Small Cars - Egypt

Egypt

Highlights

Revenue in the Small Cars market is projected to reach US$744m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -4.45%, resulting in a projected market volume of US$592m by 2029.
Small Cars market unit sales are expected to reach 33.6k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$19k.
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 Egypt has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Egypt, customers have shown a strong preference for small cars due to their affordability and fuel efficiency. With rising fuel prices and limited purchasing power, many consumers are looking for cost-effective transportation options. Small cars provide an attractive solution, offering lower upfront costs and better fuel economy compared to larger vehicles. Additionally, the compact size of small cars is well-suited for navigating Egypt's congested urban areas and narrow streets.

Trends in the market: One of the key trends in the Small Cars market in Egypt is the increasing demand for electric and hybrid vehicles. As concerns about climate change and environmental sustainability grow, more consumers are looking for greener alternatives to traditional gasoline-powered cars. Electric and hybrid small cars offer lower emissions and reduced dependence on fossil fuels, making them an appealing choice for environmentally-conscious buyers. Another trend in the market is the growing popularity of compact SUVs. While small cars traditionally referred to hatchbacks and sedans, the definition has expanded to include compact SUVs, which offer a higher seating position and increased cargo space. This trend reflects a shift in consumer preferences towards vehicles that offer a balance between practicality and maneuverability.

Local special circumstances: Egypt's government has implemented policies to support the growth of the Small Cars market. These include tax incentives and subsidies for electric and hybrid vehicles, as well as initiatives to improve charging infrastructure. These measures aim to promote the adoption of cleaner and more sustainable transportation options, aligning with the country's commitment to reducing greenhouse gas emissions.

Underlying macroeconomic factors: The growth of the Small Cars market in Egypt can also be attributed to underlying macroeconomic factors. The country has experienced stable economic growth in recent years, leading to an expansion of the middle class and an increase in disposable income. As a result, more consumers are able to afford car ownership, driving demand in the Small Cars market. Furthermore, the government's efforts to improve road infrastructure and reduce traffic congestion have made car ownership a more viable option for many Egyptians. This has contributed to the growth of the Small Cars market, as consumers seek affordable and practical transportation solutions. In conclusion, the Small Cars market in Egypt is developing due to changing customer preferences towards cost-effective and fuel-efficient vehicles, as well as the government's support for sustainable transportation options. The increasing demand for electric and hybrid cars, as well as compact SUVs, reflects the evolving needs and priorities of Egyptian consumers. With favorable macroeconomic conditions and ongoing infrastructure improvements, the Small Cars market in Egypt is expected to continue its growth trajectory 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).