Small Cars - Hungary

Hungary

Highlights

Revenue in the Small Cars market is projected to reach US$198m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.03%, resulting in a projected market volume of US$219m by 2029.
Small Cars market unit sales are expected to reach 12.8k 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 Hungary is experiencing significant growth and development.

Customer preferences: Hungarian customers have shown a strong preference for small cars due to their affordability, fuel efficiency, and compact size. These vehicles are well-suited for navigating the narrow streets and crowded city centers of Hungary's urban areas. Additionally, small cars are popular among younger drivers and first-time car buyers who are looking for a practical and economical mode of transportation.

Trends in the market: One of the key trends in the Small Cars market in Hungary is the increasing demand for electric and hybrid vehicles. As the government and environmental organizations promote sustainable transportation, more consumers are opting for eco-friendly options. This trend is driven by factors such as government incentives, lower operating costs, and a growing awareness of environmental issues. Another trend in the market is the rise of car-sharing services and ride-hailing platforms. These services provide an alternative to car ownership, particularly in urban areas where parking is limited and traffic congestion is high. As a result, some consumers are choosing to forgo purchasing a car and instead rely on these convenient and cost-effective transportation options.

Local special circumstances: Hungary's small car market is influenced by several local special circumstances. Firstly, the country has a high population density, particularly in its urban areas. This means that compact cars are more practical for navigating the narrow streets and finding parking spaces. Additionally, Hungary has a well-developed public transportation system, which provides an alternative to private car ownership. However, the convenience and flexibility offered by small cars make them an appealing choice for many consumers.

Underlying macroeconomic factors: The growth of the Small Cars market in Hungary can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced a period of sustained economic growth, which has increased disposable income levels and consumer confidence. This has made it easier for consumers to afford a car purchase, particularly in the small car segment. Furthermore, Hungary has a strong manufacturing sector, which includes several automotive companies. This has led to the availability of a wide range of small car models in the market, catering to different customer preferences and budgets. The presence of local manufacturing also contributes to the affordability of small cars, as they are produced domestically and do not incur high import costs. In conclusion, the Small Cars market in Hungary is growing and evolving due to customer preferences for affordable and fuel-efficient vehicles, the increasing demand for electric and hybrid cars, the rise of car-sharing services, and the country's unique local circumstances. These trends are supported by underlying macroeconomic factors such as economic growth and a strong manufacturing sector.

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).