Medium Cars - Philippines

Philippines

Revenue in the Medium Cars market is projected to reach US$645m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.31%, resulting in a projected market volume of US$734m by 2028.
Medium Cars market unit sales are expected to reach 31.0k vehicles in 2028.
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$90bn in 2024).

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

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Analyst Opinion

The Medium Cars market in Philippines has been experiencing significant growth in recent years.

Customer preferences: One reason for this growth is the changing preferences of customers in the country. As the economy has been expanding and disposable incomes have been rising, more people are able to afford medium-sized cars. Additionally, customers in the Philippines are increasingly looking for vehicles that offer both comfort and fuel efficiency. Medium cars are able to meet these requirements, making them a popular choice among consumers.

Trends in the market: Another trend in the Medium Cars market in Philippines is the increasing demand for eco-friendly vehicles. With growing concerns about climate change and environmental sustainability, many customers are opting for cars that have lower carbon emissions and better fuel efficiency. Medium cars, with their smaller engines and lighter bodies, are often more fuel efficient compared to larger vehicles. This trend is likely to continue as more customers prioritize environmental considerations in their purchasing decisions.

Local special circumstances: The geography and infrastructure of the Philippines also play a role in the development of the Medium Cars market. The country is made up of numerous islands, many of which have limited road infrastructure. This makes smaller and more maneuverable vehicles like medium cars a practical choice for navigating the country's roads. Additionally, the high population density in urban areas can make parking and maneuvering larger vehicles challenging, further driving the demand for medium-sized cars.

Underlying macroeconomic factors: The overall economic growth in the Philippines has had a positive impact on the Medium Cars market. As the economy expands, more people have the financial means to purchase cars. Additionally, favorable government policies and low interest rates have made it easier for consumers to obtain car loans, further fueling the demand for medium cars. The growing middle class in the country is also contributing to the market growth, as more people are able to afford medium-sized cars as a symbol of status and mobility. In conclusion, the Medium Cars market in Philippines is growing due to changing customer preferences, increasing demand for eco-friendly vehicles, local infrastructure considerations, and favorable macroeconomic factors. As the economy continues to expand and consumer preferences evolve, the market for medium cars is expected to continue its upward trajectory in the coming years.

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).