SUVs and MPVs: Global Overview by Region

SUVs lead category-levelgrowth globally

Among all light vehicle segments, SUVs have exhibited the strongest year-on yeargrowth over 2011-2016. This growth is expected to continue to 2021, asmore automakers add SUVs to their model ranges to meet rising demand.

MPVs are losing share toSUVs, as an abundance ofcrossovers enter the market

MPVs – a category traditionally comprising minivans or other van-likepassenger vehicles – have lost share. Consumers who once opted forminivans due to their handling characteristics and interior space are insteadmoving to crossover SUVs such as the Toyota Highlander or Lexus RX. Onenotable exception is China, where the end of the 1-child policy has spurredMPV demand. Minivans have traditionally been associated with wealth andsuccess in China, a markedly different perception than in the West.

Eastern Europe the onlySUV market to shrink over2011-2016, but future looksbrighter

Over 2011-2016 every region saw gains in its overall SUV sales except forEastern Europe, which was dampened by an economic downturn in Russia.Some signs of market stability have returned to the region, and in 2016 Ford,which kept its Russia plant open, saw sales increase for the first time in threeyears.

Future growth to beconcentrated in Asia Pacific

As SUV demand continues to grow in China, a number of new domesticbrands are entering the market. Asia Pacific is expected to maintain 5% annualgrowth over the period to 2021, fuelled largely by China.

Most markets expected togrow, but a few outliers

At a regional level, a stable global economy is expected to lead to modestgains in every combined SUV/MPV market over the period to 2021. However,a weak economy in Taiwan and geopolitical instability in Turkey risk pushingthose countries into negative growth.