While some prestige car segments are finding it tough going this year – the once booming luxury large SUV segment is down 11.9 per cent, for example – sales of small premium SUVs with prices starting above $40,000 are up 19.4 per cent, mainly because of the arrival this year of three key new models – the Volvo XC40, BMW X2 and Jaguar E-Pace.
These additions to the gene pool not only grow the volume with their own sales, but frequently stir activity in the showrooms of rival brands as well.
Market Insight – Luxury small SUV – Click to enlarge
Sales of the segment leader, Mercedes-Benz’s GLA, have grown 41.5 per cent so far this year, to 1395 units, while the Mini Countryman and Audi Q2 have also put on volume.
The latest comers to the segment, Volvo and Jaguar, both expect their new SUV babies to top their sales charts once they get into their stride, although neither realistically can expect the XC40 and E-Pace to knock off the well-established German contenders any time soon.
The three German brands – Mercedes, BMW and Audi – all are holding a little more than a quarter share of the segment each that has so far delivered 4926 vehicles into customer’s hands in the first four months of 2018.
Audi, through its two contenders, the Q2 and Q3, leads the segment – just – with 28.4 per cent, a smidgeon ahead of Mercedes’ 28.3 per cent and BMW’s 26.7 per cent.
Growing sales of the Audi Q2 (793 units) have not been able to offset falling sales of the ageing, larger Q3 (604), eating away at Audi’s once dominant position.
Swede success: Volvo’s XC40 is just the latest arrival on the luxury small SUV segment that has become one of the fastest growing luxury car markets in Australia.
This time last year, Audi held a 41.5 per cent segment share, but that had fallen to 37.7 per cent by year’s end, despite about eight months of Q2 sales.
The good news for Audi and its dealers is that an all-new Q3 is under development on Volkswagen Group’s new-ish MQB modular platform, and is expected to break cover at this year’s Paris motor show in September. The bad news is that it probably won’t arrive in Australia until next year.
But the best news is that it is likely to include hot SQ3 and RS Q3 variants.
BMW’s X1 has been a strong performer since it was launched in 2015, winning a mighty stoush with arch rival Mercedes’ GLA last year – 3658 to 3321.
The Beemer has fallen behind this year, slipping 10 per cent while the Benz has lifted 41.5 per cent.
However, the all-new BMW X2 has ridden to the rescue since its launch in January this year, adding 212 sales to the Munich company’s tally to keep the brand towards the front.
BMW X2
That X2 sales graph should continue upwards over the next few months thanks to an expansion of the range in recent weeks.
And while the Mini Countryman is not strictly a BMW, the German company will be happy to own its sales figures – up 207 per cent this year, to 375 units – and another 3.0 per cent of segment share.
Mercedes is also likely to gain one, perhaps two new models in the small SUV segment at some point, possibly next year.
The arrival of the new A-Class small car in showrooms this year will herald a new GLA, as it is based on the same platform and shares most of its mechanicals and technology.
Mercedes executives have hinted that next time around, a GLA Coupe will join the range, along with an another new variant, dubbed GLB by European market watchers. This is expected to be a seven-seat crossover vehicle – perhaps a stretched, three-row GLA.
Jaguar E-Pace
As Infiniti’s Q30 and its closely related QX30 are also based on the Mercedes A-Class, new versions of those might appear some time down the track, although the current models have been around for less than two years.
The current Infiniti twins have brought up the rear of the segment since launch, the victim of public indifference. This year, they have achieved just 33 sales between them – a drop of 60 per cent – but at least April’s tally was up, even if only to 13 units.
The bad news for Infiniti is that its arch nemesis from Japan, Lexus, is set to join the fray with its UX small SUV early next year.
Based on Toyota’s new modular platform that spawned the Toyota CH-R, Corolla and Prius, the UX is expected to become that brand’s best seller.
It also can be expected to cut into the European companies’ fun times in the segment, while also driving it to even loftier heights.
By Ron Hammerton
Market Insight – Luxury small SUV – Click to enlarge
