Medium Cars - Mongolia

Mongolia

Revenue in the Medium Cars market is projected to reach US$6m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -1.17%, resulting in a projected market volume of US$6m by 2029.
Medium Cars market unit sales are expected to reach 269.0vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$23k.
From an international perspective it is shown that the most revenue will be generated in China (US$89,320m in 2024).

Key regions: India, United States, Germany, China, Europe

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Analyst Opinion

The Medium Cars market in Mongolia has been experiencing significant growth in recent years. Customer preferences have shifted towards medium-sized cars due to their versatility and practicality. Additionally, the local special circumstances and underlying macroeconomic factors have contributed to the development of this market.

Customer preferences: In Mongolia, customer preferences have shifted towards medium-sized cars for several reasons. Firstly, medium-sized cars offer a balance between fuel efficiency and space, making them suitable for both urban and rural areas. Mongolia has a diverse landscape, with both urban centers and vast rural areas, and medium-sized cars are able to navigate these different terrains effectively. Secondly, medium-sized cars provide a comfortable driving experience for both the driver and passengers. With advancements in technology, medium-sized cars now offer a range of features such as advanced safety systems, entertainment options, and comfortable seating, making them an attractive choice for consumers.

Trends in the market: One of the key trends in the Medium Cars market in Mongolia is the increasing demand for electric and hybrid vehicles. As the country aims to reduce its carbon footprint and promote sustainable transportation, there has been a growing interest in electric and hybrid cars. This trend is reflected in the market, with an increasing number of medium-sized electric and hybrid cars available for purchase. Another trend in the market is the rise of online car sales platforms. With the increasing popularity of e-commerce in Mongolia, consumers are now able to browse and purchase medium-sized cars online. This trend has made it easier for consumers to compare prices and features, leading to increased competition among car dealerships.

Local special circumstances: Mongolia's harsh climate and challenging road conditions have influenced the development of the Medium Cars market. The extreme winters and unpaved roads in some areas require vehicles that are capable of handling these conditions. Medium-sized cars, with their higher ground clearance and sturdy build, are better suited for these conditions compared to smaller vehicles.

Underlying macroeconomic factors: The Medium Cars market in Mongolia has also been influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed more consumers to afford medium-sized cars, driving the demand in the market. Furthermore, the government has implemented policies to support the automotive industry, such as reducing import taxes on cars. This has made medium-sized cars more affordable for consumers, further driving the growth of the market. In conclusion, the Medium Cars market in Mongolia has been developing due to customer preferences for versatile and practical vehicles, the rise of electric and hybrid cars, the growth of online car sales platforms, the local special circumstances of Mongolia's climate and road conditions, and the underlying macroeconomic factors such as economic growth and government policies.

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).