UK registrations of new four-wheel drive and SUV vehicles last year fell 6.2% rather than the 15% quoted in some media, and suggestions the market segment has collapsed are wrong, the Society of Motor Manufacturers and Traders (SMMT) said.
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Some newspapers said sales declined due to factors such as pressure from the ‘green’ lobby and anti 4×4 campaigners who believe the vehicles – sometimes referred to as ‘Chelsea tractors’ after the affluent London suburb in which they’re commonplace – are politically incorrect, as well as increasing fuel prices and inner London congestion charges.
But model changes by major SUV manufacturers also played a part in the slowing sales last year.
According to SMMT data, 4×4/SUV registrations in 2006 totalled 175,805 units, down 6.2% over 2005 in an overall new car market down 3.9%.
It is likely some previous 4×4/SUV owners have opted instead for minivans (or multi-purpose people carriers or MPVs as they are known in the UK), sales of which increased 7.4% last year.
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By GlobalDataCommenting on the declining 4×4/SUV sales in the UK the SMMT said: “The three best selling models in 2005 were replaced in 2006, the Freelander, the RAV4 and the Honda CR-V. Inevitably when new models are introduced sales can be distorted as one model is on run-out and production lines gear up for the replacement.
“In last year’s market two-thirds of the 4×4 sector decline can be explained by this, and in particular replacement of the best-selling Land Rover Freelander. But for these model replacements, the market probably would have performed on a par with 2005 and would certainly not have fallen by more than the market average.”
The best selling models in the 4×4/SUV sector for 2006 were the Honda CR-V with 15,522 sales and the Land Rover Freelander with 13,286 registrations. Both Jeep and Land Rover claimed record sales last year. Jeep’s overall increase was 22.6% while sales of the Range Rover Sport increased 52% and the Range Rover by 12.5%.
The SMMT noted that the 4×4 market grew from 78,290 units in 1996 to 187,392 vehicles in 2005.
“Growth of this magnitude was never forecast to continue ad infinitum. The fact is the market is now a mature one. However, a number of new models will come on stream in 2007 and the blip caused by model replacements in 2006 will no longer apply. We believe the market will remain robust in the region of 170-180,000 units.
“Forecasts of a collapse are simply wrong,” the SMMT added.
