The B-segment has been Europe’s largest car class for the past eight years, but things could change in 2014 because of rising demand for small SUVs. Sales of subcompact cars in Europe are expected to fall to 2.64 million this year, down from 2.72 million in 2013, while compact car deliveries are forecast to rise to 2.76 million this year from 2.57 million last year, according to IHS Automotive.

The consultancy firm also expects the subcompact segment’s share of total European vehicle sales will drop to 22.7 percent in 2014, well below the nearly 28 percent share in 2003. The traditional B-segment’s decline is attributed to the increasing popularity of subcompact-sized SUVs, which are stealing sales from models such as the Renault Clio and Peugeot 208 hatchbacks.

Both the Clio and the 208 have suffered volume declines in the first three months of the year following double-digit growth in 2013. Meanwhile, sales of the Clio-based Renault Captur and 208-based Peugeot 2008 have grown so fast that they would have ranked in seventh and ninth place, respectively, in Europe’s top-selling 10 subcompact vehicles if they were included in the table.

IHS Automotive forecasts the subcompact SUV sector will account for 600,000 sales by 2015. The subcompact segment’s decline is also due to the phasing out of two popular models, the Opel/Vauxhall Corsa and Fiat Punto. While the Corsa will get a successor at the end of this year, the Punto won’t be replaced before 2016.

By Dan Mihalascu

Story References: Autonews Europe

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