Small Cars - Armenia

Armenia

Highlights

Revenue in the Small Cars market is projected to reach US$5m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.07%, resulting in a projected market volume of US$5m by 2029.
Small Cars market unit sales are expected to reach 374.0vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$14k.
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 Armenia has been experiencing significant growth in recent years.

Customer preferences: Armenian customers have shown a strong preference for small cars due to their affordability, fuel efficiency, and maneuverability in the country's narrow and congested streets. Small cars are also popular among younger drivers and urban dwellers who value compact vehicles that are easy to park and navigate through tight spaces. Additionally, the rising cost of living and limited disposable income have made small cars a practical choice for many Armenian consumers.

Trends in the market: One of the key trends in the Small Cars market in Armenia is the increasing demand for electric and hybrid vehicles. As the country strives to reduce its carbon footprint and promote sustainable transportation, more consumers are opting for eco-friendly small cars. The availability of government incentives and subsidies for electric and hybrid vehicles has further fueled this trend. Moreover, advancements in battery technology and the expansion of charging infrastructure have made electric and hybrid small cars a viable option for Armenian consumers. Another trend in the market is the growing popularity of compact SUVs. While traditionally small cars have been associated with hatchbacks and sedans, the demand for compact SUVs has been on the rise. These vehicles offer the practicality and fuel efficiency of small cars combined with the higher driving position and rugged appeal of SUVs. The versatility and spaciousness of compact SUVs have attracted a wider range of customers, including families and outdoor enthusiasts.

Local special circumstances: Armenia's challenging terrain and sometimes harsh weather conditions have contributed to the demand for small cars with good handling and traction capabilities. Compact vehicles with efficient engines and reliable performance are preferred by Armenian drivers who need to navigate through mountainous areas and snowy roads. Additionally, the country's limited parking spaces and narrow streets make small cars more practical and convenient for urban dwellers.

Underlying macroeconomic factors: The growth of the Small Cars market in Armenia can be attributed to several macroeconomic factors. The country has experienced stable economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, more Armenians can afford to purchase and maintain small cars. Additionally, the availability of financing options and affordable loan rates have made it easier for consumers to buy small cars. Furthermore, the government's efforts to improve the country's infrastructure, including road networks and public transportation, have also influenced the Small Cars market. As the overall transportation system becomes more efficient, consumers are more inclined to choose small cars as their primary mode of transportation. In conclusion, the Small Cars market in Armenia is witnessing growth due to customer preferences for affordable and fuel-efficient vehicles, the increasing demand for electric and hybrid cars, the popularity of compact SUVs, local special circumstances such as challenging terrain and limited parking spaces, and underlying macroeconomic factors such as stable economic growth and improved infrastructure.

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).