May 10, 2026

The Rise of SUVs

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Originally, SUVs were multi-purpose vehicles with a utilitarian nature; due to their relatively rugged specifications and lack of comfort, they were not mainstream in the consumer market. Models like the classic Land Rover Defender, Ford Bronco, and Toyota Land Cruiser were essentially workhorses designed for off-road capability and traversing rough terrain-so much so that, in the U.S., they were once classified as trucks.

 

However, the launch of the Toyota RAV4 and Honda CR-V in the 1990s introduced the concept of the "urban SUV." These vehicles combined the high driving position, spacious cargo capacity, and all-wheel-drive capability of traditional SUVs with the comfort and fuel efficiency of standard passenger cars, bridging the gap between road-bound sedans and the rugged, utilitarian SUVs of the past.


The RAV4 and CR-V became instant hits in the U.S. and global markets, paving the way for luxury models like the BMW X5, Porsche Cayenne, and Mercedes-Benz ML; the urban SUV format quickly won over consumers. Meanwhile, sedans-previously dominant in Europe-began to lose ground, gradually surrendering their leading position after 2010. European buyers shifted their attention to small and compact SUVs with superior cargo capacity, a trend that even impacted the station wagon, a body style traditionally favored in the region.

 

In the Chinese market, the urban SUV seemed almost tailor-made for local consumers, rapidly capturing market share from the sedan segment, which had only recently begun to experience explosive growth. Especially after 2010, even those with little interest in cars knew that buying an SUV was a safe bet, simply because everyone else was doing it.

 

Unlike in the U.S. or Europe, where households often own multiple vehicles, a car in China is frequently the family's sole vehicle. This creates a high demand for interior space-explaining the earlier prevalence of "China-exclusive" long-wheelbase sedans. SUVs, with their taller profiles and generous cargo capacity, hit the mark perfectly; a single vehicle could accommodate the entire family and their luggage. Eventually, even extended-wheelbase versions of SUVs began to appear.

 

It was this boom in the SUV market that drove a shift in the fundamental nature of the automobile, transforming it from a vehicle defined primarily by the driving experience into one that plays a more diverse and multifaceted role in daily life. Meanwhile, as the number of car owners in China continues to rise, the average motorist-unlike the dedicated automotive enthusiast-places less emphasis on vehicle handling and performance; this shift has, to some extent, mitigated the disadvantages SUVs traditionally faced compared to sedans regarding center of gravity, handling dynamics, and driving engagement.

 

The Toyota RAV4 and Honda CR-V-pioneers of the urban SUV segment-have each surpassed 10 million units in global sales, with cumulative sales in the Chinese market exceeding 1.8 million and 2.6 million, respectively. Subsequently, Volkswagen's formidable brand strength in China drove the massive success of the Tiguan, while the Haval H6-renowned for its exceptional value-dominated sales charts for years, earning the status of a legendary model. The Toyota Highlander, with its three-row, seven-seat layout, wheelbase approaching 2.8 meters, and low failure rate, remains an enduring favorite; since its introduction to the Chinese market in 2007, it has achieved cumulative sales of over 1.4 million units.

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