Small Cars - Eastern Asia

Eastern Asia

Highlights

Revenue in the Small Cars market is projected to reach US$30bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.22%, resulting in a projected market volume of US$31bn by 2029.
Small Cars market unit sales are expected to reach 2.0m vehicles 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 China (US$13bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Small Cars market in Eastern Asia has experienced 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 Eastern Asia have played a key role in the growth of the Small Cars market. In this region, customers tend to prioritize affordability, fuel efficiency, and compact size when choosing a car. Small cars meet these preferences, as they are generally more affordable than larger vehicles and offer better fuel efficiency.

Additionally, the compact size of small cars is well-suited for the densely populated cities in Eastern Asia, where parking and maneuverability can be challenging. Trends in the Small Cars market in Eastern Asia have also contributed to its growth. One notable trend is the increasing demand for electric and hybrid small cars.

As environmental concerns and government regulations regarding emissions become more prominent, customers in Eastern Asia are seeking greener alternatives. Electric and hybrid small cars offer lower emissions and reduced fuel consumption, making them an attractive choice for environmentally conscious consumers. Another trend in the market is the rise of advanced safety features in small cars.

Customers in Eastern Asia prioritize safety when purchasing a vehicle, and car manufacturers have responded by equipping small cars with features such as lane departure warning, automatic emergency braking, and blind spot detection. These safety features not only provide peace of mind to customers but also align with the stringent safety regulations in many Eastern Asian countries. Local special circumstances in Eastern Asia have also influenced the development of the Small Cars market.

For example, in countries like Japan and South Korea, domestic car manufacturers have a strong presence and are known for producing high-quality small cars. This has created a sense of national pride and loyalty among customers, leading to a preference for domestic small car brands. Underlying macroeconomic factors have also played a role in the growth of the Small Cars market in Eastern Asia.

Rapid urbanization and rising incomes in countries like China have led to an increase in the number of individuals who can afford to purchase a car. As a result, the demand for small cars has grown, as they are more affordable and practical for urban dwellers. In conclusion, the Small Cars market in Eastern Asia has experienced significant growth due to customer preferences for affordability, fuel efficiency, and compact size.

Trends such as the demand for electric and hybrid small cars and advanced safety features have also contributed to this development. Local special circumstances, such as the presence of domestic car manufacturers, have further shaped the market. Lastly, underlying macroeconomic factors, such as rapid urbanization and rising incomes, have increased the demand for small cars in Eastern Asia.

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).