Small Cars - Iran | Statista Market Forecast

Small Cars - Iran

Iran

Highlights

Revenue in the Small Cars market is projected to reach US$6bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.31%, resulting in a projected market volume of US$6bn by 2029.
Small Cars market unit sales are expected to reach 317.1k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$20k.
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 Iran has been experiencing 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 Iran have shifted towards smaller cars due to several reasons. Firstly, smaller cars are more fuel-efficient, which is an important consideration in a country where fuel prices are relatively high. Secondly, smaller cars are easier to maneuver and park in crowded urban areas, which is particularly relevant in cities like Tehran where traffic congestion is a major issue.

Lastly, smaller cars are generally more affordable, making them attractive to budget-conscious consumers. Trends in the Small Cars market in Iran have been influenced by global and regional developments. The increasing popularity of electric vehicles (EVs) worldwide has also had an impact on Iran.

As the government has been actively promoting the use of EVs to reduce air pollution and dependence on fossil fuels, the demand for small electric cars has been on the rise. Additionally, the growing trend of car-sharing services in urban areas has led to an increased demand for compact and economical vehicles. Local special circumstances in Iran have also contributed to the growth of the Small Cars market.

Economic sanctions imposed on the country have limited the availability of larger, more luxurious vehicles. As a result, consumers have turned to smaller cars as a more practical and accessible option. Furthermore, the government has implemented policies and incentives to support the local automotive industry, which has led to the production of a wider range of small cars by domestic manufacturers.

Underlying macroeconomic factors have played a significant role in the development of the Small Cars market in Iran. The country has experienced a period of economic growth, which has led to an increase in disposable income and consumer spending. This has allowed more people to afford cars, particularly smaller and more affordable models.

Additionally, the government's efforts to stabilize inflation and improve the business environment have boosted consumer confidence and encouraged investment in the automotive sector. In conclusion, the Small Cars market in Iran has been growing due to customer preferences for fuel efficiency, maneuverability, and affordability. Global trends such as the rise of EVs and car-sharing services have also influenced the market.

Local special circumstances, including economic sanctions and government support for the automotive industry, have further contributed to the growth. Underlying macroeconomic factors such as economic growth and improved consumer confidence have also played a role in 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).