European sales of minicars were down by a third in 2020, which translates to nearly 400,000 fewer sales and means the segment loses market share as the overall market is down 24%. As a result, this segment now makes up 6.8% of the total European car market, down from 7.7% last year. And their share is expected to shrink further in coming years, as manufacturers are pulling out of this segment or switching their models to EV-only. This is a result of increasing costs to comply with stricter safety and especially emissions standards, which makes minicars nearly unprofitable, especially considering that for most models from European brands this is the only market.
Only two brands are responsible for 42% of the segment’s decline, as Opel/Vauxhall pulled out its two models Adam and Karl/Viva from the market in the second half of 2019, while Smart changed its strategy to EV-only at the end of 2020. The top-4 of the segment all outperform the overall market despite double digit declines. The Fiat Panda continues to lead the segment ahead of its sibling Fiat 500. The Italian duo actually manages to expand its share of the class from 29.6% in 2019 to 35.2%, thanks to the addition of mild hybrid versions of both as well as an all-new and all-electric 500e. The Toyota Aygo prolongs the podium position it took from the Volkswagen Up! in 2019, with the Renault Twingo in tow. Toyota is one of the few manufacturers still dedicated to the A-segment in Europe, and a third generation of the Aygo will be launched later in 2021. It will no longer be part of triplets, as the Japanese have bought the shares of the factory that PSA held, and the Peugeot and Citroën will get out of the small car business.
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