Small Cars - Algeria

Algeria

Highlights

Revenue in the Small Cars market is projected to reach US$319m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.37%, resulting in a projected market volume of US$359m by 2029.
Small Cars market unit sales are expected to reach 23.1k vehicles in 2029.
The volume weighted average price of Small 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$13bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Small Cars market in Algeria has been experiencing significant growth in recent years.

Customer preferences: Algerian customers have shown a strong preference for small cars due to their affordability, fuel efficiency, and compact size. Small cars are well-suited for navigating the crowded and narrow streets of Algerian cities. Additionally, the lower price point of small cars makes them more accessible to a wider range of consumers in Algeria.

Trends in the market: One of the key trends in the Small Cars market in Algeria is the increasing demand for electric and hybrid small cars. As environmental concerns and the need for sustainable transportation solutions grow, Algerian consumers are becoming more interested in eco-friendly vehicles. This trend is also driven by government initiatives and incentives to promote the adoption of electric and hybrid vehicles in the country. Another trend in the market is the rise of online car sales platforms. Algerian consumers are increasingly turning to online platforms to research and purchase small cars. This trend has been accelerated by the COVID-19 pandemic, which has led to a shift towards online shopping in various industries. Online car sales platforms provide convenience and a wide range of options for consumers, making it easier for them to find and compare small car models.

Local special circumstances: Algeria has a young and growing population, which contributes to the demand for small cars. Younger consumers, in particular, are attracted to the affordability and practicality of small cars. Additionally, the government of Algeria has implemented policies to support the local automotive industry, including the production of small cars. This has led to an increase in the availability and variety of small car models in the market.

Underlying macroeconomic factors: Algeria has experienced economic growth in recent years, which has contributed to the increasing purchasing power of consumers. This, combined with favorable financing options offered by banks and financial institutions, has made it easier for Algerian consumers to afford small cars. Additionally, the government's focus on diversifying the economy and reducing dependence on oil has led to investments in various sectors, including the automotive industry. These investments have created opportunities for local production and assembly of small cars in Algeria. In conclusion, the Small Cars market in Algeria is growing due to customer preferences for affordable and fuel-efficient vehicles, the increasing demand for electric and hybrid cars, the rise of online car sales platforms, the young and growing population, government support for the automotive industry, and favorable macroeconomic factors.

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).