Small city cars have long dominated European roads, but in the last five years, the number of SUVs has experienced a real explosion. The figures bear this out, as SUVs now account for more than half of all new cars sold across Europe, a sharp increase from just a few years ago, thanks in large part to the popular crossoverima poput VW T-Roca i Toyote Yaris Cross.
What has changed is not only customer preferences, but also perception itself. Europeans used to sneer at Americans for their obsession with SUVs and pickup trucks, but those days are over. SUVs are no longer considered wasteful and unwieldy vehicles, but practical and urban options with a wider appeal. Big brands like Volkswagen, Renault, Ford and Toyota have reshaped the segment with compact models that are slightly raised and look more robust, yet fit seamlessly into urban environments that once belonged to small hatchbacks.
Figures that confirm dominance
According to a report carried by Autonews, sales figures reveal that as recently as 2020, SUVs held a healthy 41 percent of the total European market. That figure has since risen to an incredible 59 percent. As more and more people buy SUVs and crossoverethus reducing the number of those who take over the keys of the small hatchbacka or limousines. While they are hatchback In 2020, they held 35 percent of the European market, by 2025, that share had dropped to only 23.9 percent. In terms of volume, that’s a dramatic drop from 4.2 million to just 2.9 million copies sold.
Despite the overall decline in sales in the segment, a few hatchback continues to attract strong demand. The Renault Clio, VW Golf and Dacia Sandero remain hugely popular, with the Sandero expected to end 2025 as the best-selling new car in the region. The success of Sander lies largely in its affordability. With a price starting below €13,000 in Germany, it has become the first choice for value-for-money buyers. Its sales increased from 168,443 units in 2020 to more than 225,000 by November last year, making it on track to become the best-selling European model for the second year in a row.
Limousines and station wagons also suffered
The market share of sedans is also in decline, from 4.7 percent in 2020 to just 3.5 percent in 2025. Although 565,244 units were sold that year, the total is expected to drop to around 426,000 when the final figures for 2025 are confirmed. The best-selling sedan last year is likely to be the Tesla Model 3 with 76,079 units sold, putting it more than 37,300 ahead of the second-placed Mercedes-Benz CLA. The only exception to this trend is Romania, where sedans still account for 15.4 percent of the new car market, far more than anywhere else in Europe.
The growing demand for SUVs has also taken its toll on station wagons. The market share of these models has fallen from 10.2 percent five years ago to 7.1 percent in 2025. Long-time favorites such as the Skoda Octavia and VW Passat are particularly affected as more buyers opt for SUVs instead of traditional wagons. Among SUVs, the most successful model in 2025 was the VW T-Roc with 192,245 units sold. It is followed by VW Tiguan (180,683), Toyota Yaris Cross (174,567), Peugeot 2008 (160,104) and Dacia Duster, which found 157,004 new owners.