Large Cars - Brazil

Brazil

Highlights

Revenue in the Large Cars market is projected to reach US$4bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.37%, resulting in a projected market volume of US$4bn by 2029.
Large Cars market unit sales are expected to reach 111.8k vehicles in 2029.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$34k.
From an international perspective it is shown that the most revenue will be generated China (US$106bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Large Cars market in Brazil has been experiencing significant growth in recent years, driven by changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Brazil, customers have shown a strong preference for large cars due to their spaciousness, comfort, and prestige. Large cars are often associated with a higher social status and are seen as a symbol of success. Additionally, Brazilian consumers value durability and reliability, which are often found in larger vehicles. As a result, large cars have become increasingly popular among the middle and upper-middle classes in Brazil.

Trends in the market: One of the key trends in the Brazilian Large Cars market is the increasing demand for SUVs (Sport Utility Vehicles). SUVs offer a combination of spaciousness, comfort, and off-road capabilities, making them attractive to Brazilian consumers who often travel on uneven terrains. The popularity of SUVs has also been fueled by the growing number of families and individuals seeking adventure and outdoor activities. Another trend in the market is the rising demand for hybrid and electric large cars. As environmental concerns become more prominent, Brazilian consumers are becoming more conscious of their carbon footprint and are actively seeking greener alternatives. Hybrid and electric large cars offer lower emissions and better fuel efficiency, making them an appealing choice for environmentally conscious consumers.

Local special circumstances: Brazil is known for its vast and diverse landscape, which includes long distances between cities and regions. This geographical factor contributes to the preference for large cars, as they provide comfort and safety during long journeys. Additionally, Brazil has a growing middle class with increasing disposable income, which has led to a rise in demand for large cars as a status symbol.

Underlying macroeconomic factors: The Brazilian economy has been recovering from a period of recession, which has resulted in increased consumer confidence and spending power. As a result, consumers are more willing to invest in larger and more expensive vehicles. Additionally, favorable interest rates and financing options have made large cars more accessible to a wider range of consumers. In conclusion, the Large Cars market in Brazil is experiencing growth due to changing customer preferences, such as the demand for SUVs and greener alternatives. The local special circumstances, including Brazil's diverse landscape and growing middle class, also contribute to the popularity of large cars. Furthermore, the recovering economy and favorable macroeconomic factors have increased consumer confidence and spending power, driving the demand for large cars in Brazil.

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).