Sales of sport-utility vehicles have plunged this year because of rising petrol prices but larger premium models seem to be less affected than those from the smaller and cheaper brands.
Generally, SUVs consume more fuel as they often have permanent four-wheel-drive and also because they are usually bigger and heavier than many saloons and hatchbacks. But they have been popular among car buyers because of their rugged styling and commanding view of the road, due to the higher driving position.
In the first four months of this year, total sales of SUVs dived almost 30 per cent to 1,326 units compared with the same period last year among members of the Motor Traders Association of Singapore (MTA), a grouping of authorised distributors.
But if this number is divided into mid-sized SUVs (usually smaller and cheaper) and large-sized SUVs (more upscale), then the former was hurt more badly with sales plunging 37.4 per cent to 817 units this year. Those categorised as mid-sized SUV models here include the Hyundai Tucson and Santa Fe, Kia Sportage, Mitsubishi Outlander, Mazda CX7, Suzuki Vitara, Honda CR-V and Toyota RAV4, among others.
By comparison, the number of larger and more expensive SUV models has only slipped 4.7 per cent to 509 units. These include the BMW X5, Lexus RX series, Volvo XC90 and Nissan Murano, among others.
Last year, MTA members sold 3,329 mid-sized SUVs and 1,569 larger SUVs for a combined 4,898 units in a market of 81,493 cars (excluding parallel imports), or a 6 per cent market share.
So far until April this year, the SUV market share among MTA members is 5.4 per cent of the 24,515 total.
'An SUV is a bigger car and consumes more petrol,' says one motor distributor. 'With fuel prices so high now, of course not as many people will buy one.'
He adds that another factor could be the lack of new models.
'Most of the popular models are not new, so there is less buying interest,' he says.
One model which has not seen as big a drop in sales as the rest of the market is the popular Honda CR-V. Authorised distributor Kah Motor says this is because of its 'good fuel economy'. For example, the two-litre model with its relatively small engine is 10 per cent more fuel efficient than the previous model.
As a result, total CR-V sales of 314 units in the first four months of 2008 are only 19.9 per cent lower than in the same period last year.
On the other hand, a bigger-capacity model like the 3.6-litre Volkswagen Touareg has seen monthly sales fall by half.
'At the moment, most people are staying away from cars with big engines,' says a salesman.
But not all big SUV models are in the same situation. BMW's X5 is bucking the trend, with 80 units sold in the first five months of this year. The premium German make's seven-seater SUV has 3.0 and 4.8-litre engines and costs between $250,000 and $350,000. It is a relatively new model as it was launched only in the second half of 2007.
Another luxury marque which is seeing rising sales is Land Rover. Its ruggedly handsome models include the stylish Range Rover Sport with a 4.2-litre supercharged V8 engine costing $380,000. In the first four months of this year, total sales were 28 units, up 180 per cent over the same period last year.
A spokesman for Vantage Automotive says its customers are attracted to Land Rover's strong brand heritage and its unique driving experience.
He adds: 'Fuel consumption has never been the major consideration of our target group.'