Small Cars - Colombia

Colombia

Highlights

Revenue in the Small Cars market is projected to reach US$564m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.44%, resulting in a projected market volume of US$552m by 2029.
Small Cars market unit sales are expected to reach 32.0k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$17k.
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 Colombia has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Colombian customers have shown a strong preference for small cars due to their affordability, fuel efficiency, and compact size. Small cars are particularly popular among urban dwellers who value maneuverability and ease of parking in congested city streets. Additionally, rising concerns about environmental sustainability have led to an increased demand for small cars, as they generally have lower carbon emissions compared to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in Colombia is the increasing availability of electric and hybrid small cars. As the government and consumers become more conscious of the environmental impact of traditional gasoline-powered vehicles, there has been a growing demand for eco-friendly alternatives. This trend is expected to continue as more automakers introduce electric and hybrid models into the market. Another trend in the market is the integration of advanced technology features in small cars. Colombian consumers are increasingly looking for small cars that offer advanced safety features, connectivity options, and infotainment systems. Automakers are responding to this demand by equipping their small car models with features such as lane departure warning, blind-spot monitoring, touchscreen displays, and smartphone integration.

Local special circumstances: Colombia's unique geography and road infrastructure play a role in shaping the Small Cars market. The country's mountainous terrain and narrow roads make small cars a practical choice for many Colombians. Additionally, the high cost of fuel in Colombia has also contributed to the popularity of small cars, as they are generally more fuel-efficient compared to larger vehicles.

Underlying macroeconomic factors: The overall economic growth in Colombia has had a positive impact on the Small Cars market. As disposable incomes rise and the middle class expands, more consumers are able to afford small cars. Additionally, favorable government policies such as tax incentives for purchasing small cars have also contributed to the market growth. In conclusion, the Small Cars market in Colombia is developing due to customer preferences for affordable and fuel-efficient vehicles, the availability of electric and hybrid models, the integration of advanced technology features, the country's unique geography and road infrastructure, and the overall economic growth in Colombia. These factors are expected to continue driving the growth of the Small Cars market in the coming years.

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).