Small Cars - Canada

Canada

Highlights

Revenue in the Small Cars market is projected to reach US$308m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.81%, resulting in a projected market volume of US$321m by 2029.
Small Cars market unit sales are expected to reach 16.9k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$18k.
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 Canada has been witnessing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in Canada have shifted towards smaller cars due to several reasons. Firstly, rising fuel prices have made fuel efficiency a top priority for consumers. Small cars are known for their fuel efficiency, making them an attractive option for budget-conscious buyers.

Secondly, the increasing awareness of environmental issues has led to a growing demand for eco-friendly vehicles. Small cars generally have lower emissions and are perceived as being more environmentally friendly compared to larger vehicles. Lastly, the compact size of small cars makes them ideal for navigating crowded urban areas and tight parking spaces, which is particularly relevant in cities like Toronto and Vancouver.

Trends in the Small Cars market in Canada reflect these customer preferences. Automakers have been introducing more fuel-efficient and eco-friendly models to cater to the demand. Hybrid and electric small cars have gained popularity in recent years, as they offer even greater fuel efficiency and lower emissions.

Additionally, there has been a trend towards smaller SUVs and crossovers, which combine the practicality of a larger vehicle with the fuel efficiency of a small car. Local special circumstances also play a role in the growth of the Small Cars market in Canada. The country's government has implemented various incentives and subsidies to promote the adoption of electric and hybrid vehicles.

These include tax credits, rebates, and grants, which make small cars more affordable for consumers. Furthermore, the availability of charging infrastructure has improved, making electric vehicles a more viable option for Canadian consumers. Underlying macroeconomic factors have also contributed to the development of the Small Cars market in Canada.

The country has experienced a stable economy with low unemployment rates, which has increased consumer confidence and purchasing power. Additionally, the Canadian government has implemented stricter emissions regulations, pushing automakers to invest in smaller, more fuel-efficient vehicles. In conclusion, the Small Cars market in Canada is experiencing growth due to customer preferences for fuel efficiency, eco-friendliness, and practicality.

Trends in the market reflect these preferences, with automakers introducing more fuel-efficient and eco-friendly models. Local special circumstances, such as government incentives and charging infrastructure, have further stimulated the market. Underlying macroeconomic factors, such as a stable economy and stricter emissions regulations, have also contributed to 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).