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What is the reason for not having AWD SUV? Also keep in mind even though some car companies claim AWD, it's not on all the time unless it's a Subaru

I think it is the cost. Especially for a AWD configuration.

Given that the SUV (WEY VV7) I mentioned above is priced at 160.000-170.000Yuan, then 2WD makes sense. If it has a 4WD version, the price will likely reach to 200.000. If it has AWD, the price will get close to 250.000Yuan, along with other upgrades.

But, for me, if it is an SUV, it should have at least 4WD configuration and it must be longer than 4500mm and higher than 1800mm.

Honda has a China-only SUV, Avencier, which claims to have AWD and is priced at 300.000Yuan.

I'm thinking at an opposite direction. AWD doesn't bring real benefits in the daily usage, also it consumes more fuel than 2WD. I dare to say >99.99% of the driving (to most car owners in China) happened in well-paved roads, unless they want to drive to Tibet.

I think AWD means less oil consumption because it won't go 4WD unless the car feels it needs so? As far as I understand, AWD means that in most daily usage the car will in fact run on 2WD. Honda AWD Avencier (for China only) claims 7.5l/100km consumption.

Changan CS95 (seven-seat full) SUV has a optional configuration, you may switch between 2WD and 4WD and it claims 8.5l/100km consumption. But I read some users say it actually goes beyond 9L/100km, but I think it again depends on how people use. Because Changan CS95 also has economy driving mode.
 
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