SUVs drive growth in the car industry in 2016

The car industry is in good shape. In 2016, 84.28 million cars were sold worldwide, according to data from JATO Dynamics (a global market analysis company). This is a 5.6% increase over 2015 and shows that the sector remains strong despite the economic uncertainty we experienced in 2016.

“Despite the obstacles the car industry had to face this year, the number of registrations rose by 5.6%, showing the resilience of the sector. Declines in sales in countries such as Japan, Russia and Brazil were offset by strong results in Europe and China,” says Felipe Muñoz, global analyst at JATO Dynamics.

SUVs increase their market share to 28.8% and lead sales in 2016, growing by 20%The sales ranking by segment shows that SUVs were the fastest-growing vehicles last year in Europe and worldwide. Their market share now stands at 29%. Mid-size crossovers were the best-selling in 2016, although compact SUVs recorded the highest growth in the segment, with a 28% increase over 2015. The best-selling crossover in the world was the Nissan X-Trail, overtaking the Honda CR-V. The Honda HR-V, Hyundai Tucson and Kia Sportage also saw large increases in their global sales volumes. “SUVs have taken a good share of the market at the expense of traditional segments. This is a global trend that we expect to continue in 2017,” says Muñoz.

Car sales by region were quite mixed in 2016. The US maintained its sales volume, while Japan and Brazil suffered significant declines compared with the previous year. In contrast, China and Europe saw strong sales growth in 2016. The Old Continent sold a total of 17.1 million vehicles (7% more than in 2015).

As for vehicle sales by brand, Toyota maintained its leadership position in 2016 as the most popular car manufacturer in the world, although it lost ground in the United States and China. For its part, despite the dieselgate scandal, Volkswagen increased its global sales by 2.8%. Honda, Kia and Mercedes were the brands that grew the most in 2016 thanks to the expansion of their SUV range. The same strategy has been adopted by Renault; its crossovers have helped increase its global sales by 28.1%. The Jeep Renegade (compact SUV) has also helped the American manufacturer boost its performance over the last year.