Passenger Cars - GCC

In 2024, the projected revenue in the Passenger Cars market in the GCC is set to reach US$25.2bn.
It is expected to experience an annual growth rate (CAGR 2024-2028) of 2.12%, resulting in a projected market volume of US$27.4bn by 2028.
Among all market segments, the largest one is SUVs, which is projected to reach a market volume of US$11.9bn in 2024.
Furthermore, the unit sales of Passenger Cars market in the GCC are expected to reach 925.40k vehicles by 2028.
The volume weighted average price of Passenger Cars market in the region is projected to be US$29.76k in 2024.
Looking at the international perspective, it is evident that United States is expected to generate the highest revenue, reaching US$558bn in 2024.
The passenger car market in the GCC is experiencing a surge in demand for luxury SUVs, driven by the region's affluent population and their preference for spacious and high-end vehicles.

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

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Analyst Opinion

The Passenger Cars market in GCC is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region play a crucial role in shaping the Passenger Cars market.

Luxury and high-performance vehicles are highly sought after by consumers in this region. The GCC countries have a high per capita income, and consumers are willing to spend more on premium cars that offer comfort, advanced features, and superior performance. Additionally, there is a growing interest in electric and hybrid vehicles, as consumers become more conscious of environmental sustainability.

Trends in the market also contribute to the growth of the Passenger Cars market in the GCC. One notable trend is the increasing demand for SUVs and crossovers. These vehicles offer a combination of luxury, spaciousness, and off-road capabilities, which resonate well with consumers in the region.

Moreover, there is a shift towards online car shopping, with consumers utilizing digital platforms to research, compare, and purchase vehicles. This trend is driven by the convenience and accessibility of online shopping, as well as the availability of virtual showrooms and test drives. Local special circumstances further impact the Passenger Cars market in the GCC.

The region has a young and growing population, which translates to a larger pool of potential car buyers. Additionally, the GCC countries have invested heavily in infrastructure development, including road networks and transportation systems. This infrastructure development enhances mobility and accessibility, making car ownership more desirable for individuals and families.

Underlying macroeconomic factors also play a significant role in the growth of the Passenger Cars market in the GCC. The region is known for its oil wealth, and fluctuations in oil prices can impact consumer spending and purchasing power. When oil prices are high, consumers have more disposable income, which can lead to increased car sales.

Conversely, when oil prices are low, consumer spending may be restrained, affecting the demand for passenger cars. In conclusion, the Passenger Cars market in the GCC is developing and growing due to customer preferences for luxury and high-performance vehicles, trends such as the popularity of SUVs and online car shopping, local special circumstances including a young population and infrastructure development, and underlying macroeconomic factors such as oil prices. These factors collectively contribute to the expansion and evolution of the Passenger Cars market in the GCC 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).