Back in 2018, 3.27 million small hatchbacks powered by fossil fuels and electricity were sold compared to 2.13million in 2024.

Sammy Chan, sales forecast manager at GlobalData revealed motorists are instead opting for SUVs. 

He said: "This is partly because of the SUV alternatives being offered in smaller [sizes] whose sales in Europe have now grown to nearly to 2.5 million in 2024 from 1.5 million in 2018."

However, the analysis from the International Energy Agency (IEA) claimed that 95% of the SUVs on the road are thought to run on fossil fuel petrol or diesel engines.

It comes after new data from S&P Global reveals a worsening outlook for the EU's electric vehicle market.

The numbers suggest there has been a downward turn in the market share expectation for battery-electric models over the rest of the year.

Forecasts have dropped from an initial expectation of a 27% market share over the first half of 2025 to just 21% today.

Sigrid de Vries, ACEA Director General, warned the electric vehicle industry faced a "looming crisis” due to a “stagnant” EV market.

He explained: “The looming crisis necessitates urgent action. All indicators point to a stagnating EU electric vehicle market, at a time when acceleration is needed.

“Apart from the disproportionate compliance costs for EU manufacturers in 2025, the success of the entire road transport decarbonisation policy is at risk."

The EU aims to achieve net-zero greenhouse gas emissions by 2050 with petrol and diesel vehicles seen as a major barrier.

In the UK, the government has pledged to ban the sale of new petrol and diesel models by 2030 but older vehicles will still be allowed to use the roads.