Minivans - Kenya

Kenya

The Minivans market in Kenya is projected to generate a revenue of US$3m in 2024.
It is expected to experience an annual growth rate (CAGR 2024-2028) of 15.68%, leading to a projected market volume of US$6m by 2028.
Furthermore, unit sales in the Minivans market are anticipated to reach 185.0vehicles units in 2028.
In 2024, the volume weighted average price of Minivans market in Kenya is expected to be US$30k.
When considering the international perspective, it is worth noting that China is forecasted to generate the highest revenue in the Minivans market, amounting to US$41,980m in 2024.
Minivans are gaining popularity in Kenya due to their versatility, fuel efficiency, and ability to navigate the country's diverse terrain.

Key regions: China, Worldwide, India, Europe, United Kingdom

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Analyst Opinion

The Minivans market in Kenya is experiencing significant growth and development.

Customer preferences: Customers in Kenya are increasingly opting for minivans due to their versatility, spaciousness, and affordability. Minivans provide ample seating capacity, making them ideal for large families or for use as public transportation vehicles. Additionally, minivans offer a combination of comfort, fuel efficiency, and cargo space, making them suitable for both personal and commercial use.

Trends in the market: One of the key trends in the Kenyan minivan market is the increasing demand for used minivans. This trend can be attributed to the relatively high cost of new minivans, which makes used vehicles more affordable for many customers. Furthermore, the availability of financing options for used vehicles has made it easier for customers to purchase pre-owned minivans. As a result, the used minivan market is witnessing a surge in sales. Another trend in the market is the growing popularity of minivans as ride-sharing vehicles. With the rise of ride-sharing platforms in Kenya, such as Uber and Bolt, many individuals are purchasing minivans to use as taxis. The spaciousness and seating capacity of minivans make them suitable for transporting multiple passengers, increasing the earning potential for ride-sharing drivers.

Local special circumstances: One of the factors contributing to the growth of the minivan market in Kenya is the country's expanding middle class. As more individuals and families join the middle class, there is an increased demand for vehicles that can accommodate larger families or offer transportation services. Minivans fulfill this need by providing ample space and seating capacity at a more affordable price point compared to larger vehicles such as SUVs. Additionally, the lack of an extensive public transportation system in Kenya has also contributed to the demand for minivans. Many individuals rely on minivans for their daily commute or for transportation within the city. The affordability and availability of minivans make them a popular choice for both personal and commercial use.

Underlying macroeconomic factors: The growth of the minivan market in Kenya can be attributed to several macroeconomic factors. Firstly, the country's stable economic growth has led to an increase in disposable income, allowing more individuals to afford minivans. Secondly, the government's efforts to improve infrastructure, such as road networks and public transportation systems, have also contributed to the demand for minivans. Furthermore, the availability of financing options and the ease of obtaining loans have made it easier for customers to purchase minivans. Financial institutions in Kenya offer competitive interest rates and flexible repayment options, making minivans more accessible to a wider range of customers. In conclusion, the Minivans market in Kenya is experiencing growth and development due to customer preferences for versatile and affordable vehicles. The increasing demand for used minivans and the popularity of minivans as ride-sharing vehicles are key trends in the market. The expanding middle class, lack of a comprehensive public transportation system, stable economic growth, and the availability of financing options are the local special circumstances and underlying macroeconomic factors driving the growth of the minivan market in Kenya.

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).