Market Insight: Light SUVs on the march

HISTORY shows invasion of the passenger car market by SUVs has been mostly concentrated on the mid-size categories, where the traditional sedan has slipped to a fraction of sales of a decade ago.

But so invasive is the SUV genre that even the longstanding hatchback sector looks almost nothing like it did in its halcyon days when these compact models ruled the commuter market.

It has become so prevalent that some manufacturers have stopped making hatchbacks and now offer only SUVs, albeit in many cases these are simply high-riding hatchbacks with chunky styling that even retain two-wheel drive and city-bred suspension.

Small SUVs quickly became a ‘must have’ so that by 2020 there simply were too many of them. So the ‘small SUV’ category spawned an offshoot, the ‘light SUV’ category.

There are now 10 light SUV models and 31 small SUVs to choose from and as sure as the sun is to rise tomorrow, more are coming.

A turning point in the trend away from micro and light passenger cars and into light SUVs was this year. 

In the year-to-date July data, light SUVs found 31,388 buyers. This compares with a combined 31,029 sales in the micro and light passenger car segments.

Two years ago – in the same seven-month period – the light SUV segment accounted for 14,353 sales. Micro and light cars almost doubled that figure with 24,613 units.

So the turnaround to SUVs has been quick and decisive. 

Much of the reason for this move starts with the common SUV styling that has become a generic ‘go-to’ for buyers. Then there is the availability factor as some OEMs now only make SUVs in these smaller segments.

Add to that the fact that the baby SUVs have all the features of the passenger cars while their upright stance makes them easier to get into and out of, and it is clear why older customers and those lifting kids in and out of their child restraints can see the appeal.

The most popular light SUV is the Mazda CX-3 (from $23,390 plus on-road costs) with 19.6 per cent of the YTD July market, despite its sales being clawed back by supply issues and its result down 39.5 per cent on the same period in 2021.

Kia’s Stonic was the second-highest seller, with a 17.0 per cent market share and 5342 sales. This is one of the newer players and gets buyer attention for its comprehensive feature list and keen pricing, starting at $21,990 plus on-road costs.

Toyota’s Yaris Cross is another relative newcomer with pricing from $26,990 plus on-road costs, and one of the most popular with a 15.7 per cent share of the segment – which is up 5.5 per cent on the same period in 2021.

The Hyundai Venue has a 14.2 per cent share and like the Kia Stonic with which it shares some common components, has enjoyed a strong 23.4 per cent gain in the past year. It is also the most affordable of the top five light SUVs at $21,740 plus on-road costs.

Fifth most-popular of the 10 light SUVs is Volkswagen’s T-Cross with a 10.1 per cent share and 3181 sales for the seven months, down 20.8 per cent on 2021. It is also the most expensive of the five with a starting price of $30,750 plus on-road costs.