Small Cars - Cambodia

Cambodia

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 0.86%, resulting in a projected market volume of US$2m by 2029.
Small Cars market unit sales are expected to reach 134.0vehicles 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 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 Cambodia has been experiencing significant growth in recent years.

Customer preferences: Cambodian customers have shown a strong preference for small cars due to their affordability and fuel efficiency. With limited disposable income, many Cambodians are looking for cost-effective transportation options that also offer good fuel economy. Small cars fit this criteria perfectly, making them a popular choice among consumers in the country.

Trends in the market: One of the key trends in the Small Cars market in Cambodia is the increasing demand for electric and hybrid vehicles. As the government and environmental organizations promote sustainability and green initiatives, more Cambodians are becoming aware of the benefits of electric and hybrid cars. This trend is expected to continue as the infrastructure for charging stations improves and the cost of electric vehicles decreases. Another trend in the market is the rise of ride-sharing services. Companies like Grab and PassApp have gained popularity in Cambodia, leading to an increased demand for small cars that are suitable for urban driving and can navigate through congested traffic. This trend has also been fueled by the growing number of young professionals and urban dwellers who prefer using ride-sharing services rather than owning a car.

Local special circumstances: Cambodia's road infrastructure is still developing, with many roads in rural areas being unpaved. This has led to a preference for small cars that are more maneuverable and can handle rough terrain. Additionally, the small size of these cars makes them easier to park in crowded urban areas, which is a significant advantage in cities like Phnom Penh.

Underlying macroeconomic factors: Cambodia has experienced steady economic growth in recent years, leading to an increase in disposable income for many Cambodians. This has resulted in a growing middle class with more purchasing power, driving the demand for small cars. Furthermore, the government has implemented policies to promote the automotive industry, including reducing import taxes on small cars. These factors have contributed to the overall growth of the Small Cars market in Cambodia. In conclusion, the Small Cars market in Cambodia is developing due to customer preferences for cost-effective and fuel-efficient vehicles, the rise of ride-sharing services, the need for maneuverable cars in the country's road infrastructure, and the underlying macroeconomic factors such as economic growth and government policies. As the market continues to evolve, it is expected that the demand for small cars will continue to grow in Cambodia.

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).