Medium Cars - South Africa

South Africa

Highlights

Revenue in the Medium Cars market is projected to reach US$1bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.19%, resulting in a projected market volume of US$1bn by 2029.
Medium Cars market unit sales are expected to reach 43.9k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$24k.
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 South Africa is experiencing significant growth and development.

Customer preferences: Customers in South Africa are increasingly opting for medium-sized cars due to their versatility and practicality. Medium cars offer a good balance between fuel efficiency and interior space, making them suitable for both urban and long-distance driving. Additionally, these vehicles often come equipped with advanced safety features and modern technology, which appeal to South African consumers who value convenience and safety.

Trends in the market: One of the key trends in the South African Medium Cars market is the increasing demand for electric and hybrid vehicles. As environmental concerns gain prominence, consumers are becoming more conscious of their carbon footprint and are seeking greener alternatives. Electric and hybrid medium cars offer lower emissions and reduced fuel consumption, making them an attractive option for eco-conscious buyers. The government's push for cleaner transportation and the availability of charging infrastructure further support the growth of electric and hybrid vehicles in the market. Another trend in the market is the rise of online car sales platforms. South African consumers are increasingly turning to online platforms to research, compare, and purchase medium-sized cars. The convenience and transparency offered by these platforms, along with the ability to easily access a wide range of models and prices, have made online car shopping a popular choice. This trend has been further accelerated by the COVID-19 pandemic, which has limited physical interactions and increased the reliance on digital channels.

Local special circumstances: South Africa has a unique automotive landscape due to its historical preference for larger vehicles such as SUVs and bakkies (pickup trucks). However, the growing popularity of medium-sized cars indicates a shift in consumer preferences. This shift can be attributed to factors such as increasing urbanization, rising fuel prices, and changing lifestyle patterns. As more South Africans move to urban areas and face congested roads, medium cars offer a more practical and economical solution for daily commuting.

Underlying macroeconomic factors: The South African Medium Cars market is influenced by various macroeconomic factors. The country's economic growth, inflation rates, and exchange rates play a significant role in determining consumer purchasing power and affordability. Additionally, government policies and regulations, such as import tariffs and incentives for electric vehicles, can impact the availability and cost of medium-sized cars in the market. In conclusion, the Medium Cars market in South Africa is experiencing growth and development driven by customer preferences for versatile and practical vehicles, the increasing demand for electric and hybrid cars, the rise of online car sales platforms, and the unique local circumstances of the South African automotive landscape. These trends are further influenced by underlying macroeconomic factors, highlighting the dynamic nature 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).