Small Cars - Argentina

Argentina

Highlights

Revenue in the Small Cars market is projected to reach US$10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 56.63%, resulting in a projected market volume of US$90bn by 2029.
Small Cars market unit sales are expected to reach 563.0k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$53k.
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 Argentina has been experiencing significant growth in recent years.

Customer preferences: Argentinian consumers have shown a strong preference for small cars due to their affordability and fuel efficiency. With rising fuel prices and a desire for more sustainable transportation options, small cars have become a popular choice among consumers in Argentina. Additionally, the compact size of these vehicles makes them well-suited for navigating the busy streets and limited parking spaces in urban areas.

Trends in the market: One key trend in the Small Cars market in Argentina is the increasing demand for electric and hybrid vehicles. As the government and consumers become more aware of the environmental impact of traditional gasoline-powered cars, there has been a growing interest in electric and hybrid models. This trend is expected to continue as the government implements policies to promote the use of electric vehicles and as more charging infrastructure becomes available. Another trend in the market is the rise of online car sales platforms. With the increasing popularity of e-commerce in Argentina, consumers are now able to browse and purchase small cars online, making the buying process more convenient and efficient. This trend has been further accelerated by the COVID-19 pandemic, as consumers have turned to online platforms to avoid physical contact and adhere to social distancing measures.

Local special circumstances: Argentina has a unique set of circumstances that have contributed to the growth of the Small Cars market. The country has a large urban population, with many people living in densely populated cities. This has created a need for compact and maneuverable vehicles that can easily navigate through traffic and find parking. Additionally, the high cost of living and limited disposable income in Argentina have made small cars a more affordable option for many consumers.

Underlying macroeconomic factors: Several macroeconomic factors have influenced the development of the Small Cars market in Argentina. The country has experienced periods of economic instability and high inflation, which have led to a decrease in purchasing power for many consumers. As a result, small cars have become a popular choice due to their lower price tags and lower operating costs. Furthermore, government policies and incentives have played a role in the growth of the Small Cars market. The government has implemented measures to promote the production and sale of small cars, such as tax breaks and subsidies for manufacturers. These policies have helped to stimulate demand and encourage investment in the sector. In conclusion, the Small Cars market in Argentina is experiencing growth due to customer preferences for affordability and fuel efficiency, as well as trends towards electric and hybrid vehicles and online car sales platforms. The local special circumstances of a large urban population and limited disposable income have also contributed to the popularity of small cars. Additionally, underlying macroeconomic factors such as economic instability and government policies have influenced the development 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).