Small Cars - Bhutan

Bhutan

Revenue in the Small Cars market is projected to reach US$2m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -1.35%, resulting in a projected market volume of US$2m by 2029.
Small Cars market unit sales are expected to reach 109.0vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$15k.
From an international perspective it is shown that the most revenue will be generated in China (US$13,290m in 2024).

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

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Analyst Opinion

The Small Cars market in Bhutan has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Bhutan have shifted towards smaller cars due to their affordability, fuel efficiency, and ease of maneuverability in the country's mountainous terrain.

As a result, there has been a growing demand for small cars that offer good mileage and are suitable for both urban and rural areas. Additionally, customers in Bhutan also prioritize safety features and low maintenance costs when choosing a small car. Trends in the Small Cars market in Bhutan reflect the global shift towards electric and hybrid vehicles.

The government of Bhutan has been actively promoting the use of electric vehicles to reduce carbon emissions and dependence on fossil fuels. This has led to an increase in the availability and adoption of electric and hybrid small cars in the market. Furthermore, technological advancements in the automotive industry have resulted in the development of small cars with advanced features such as touchscreen infotainment systems, advanced safety systems, and connectivity options, which are highly sought after by customers in Bhutan.

Local special circumstances in Bhutan, such as the country's unique geography and infrastructure, have also contributed to the growth of the Small Cars market. Bhutan is a landlocked country with challenging road conditions, including steep slopes and narrow roads. Small cars are better suited to navigate these terrains and provide a smoother driving experience.

Additionally, the government of Bhutan has implemented policies to restrict the import of large vehicles, making small cars the preferred choice for many customers. Underlying macroeconomic factors, such as the country's economic growth and rising disposable incomes, have also played a role in the development of the Small Cars market in Bhutan. As the economy has grown, more people have been able to afford cars, leading to an increase in car ownership.

Additionally, the government's focus on promoting tourism has resulted in an influx of tourists, creating a demand for rental cars and further driving the growth of the Small Cars market. In conclusion, the Small Cars market in Bhutan is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards smaller, more fuel-efficient cars, the adoption of electric and hybrid vehicles, and the country's unique geography and infrastructure have all contributed to the development of the market.

With the government's continued support and the advancement of technology, the Small Cars market in Bhutan is expected to continue its growth trajectory in the coming years.

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).