Passenger Cars - Asia

Asia

Revenue in the Passenger Cars market is projected to reach US$904.9bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.88%, resulting in a projected market volume of US$945.2bn by 2029.
The market's largest segment is SUVs with a projected market volume of US$362.5bn in 2024.
Passenger Cars market unit sales are expected to reach 38.29m vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to US$24.68k in 2024.
With a vehicle unit sales share of 40.9% in 2024, Other is expected to have one of the highest market share in the selected region.
The value market share of the make Other in the selected region is expected to stand at 37.0% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$605bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Asia is experiencing significant growth and development. Customer preferences are shifting towards more fuel-efficient and environmentally friendly vehicles. Additionally, the rise of urbanization and increasing disposable income in the region are driving the demand for passenger cars.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards more fuel-efficient and environmentally friendly vehicles. This can be attributed to growing concerns about climate change and the need for sustainable transportation options. As a result, there has been an increase in the demand for electric and hybrid cars in the Asian market. Customers are also looking for advanced safety features and technological innovations in their vehicles.

Trends in the market: One of the key trends in the Asian passenger car market is the rise of SUVs and crossover vehicles. These vehicles offer a combination of spaciousness, versatility, and off-road capabilities, which are appealing to customers in the region. The popularity of SUVs can be attributed to their perceived safety, comfort, and status symbol. Another trend in the market is the increasing adoption of autonomous driving technology. Asian countries, such as China, Japan, and South Korea, are investing heavily in research and development of autonomous vehicles. This is driven by the desire to improve road safety, reduce traffic congestion, and enhance the overall driving experience. The introduction of self-driving cars is expected to revolutionize the passenger car market in the region.

Local special circumstances: Asia is a diverse region with varying local circumstances that influence the passenger car market. For example, in countries like China and India, there is a growing middle class with increasing disposable income. This has led to a surge in car ownership and demand for passenger cars. On the other hand, countries like Japan and South Korea have a mature automotive industry and are known for their technological advancements. These countries are focused on developing innovative and high-quality vehicles to cater to the demands of their domestic and global markets.

Underlying macroeconomic factors: The growth of the passenger car market in Asia can also be attributed to underlying macroeconomic factors. The region has experienced rapid urbanization, with a significant proportion of the population moving to cities. This has led to increased demand for personal transportation. Additionally, rising disposable income levels have made cars more affordable for a larger segment of the population. Furthermore, government policies and regulations play a crucial role in shaping the passenger car market in Asia. Many countries in the region have implemented measures to promote the adoption of electric vehicles, such as tax incentives and subsidies. These policies have encouraged customers to switch to more sustainable transportation options. In conclusion, the Passenger Cars market in Asia is witnessing significant growth and development. Customer preferences are shifting towards more fuel-efficient and environmentally friendly vehicles, while trends such as SUVs and autonomous driving technology are shaping the market. Local special circumstances, such as the growing middle class and technological advancements, along with underlying macroeconomic factors like urbanization and rising disposable income, are driving the demand for passenger cars in the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).