Why station wagons are poised to make electric transition

The belated start of full-electric station wagon launches gives hope that a flagging sector can regain market share in Europe as automakers focus on their improved aerodynamics compared with SUVs.

Wagon sales increased 7.6 percent in the first quarter, led by growth from key models such as the Skoda Octavia and Volkswagen Passat, but the recovery lagged the overall market's rise of 17 percent, cutting their market share.

Wagon sales stood at 240,808 in the first three months of the year, according to figures from market researcher Dataforce, giving them a share of 7.4 percent, down from the 8.8 percent share they took in 2019.

Wagons remain a key model for many automakers in both premium and volume segments. In many cases they match or outsell their hatchback or sedan siblings, as many customers are willing to pay a small premium to get the extra trunk space.

The best-selling wagon in Europe remains the Skoda Octavia compact, with the body style accounting for 75 percent of all Octavia sales.

The second-place Volkswagen Passat is only sold as a wagon after VW cut production of the midsize sedan variant. The next-generation model will remain wagon-only when sales start in December, VW has said.

The new Passat was developed by Skoda alongside the brand's replacement for the Superb wagon and hatchback and will be built on the same line as the Superb derivatives in Bratislava, Slovakia.

Within the top 10, the wagon versions either outsell or match the sales of their sedan or hatchback equivalents in seven cases. For example, 80 percent of the Audi A4s sold in the first quarter were the Avant wagon version, while 71 percent of the BMW 3 Series units sold were wagons (see table, below).

The wagon choice has shrunk in recent years as automakers cancel models. In the volume midsize segment recent exits include the Ford Mondeo, Renault Talisman and Kia Optima.

The small wagon segment meanwhile has ceased altogether after Skoda stopped production of the Fabia wagon in December and reversed a previous decision to build a replacement.

Skoda was the last automaker building a small wagon after Renault ended production of the Clio wagon.

However, interest is returning as automakers look to provide the practicality of an SUV but without the increased aerodynamic drag.

"Gone are the days of big SUVs because they are a nightmare on CO2," Peugeot CEO Linda Jackson said at the recent Financial Times Future of the Car conference.

Peugeot has seen strong interest in the new wagon version of the 308, which sold 12,028 in the first three months, accounting for 46 percent of all 308 sales.

Peugeot will become one of the first to launch an electric wagon after developing an EV version of the 308 due later this year.

Also, from Stellantis will be the related Opel/Vauxhall Astra electric wagon, due in the autumn after making its public debut at the Munich auto show in September. Both models are also available with gasoline, diesel and plug-in hybrid drivetrains.

So far, the Chinese-built MG5 is the only electric wagon variant available in Europe as rivals have focused instead on electric SUVs, sedans and, to a lesser extent, hatchbacks.

However, more electric wagons are in the pipeline. Next year Volkswagen is due to launch the wagon version of the ID7 electric sedan, previewed in 2019 as the Space Vizzion.

The model will continue the theme of efficient aerodynamics touted first by the ID7 and will use the same MEB electric platform.

Skoda earlier this year announced that it, too, will compete for EV wagon sales with the launch of a midsize model so far just badged the Estate.

"We can't just have SUVs. We also need estate cars [wagons]," Oliver Stefani, head of design for Skoda, told Automotive News Europe at the unveiling of a range of full-size silhouettes previewing the brand's new electric lineup. The electric wagon will launch in 2026.

Chinese premium automaker Nio later this year will launch a wagon version of the ET5 midsize sedan, which will be badged the Tourer in Europe.

BMW will also bring a premium electric wagon to market when it launches the i5 Touring version of the electric 5 Series large sedan next spring. That will be followed by Audi's A6 E-tron Avant on the Audi/Porsche Premium Platform Electric (PPE) architecture, which has previously been announced for 2024.

A wagon version of an electric A6 will be key for Audi – in the first three months the Avant wagon accounted for 77 percent of all A6 sales, according to Dataforce.

German automakers are more motivated than most rivals to roll out electric wagons given the importance of the body style in their home market.

Germany is by far the largest market for wagons in Europe, accounting for almost 100,000 sales in the first three months, or 40 percent of the total (see table, below).

Germany's appetite for wagons is double that of Europe in total, accounting for 14 percent of car sales in the period against 7.4 percent across Europe.

Skoda's popularity in its Czech home market boosted the wagon share there to 17 percent of total vehicle sales in the first three months, putting it ahead of Sweden – traditionally Europe's biggest consumer of wagons judged by share of total sales.

Sweden's love of wagons has diminished as Volvo focuses more on SUVs. The wagon share there fell to 15 percent for the first three months, down from 29 percent in the first 10 months of 2020, the last time Automotive News Europe did an analysis of the segment.

Sales of Volvo's V60 midsize wagon fell 28 percent across Europe in the first quarter to 5,215, while those of the V90 large wagon slid 38 percent to 2,008.

Automakers are experimenting with ways to include the space of a more traditional wagons with other body styles. For example, Citroen says its Chinese-built C5 X "combines the elegance of a saloon [sedan], the dynamism of an estate car and the elevated driving position of an SUV."

Meanwhile, the Dacia Jogger leaned on SUV styling to make what is essentially a wagon version of the Sandero. Car buyers might still be drawn to SUVs, but the lower-slung body shape of a wagon brings efficiency advantages in both combustion engine cars and EVs that neither automakers nor customers -- particularly business fleet operators -- will be able to ignore.