By: Blair Qualey
One only has to gaze out the window while driving to see that the Sports Utility Vehicle (SUV) has increasingly become the vehicle of choice for Canadian drivers, but now a new trend is reshaping the market: compact and subcompact SUVs, which are seeing some of the most significant sales growth in the country. Recent data shows that these smaller, more efficient vehicles are outpacing larger SUVs and sedans in sales volume, signaling a shift in consumer preference toward practicality, affordability, and fuel efficiency.
But why are Canadian drivers purchasing these vehicles? There are several factors driving this surge in demand for smaller SUVs, including rising fuel prices, increased urbanization, and a growing focus on sustainability. The vehicles offer the versatility and cargo space of their bigger brothers while maintaining fuel efficiency closer to that of a sedan, and this combination makes them particularly attractive to drivers who need the benefits of an SUV without the added costs of owning and operating a larger vehicle. And when it comes to driving and parking in dense city centers like Vancouver and Victoria, smaller SUVs may strike a balance between convenience and functionality.
But with so much of our province composed of winding mountain highways and forestry roads, compact SUVs also appeal to British Columbians thanks to their all-weather performance and adaptability to our unique road and weather conditions. Most models offer all-wheel drive, which is paramount to safely navigating winter driving in mountainous regions or along roadways prone to sudden weather changes. Many models also come with higher ground clearance than sedans, making them a better choice for weekend adventures, whether heading to the hill for a day on the slopes or exploring BC’s vast network of provincial parks.
Automakers have responded to this shift in demand by equipping compact SUVs with cutting-edge technology and enhanced safety features that make them even more attractive to consumers. Advanced driver-assistance systems such as lane departure warnings, adaptive cruise control, and automatic emergency braking are attractive to drivers, and modern infotainment systems, smartphone connectivity, and flexible cargo space make these vehicles ideal for families, commuters, and outdoor enthusiasts alike.
Canadian auto dealers are already feeling the impact of this shift, citing growing demand for compact SUVs across the province. Adding to this is the trend toward electrification, which is making compact SUVs an even more appealing option thanks to more hybrid and fully electric models entering the market. As electric vehicle infrastructure continues to expand across BC, compact electric SUVs are expected to gain even more traction among consumers looking for a greener alternative without sacrificing space or capability.
The rise of smaller SUVs in Canada’s automotive market reflects a broader trend of balancing practicality, performance, and efficiency. As automakers continue to innovate, BC drivers can expect even more choices designed to meet the demands of modern driving. And we here at the New Car Dealers Association of BC are here to help and advise, keeping our consumers informed about industry trends and helping drivers make the best decisions for their transportation needs.
You can check out some of the hottest new models yourself at the 2025 Vancouver International Auto Show! Running from March 19-23 at the Vancouver Convention Centre, this year’s show will feature an impressive lineup of vehicles, including the latest compact SUVs and electric models that are shaping the future of driving.
Don’t miss out! Get your tickets today at Vancouver International Auto Show or contact [email protected] or call us at 604-214-9964 for more details.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]
