SUVs now dominate European roads, capturing 59% of new car sales in 2025. Discover why hatchbacks fade and which models lead the surge. Read more now.
For decades, compact hatchbacks ruled the streets of Europe. Over the last five years, however, the tables have turned: sport‑utility vehicles (SUVs) now account for 59% of all new‑car registrations across the continent, according to a recent Autonews report.
Why SUVs Are Winning the European Heart
European drivers once mocked the American obsession with big, fuel‑guzzling trucks. Today, perception has shifted. Modern SUVs are viewed as practical city companions—offering higher ride‑height, versatile cargo space, and a stylish presence without the excessive fuel penalty of older models.
Hatchbacks and Sedans Lose Ground
In 2020, hatchbacks held a 35% market share and sold roughly 4.2 million units. By 2025 that share fell to 23.9%, with sales dropping to about 2.9 million cars. Sedans fared similarly, slipping from 4.7% to 3.5% of the market. The most‑sold sedan of 2025 is expected to be the Tesla Model 3, pulling ahead of the Mercedes‑CLA.
Budget Heroes: Dacia Sandero and Renault Clio
Even as the overall hatchback segment shrinks, a few models remain strong sellers. The Dacia Sandero, priced under €13,000 in Germany, surged from 168,443 units in 2020 to more than 225,000 by November 2024. Analysts predict it will close 2025 as Europe’s best‑selling new car for the second consecutive year. Renault’s Clio and Volkswagen’s Golf also retain loyal followings.
Top‑Selling SUVs in 2025
- Volkswagen T‑Roc – 192,245 units
- Volkswagen Tiguan – 180,683 units
- Toyota Yaris Cross – 174,567 units
- Peugeot 2008 – 160,104 units
- Dacia Duster – 157,004 units
- Other notable performers: Citroën C3, Ford Puma, Kia Sportage, Hyundai Tucson, Nissan Qashqai
Regional Nuances
Romania stands out as an exception: sedans still command about 15.4% of new‑car sales, far higher than any other European market.
The Wagon’s Decline
Wagon‑type cars have also felt the SUV surge, slipping from a 10.2% share five years ago to just 7.1% in 2025. Long‑standing models such as the Skoda Octavia and Volkswagen Passat have seen sharp sales drops as buyers migrate to crossovers.
Overall, the European automotive landscape is being reshaped by a clear preference for higher‑ground, versatile vehicles that blend city‑friendly size with the rugged appeal of an SUV.