Large Cars - Zambia

Zambia

Highlights

Revenue in the Large Cars market is projected to reach US$4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.28%, resulting in a projected market volume of US$4m by 2029.
Large Cars market unit sales are expected to reach 87.0vehicles in 2029.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$48k.
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 Zambia has been experiencing steady growth in recent years.

Customer preferences: Zambian customers have shown a growing preference for large cars due to several factors. Firstly, the increase in disposable income has allowed more people to afford these vehicles. As a result, there has been a shift in consumer preferences towards larger, more luxurious cars that provide comfort and status. Additionally, the poor state of the country's road infrastructure has made large cars more appealing, as they are seen as more durable and capable of navigating rough terrain.

Trends in the market: One of the key trends in the Large Cars market in Zambia is the increasing demand for SUVs. SUVs offer a combination of luxury, comfort, and off-road capabilities, making them popular among Zambian consumers. This trend is in line with the global market, where SUVs have been gaining popularity in recent years. Another trend in the market is the growing demand for electric and hybrid large cars. As the global push for sustainability and environmental consciousness increases, more consumers in Zambia are opting for eco-friendly vehicles. This trend is likely to continue as the government introduces incentives and policies to promote electric and hybrid cars in the country.

Local special circumstances: One of the unique circumstances in Zambia that has contributed to the growth of the Large Cars market is the country's vast and diverse landscape. With its numerous national parks and wildlife reserves, there is a need for vehicles that can navigate through different terrains. Large cars, especially SUVs, are well-suited for this purpose, making them a popular choice among tourists and locals alike. Additionally, the country's mining industry has also contributed to the demand for large cars, as workers require vehicles that can transport them to remote mining sites.

Underlying macroeconomic factors: The growth of the Large Cars market in Zambia can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed more people to afford large cars and contributed to the overall growth of the market. Additionally, the government's efforts to improve the country's infrastructure, including road networks, have made large cars more accessible and appealing to consumers. Lastly, the stability of the Zambian currency and low inflation rates have also played a role in boosting consumer confidence and encouraging spending on large cars. In conclusion, the Large Cars market in Zambia has been growing steadily due to increasing customer preferences for larger, more luxurious vehicles, as well as special circumstances such as the country's diverse landscape and the demand from the mining industry. These trends are supported by underlying macroeconomic factors such as economic growth, infrastructure development, and currency stability. As a result, the market is expected to continue its growth trajectory 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).