The rise of Sport Utility Vehicles (SUVs) has reshaped the automotive landscape, capturing a significant market share. However, a new report by the Global Fuel Economy Initiative (GFEI), supported by the FIA Foundation, reveals a concerning trend: the increasing size and weight of SUVs are significantly undermining the progress made in vehicle fuel efficiency and climate change mitigation, even with the growth of electric vehicles (EVs). This analysis delves into the key findings of the report, exploring the implications for Fuel Economy Suvs and the broader automotive industry.
The report, titled ‘Trends in the global vehicle fleet – managing the SUV shift and the EV transition’, highlights several critical trends in the global car market. Between 2020 and 2022, the annual rate of energy intensity reduction for light-duty vehicles (LDVs) averaged a promising 4.2%. This improvement is largely attributed to the increasing adoption of EVs. However, this positive momentum is being countered by the escalating popularity of SUVs, which now constitute the largest segment of the new car market, accounting for 51% of sales. Furthermore, the average weight of LDVs has reached a record high, exceeding 1.5 tonnes. This shift towards larger and heavier vehicles is negating climate benefits; the report estimates that CO2 emissions could have been 30% lower between 2010 and 2022 had vehicle sizes remained constant.
The Dominance of SUVs and Its Environmental Repercussions
SUVs have not only increased their market share but have also grown in size and weight. This trend is observed across nearly all major automotive markets globally. In 2022, global SUV sales surpassed those of conventional cars for the first time, marking a significant shift in consumer preference. The average footprint of a new car has also expanded, reaching approximately 4.2 square meters. From a manufacturer’s perspective, SUVs are highly profitable, offering premium pricing while often benefiting from proportionally lower manufacturing costs. This economic incentive can inadvertently hinder the transition towards more fuel-efficient vehicles, including EVs.
Electric Vehicles: Progress Hampered by Vehicle Size
The rapid advancements in energy efficiency and reductions in direct CO2 emissions are primarily driven by the increasing uptake of EVs. In 2022, EVs represented 15% of global new car sales, and this strong market share has continued into 2023. Electric powertrains are significantly more energy-efficient, consuming three to six times less energy than internal combustion engine vehicles for the same distance traveled. Markets with robust EV adoption, such as China and Europe, have witnessed the most substantial annual improvements in energy efficiency, approaching 6%. Conversely, regions with lower EV uptake, like North America, have seen considerably lower improvement rates, around 1.6%. Despite the benefits of EVs, the increasing size of vehicles, particularly SUVs, diminishes the overall positive impact on fuel economy and emissions.
Policy Recommendations for Reversing the Trend
The GFEI report urges governments to implement policies that address the growing size of vehicles. Setting caps on vehicle size is recommended to explicitly limit and eventually reverse the SUV trend, alongside accelerating the transition to EVs and promoting energy-saving technologies.
Further policy recommendations include stricter environmental and safety regulations for high-utilization vehicles such as company cars, taxis, government fleets, and ride-sharing services. The report also emphasizes the need for investments in renewable energy, the reversal of fossil fuel subsidies, the implementation of carbon pricing, regulations on minimum EV charging infrastructure deployment, and financial mechanisms to facilitate affordable access to EVs.
Sheila Watson, Deputy Director of the FIA Foundation, emphasizes the severity of the issue: “Growing vehicle size is a huge problem which is threatening many aspects of sustainable mobility, from climate to road safety. This report shows that we must move away from these mega-vehicles if we are to achieve the GFEI goal of doubling the fuel efficiency of cars by 2030. Vehicle size matters – and in this case bigger is definitely not better.”
Dan Sperling, Founding Director of the Institute of Transportation Studies at the University of California, Davis, further adds, “Reversing the trend toward bigger and heavier vehicles is key to achieving more sustainable mobility. This applies also for electric mobility, to make the market for EVs more equitable and inclusive—and to reduce the need for critical minerals and more electricity.”
In conclusion, while technological advancements like electric vehicles offer pathways to improve fuel economy, the escalating size and market dominance of SUVs present a significant challenge. Addressing this requires a multifaceted approach, combining policy interventions that limit vehicle size with continued support for EV adoption and broader sustainable mobility initiatives. The future of fuel economy SUVs and the automotive industry’s contribution to climate goals hinges on effectively managing this vehicle size paradox.
Click here to read the ‘Trends in the global vehicle fleet 2023’ report
