Large Cars - Japan

Japan

Revenue in the Large Cars market is projected to reach US$8bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.40%, resulting in a projected market volume of US$8bn by 2029.
Large Cars market unit sales are expected to reach 229.8k 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 in China (US$106,200m in 2024).

Key regions: Worldwide, China, India, Germany, Europe

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Currency

Analyst Opinion

The Large Cars market in Japan has been experiencing steady growth over the past few years.

Customer preferences: Japanese consumers have traditionally favored smaller, more fuel-efficient vehicles due to the limited space and high population density in urban areas. However, there has been a shift in customer preferences towards larger cars in recent years. This can be attributed to several factors. Firstly, the aging population in Japan has led to an increase in demand for larger vehicles that offer more space and comfort. Older consumers often prioritize comfort and ease of entry and exit, making large cars an attractive option. Additionally, there is a growing trend among younger consumers to prioritize style and luxury, which has contributed to the increased demand for large cars.

Trends in the market: One of the key trends in the Large Cars market in Japan is the rise of hybrid and electric vehicles. The government has been actively promoting the adoption of eco-friendly vehicles through various incentives and subsidies. As a result, many automakers have introduced hybrid and electric models in the large car segment to cater to the growing demand for environmentally friendly vehicles. Another trend in the market is the increasing popularity of SUVs (Sport Utility Vehicles). SUVs offer a combination of spaciousness, versatility, and off-road capabilities, which appeals to a wide range of consumers. This trend is in line with the global shift towards SUVs in the automotive market.

Local special circumstances: Japan is known for its unique road and parking conditions. The narrow streets and limited parking spaces in urban areas make it challenging to maneuver large vehicles. However, automakers have been addressing this challenge by designing large cars with advanced parking assist systems and compact dimensions. These features make it easier for drivers to navigate tight spaces and park their vehicles.

Underlying macroeconomic factors: The Japanese economy has been experiencing slow but steady growth in recent years. This has had a positive impact on consumer confidence and disposable income, leading to increased spending on large cars. Additionally, low interest rates and favorable financing options have made it more affordable for consumers to purchase large cars. The government's efforts to stimulate domestic consumption have also contributed to the growth of the Large Cars market in Japan. In conclusion, the Large Cars market in Japan is experiencing growth due to changing customer preferences, including the demand for larger and more luxurious vehicles. The rise of hybrid and electric vehicles, as well as the popularity of SUVs, are key trends in the market. Special circumstances such as Japan's unique road and parking conditions have also influenced the design and features of large cars in the market. The underlying macroeconomic factors, including economic growth, low interest rates, and government initiatives, have further supported the growth of the market.

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).