The decision, however, underscores the rapidly changing preferences of Australian car buyers, with Peugeot today announcing the local terminaton of its 508 sedans and waggons models. It’s a decision made as sales of traditional passenger cars fall out of favour in favour of SUVs, with popular models like the Toyota RAV4 and Mitsubishi Outlander dominating the sales charts.

That its 508 lineup is being axed by the French automaker reflects an even broader trend in the Australian automotive market: SUVs continue to grab a larger share of the market at the expense of cars like sedans and waggons. The result has been especially pronounced in Melbourne where SUVs offer the versatility and higher driving position most appealing to urban families and professionals.

The switch by Peugeot is not unique, as a number of other manufacturers have too been reassessing their own product portfolios in response to shifting consumer behaviour. Over the past decade, passenger cars in the Australia market have faded into obscurity and seen a steady decline in popularity, as SUVs now take the lion’s share in new vehicle sales.

Industry analysts say the trend is being driven by an impression of being more practical and safe with SUVs, as well as the rise of outdoor lifestyles in Melbourne. SUVs offer the higher ground clearance and spacious interiors making them a great option for commuting around the city, as well as visiting favourite destinations like the Yarra Valley or The Great Ocean Road.

The discontinuation of the Peugeot 508 will disappoint some enthusiasts who appreciated its thin design and European driving dynamics but it seems the automaker will instead redirect it’s efforts into widening its SUV offer to meet market demands. It follows Peugeot’s global direction, with increased investment in crossover and SUV models.

Other European brands too are off sedans and waggons, which isn’t just the case with Peugeot. The effect of this has resulted in Melbourne, and throughout Australia, automotive dealers have been reshaping their showroom spaces to accommodate more and more SUV models.

As Melbourne consumers lose one less option in a declining mid-size sedan and waggon market, the Peugeot 508 has become one less car for the city. However, SUV naming presents too great a temptation, as there are just too many to choose from, on various price points and sizes, so buyers are still not short of options to fit whatever needs or preference they have.

SUVs have also dominated the Australian market too, and has had implications on the gloabal automotive industry, for instance, manufacturing decisions, marketing strategies. Just like in countless other parts of the foreign and domestic automotive industries, the recent closure of domestic car manufacturing has allowed importers to be a quick adaption of their product offerings to fill the void left by SUV demand.

In an era where the city is growing and developing, assistance from SUVs is likely to be endless due to changing lifestyles; the provision of urban sprawl and the way of thinking that SUVs are better and versatile. On the one hand this shift allows automakers the opportunity to make SUVs that meet the needs of Australian consumers, but on the other hand it poses challenges to automakers in that it comes with the threat of losing sales if consumers are not able to find SUVs that will fit their needs, along with the danger of making cars that are too polluting and not efficient enough on fuel to appeal to the fuel conscious environmentally friendly consumers.

Naturally, this is the response by the automotive industry to this trend: As SUV models are electrifying, especially hybrid and fully electric SUV’s that are found in the market. Both popular SUVs and electrification are set to converge in Melbourne and worldwide, driving the future of mobility for consumers who want functional and green vehicle.