Large Cars - Southern Africa

Southern Africa

Highlights

Revenue in the Large Cars market is projected to reach US$799m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.60%, resulting in a projected market volume of US$824m by 2029.
Large Cars market unit sales are expected to reach 19.8k vehicles in 2029.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$41k.
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 Southern Africa is experiencing steady growth and development in recent years. Customer preferences in the region are shifting towards larger cars due to several factors.

Firstly, the growing middle class in Southern Africa is aspiring to own larger and more luxurious vehicles as a symbol of status and success. Secondly, the region's road infrastructure has been improving, making it more convenient for consumers to drive larger cars. Additionally, the rugged terrain and long distances between cities in Southern Africa make larger cars more suitable for off-road adventures and comfortable long-distance travel.

Trends in the market reflect these changing customer preferences. Sales of large SUVs and crossovers have been on the rise, as they offer the combination of spaciousness, versatility, and ruggedness that consumers in the region desire. Luxury brands are also gaining popularity, as consumers seek higher-end features and premium driving experiences.

Furthermore, there is a growing demand for fuel-efficient large cars, as consumers become more conscious of environmental sustainability and rising fuel prices. Local special circumstances in Southern Africa influence the development of the Large Cars market. The region's unique geography and climate contribute to the demand for larger cars.

For example, the presence of national parks and game reserves attracts tourists who require larger vehicles for wildlife safaris. Moreover, the hot and dry climate in certain parts of Southern Africa necessitates cars with robust air conditioning systems and reliable performance. Underlying macroeconomic factors also play a role in the growth of the Large Cars market in Southern Africa.

Economic stability and rising disposable incomes have increased consumers' purchasing power, allowing them to afford larger and more expensive cars. Additionally, favorable financing options and low interest rates have made it easier for consumers to finance their large car purchases. Furthermore, the presence of automotive manufacturing plants and assembly plants in the region has led to increased availability and affordability of large cars.

In conclusion, the Large Cars market in Southern Africa is developing due to shifting customer preferences towards larger cars, trends in the market favoring SUVs and luxury brands, local special circumstances such as geography and climate, and underlying macroeconomic factors such as economic stability and increased purchasing power. As these factors continue to drive the market, the Large Cars segment in Southern Africa is expected to experience further growth and diversification in the coming years.

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).