Small Cars - Israel

Israel

Highlights

Revenue in the Small Cars market is projected to reach US$1bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.50%, resulting in a projected market volume of US$2bn by 2029.
Small Cars market unit sales are expected to reach 45.3k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$37k.
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 Israel has been experiencing significant growth in recent years.

Customer preferences: Israeli customers have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular among urban dwellers who navigate through narrow streets and face limited parking spaces. Additionally, the rising cost of living in Israel has led many consumers to prioritize cost-saving measures, making small cars an attractive option for budget-conscious individuals.

Trends in the market: One prominent trend in the Small Cars market in Israel is the increasing demand for electric and hybrid vehicles. As the government and environmental organizations promote sustainable transportation solutions, more Israeli consumers are opting for eco-friendly small cars. The availability of government incentives, such as tax breaks and subsidies, has further fueled the adoption of electric and hybrid vehicles in the country. Another trend in the market is the integration of advanced technology features in small cars. Israeli consumers are tech-savvy and value connectivity and convenience in their vehicles. As a result, small car manufacturers are incorporating features such as touchscreen infotainment systems, smartphone integration, and advanced safety features to cater to these preferences.

Local special circumstances: Israel has a unique geographical and political landscape that influences the Small Cars market. With its relatively small size, limited natural resources, and high population density, Israel faces challenges related to traffic congestion and pollution. These factors have contributed to the increased demand for small cars, as they are more maneuverable in congested urban areas and have lower environmental impact compared to larger vehicles.

Underlying macroeconomic factors: The growth of the Small Cars market in Israel can be attributed to several underlying macroeconomic factors. Firstly, the stable economic conditions in the country have increased consumers' purchasing power, enabling them to afford small cars. Additionally, the availability of favorable financing options, such as low-interest rates and flexible payment plans, has made small cars more accessible to a wider range of consumers. Furthermore, the government's efforts to promote the automotive industry through policies and incentives have played a significant role in the market's growth. The implementation of regulations that encourage the import and production of small cars, as well as the development of charging infrastructure for electric vehicles, has created a supportive environment for the Small Cars market in Israel. In conclusion, the Small Cars market in Israel is experiencing growth due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid cars, integration of advanced technology features, unique local circumstances, and favorable macroeconomic factors have all contributed to the expansion of the market in Israel.

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).