Peugeot is evaluating the possibility of reintroducing an estate (station wagon) model, potentially as a successor to the discontinued 508 estate, as it seeks to diversify beyond its current focus on hatchbacks and SUVs. The decision reflects a broader industry shift, where automakers are re-evaluating niche segments in the face of growing SUV dominance.
The Rise and Fall of the 508 Estate
The Peugeot 508, launched in 2010, aimed to compete with established rivals like the Volkswagen Passat and Volvo S60/V60. While it offered both fastback and estate body styles, sales declined, particularly in the UK, where the second generation managed only 7,000 units before being discontinued in late 2024. Production ceased entirely in spring 2025 with no immediate plans for a third generation.
The decline of the estate car is directly linked to the explosive growth of SUVs. Consumers increasingly favor the higher ride height, perceived versatility, and bolder styling of SUVs over traditional wagons.
Exploring Alternatives to SUVs
Peugeot CEO Alain Favey acknowledges the saturation of the SUV market and suggests that automakers are actively searching for alternatives. “Everybody… is bringing into the market very nice SUVs… You feel that something else has to come in the future.” The company isn’t ruling out a return to the estate segment, despite previous demand issues.
The key challenge is finding a viable business case. Favey notes that the original 508 was dropped due to insufficient sales, but Peugeot is open to revisiting the idea if a compelling market opportunity emerges.
Potential Competitors and Future Models
The market for traditional estates has shrunk, but recent launches from brands like BYD (Seal 6), Toyota (bZ4X Touring), and Subaru (E-Outback) demonstrate continued demand for this body style.
Peugeot isn’t committing to a station wagon specifically, but it’s exploring “something different” that could fill the gap between SUVs and more conventional vehicles. The company will proceed only if it can identify a “right recipe” for success in this segment.
Peugeot is carefully weighing its options, recognizing that the future of its lineup must extend beyond the current SUV trend. Whether this translates into a direct 508 successor or a new vehicle entirely remains to be seen, but the door is open.
