Medium Cars - Algeria

Algeria

Highlights

Revenue in the Medium Cars market is projected to reach US$915m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.57%, resulting in a projected market volume of US$989m by 2029.
Medium Cars market unit sales are expected to reach 51.8k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$19k.
From an international perspective it is shown that the most revenue will be generated China (US$89bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Medium Cars market in Algeria has been experiencing significant growth in recent years, driven by changing customer preferences and favorable macroeconomic factors.

Customer preferences: Algerian consumers have shown a growing preference for medium-sized cars due to their versatility and affordability. Medium cars offer a balance between fuel efficiency, comfort, and performance, making them suitable for both city driving and long-distance travel. Additionally, the availability of a wide range of models and brands in the medium car segment has provided consumers with ample choice to meet their specific needs and preferences.

Trends in the market: One notable trend in the Algerian medium car market is the increasing demand for eco-friendly and fuel-efficient vehicles. With rising awareness about environmental issues and the need for sustainable transportation solutions, consumers are opting for medium cars that offer lower carbon emissions and better fuel economy. This trend is expected to continue as automakers introduce more hybrid and electric models to the market. Another trend in the market is the growing popularity of advanced safety features in medium cars. Algerian consumers are becoming more conscious about safety and are willing to invest in vehicles that offer advanced safety technologies such as lane departure warning, adaptive cruise control, and automatic emergency braking. This trend is driven by the desire to enhance the overall driving experience and ensure the well-being of passengers.

Local special circumstances: Algeria's automotive market is heavily influenced by government policies and regulations. The government has implemented measures to promote domestic manufacturing and reduce dependence on imports. As a result, there has been a significant increase in the production of medium cars within the country. This has not only created job opportunities but also led to a wider availability of locally manufactured medium cars at competitive prices.

Underlying macroeconomic factors: The growth of the medium car market in Algeria can be attributed to favorable macroeconomic factors. The country has experienced steady economic growth, which has resulted in an increase in disposable income and improved purchasing power among consumers. This, coupled with low interest rates and easy financing options, has made medium cars more affordable and accessible to a larger segment of the population. Furthermore, the government's focus on infrastructure development, including the expansion of road networks and improvement of transportation systems, has contributed to the growth of the medium car market. These infrastructure investments have made it easier for consumers to travel and commute, increasing the demand for medium cars as a convenient mode of transport. In conclusion, the Medium Cars market in Algeria is witnessing growth due to changing customer preferences, including a preference for eco-friendly vehicles and advanced safety features. The market is also influenced by local special circumstances, such as government policies promoting domestic manufacturing. Favorable macroeconomic factors, including steady economic growth and infrastructure development, have further contributed to the growth of the market.

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).