Mini Cars - South Korea

South Korea

Highlights

Revenue in the Mini Cars market is projected to reach US$2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.38%, resulting in a projected market volume of US$2bn by 2029.
Mini Cars market unit sales are expected to reach 121.5k vehicles in 2029.
The volume weighted average price of Mini Cars market in 2024 is expected to amount to US$16k.
From an international perspective it is shown that the most revenue will be generated China (US$7bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Mini Cars market in South Korea has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this development.

Customer preferences in South Korea have shifted towards smaller, more fuel-efficient vehicles in recent years. This is partly due to rising fuel prices and a growing awareness of environmental issues. Mini Cars, with their compact size and high fuel efficiency, have become increasingly popular among South Korean consumers.

Additionally, the younger generation in South Korea tends to prefer smaller cars that are easier to maneuver in crowded urban areas. Trends in the Mini Cars market in South Korea reflect the global trend towards electric vehicles. As the South Korean government has implemented policies to encourage the adoption of electric vehicles, the market for electric Mini Cars has grown significantly.

The availability of government subsidies for electric vehicles and the expanding charging infrastructure have made electric Mini Cars an attractive option for many South Korean consumers. Local special circumstances in South Korea also contribute to the growth of the Mini Cars market. The high population density in urban areas, such as Seoul, makes compact cars like Mini Cars more practical for navigating congested streets and finding parking.

Additionally, the high cost of living in South Korea, including expensive housing and education, has led many consumers to prioritize affordability when purchasing a car. Mini Cars, with their lower price tags compared to larger vehicles, are often seen as a more economical choice. Underlying macroeconomic factors also play a role in the development of the Mini Cars market in South Korea.

The country has a strong manufacturing industry, which includes several domestic automakers that produce Mini Cars. This has led to a wide range of options for South Korean consumers, with both domestic and international brands competing in the market. Additionally, the South Korean government has implemented policies to support the growth of the automotive industry, including tax incentives for car purchases and investments in research and development.

In conclusion, the Mini Cars market in South Korea is experiencing growth due to customer preferences for smaller, fuel-efficient vehicles, the global trend towards electric vehicles, local special circumstances such as high population density and affordability concerns, and underlying macroeconomic factors including a strong manufacturing industry and government support for the automotive sector.

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).