The production of small cars in Finland is declining significantly, with models like the Ford Fiesta and Volkswagen Polo becoming increasingly rare on the market, though some may transition to electric versions.
In Finland's automotive market, the decline of B-segment small cars is stark, with traditional models like the Ford Fiesta, Volkswagen Polo, Kia Rio, and Dacia Sandero becoming harder to find. Over the past twenty years, the share of these cars among new sales has plummeted from 15% to just 7%. This dramatic shift is attributed to manufacturers pivoting towards larger vehicles, which provide better profit margins, while the cost of electric technology development weighs heavily on their production strategies.
Despite the current downturn, there is a gradual introduction of electric versions of small cars, with some models priced as low as €25,000. This shift is underscored by the rising costs of gasoline and hybrid models, pushing their prices closer to the electric counterparts. This pricing dynamic is anticipated to reshape consumer preferences and influence overall market trends as buyers seek cost-effective alternatives that meet new environmental standards.
The market is also seeing a shift in consumer interest towards B-SUVs, a higher-bodied segment that mirrors the aesthetics of SUVs while retaining compact dimensions. As the market share of these small SUVs grows, traditional small cars continue to face challenges in relevance and sales, leading to questions about the future of the B-segment in the automotive industry.
