major economies such as Japan.

While some industry representatives defend the market by pointing to the increasing number of zero-emission models being introduced, stark statistics highlight the environmental costs. The IEA notes that SUVs, on average, burn 20% more fuel than standard cars due to their size and weight.

Despite the inconsistency in consumer uptake of hybrid and plug-in models, which tend to operate in electric mode only 30% of the time, experts warn this step back towards heavier vehicles like SUVs may severely impact the overall decarbonization goals. Some analysts argue that this swing toward less efficient vehicles threatens to offset gains made in other areas of the passenger car market, posing a considerable hurdle to global efforts to mitigate climate change.