Medium Cars - Southern Africa

Southern 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 47.1k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$25k.
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 Southern Africa is experiencing steady growth, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Southern Africa, customers have shown a strong preference for medium cars due to their versatility and practicality. These vehicles offer a balance between fuel efficiency, affordability, and comfort, making them an attractive choice for both urban and rural areas. Additionally, medium cars are often perceived as a status symbol, further driving their demand in the region.

Trends in the market: One of the key trends in the medium cars market in Southern Africa is the increasing demand for electric and hybrid vehicles. As environmental consciousness grows and governments implement stricter emission regulations, consumers are becoming more inclined towards eco-friendly options. This trend is expected to continue as automakers introduce more electric and hybrid models to the market. Another trend in the market is the integration of advanced technology features in medium cars. Southern African consumers are increasingly seeking vehicles equipped with features such as touchscreen infotainment systems, smartphone integration, advanced safety systems, and driver-assistance technologies. Automakers are responding to this demand by incorporating these features into their medium car models.

Local special circumstances: Southern Africa has unique geographical and infrastructural characteristics that influence the medium cars market. The region's diverse landscapes, including both urban and rural areas, require vehicles that can navigate different terrains. Medium cars are well-suited for these conditions, offering a balance between size and performance. Furthermore, the lack of well-developed public transportation systems in many parts of Southern Africa makes personal vehicle ownership a necessity for many individuals and families. This, coupled with the affordability and practicality of medium cars, contributes to their popularity in the region.

Underlying macroeconomic factors: The medium cars market in Southern Africa is also influenced by underlying macroeconomic factors. Economic growth, rising disposable incomes, and improving living standards are driving the demand for personal vehicles, including medium cars. As the region's economies continue to develop, more consumers are able to afford and maintain medium cars, leading to increased sales. Additionally, government policies and incentives play a role in shaping the medium cars market. Governments in Southern Africa are implementing measures to promote the automotive industry, such as tax incentives for vehicle manufacturing and importation. These policies stimulate the market and encourage automakers to invest in the region, leading to a wider range of medium car options for consumers. In conclusion, the medium cars market in Southern Africa is growing steadily due to customer preferences for versatile and practical vehicles, trends such as the demand for electric and hybrid models and advanced technology features, local special circumstances including diverse landscapes and the need for personal transportation, and underlying macroeconomic factors such as economic growth and government policies.

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).