Small Cars - Kenya

Kenya

In Kenya, the revenue in the Small Cars market is projected to reach US$4m in 2024.
This market segment is expected to show an annual growth rate (CAGR 2024-2028) of 14.24%, resulting in a projected market volume of US$7m by 2028.
By that year, the unit sales of Small Cars market in Kenya are expected to reach 399.0vehicles.
Furthermore, it is anticipated that the volume weighted average price of Small Cars market in Kenya will amount to US$18k in 2024.
When considering the international perspective, it is noteworthy that China is projected to generate the highest revenue in the Small Cars market, amounting to US$13,380m in 2024.
Despite the growing demand for small cars in Kenya, the market remains largely dominated by second-hand imports.

Key regions: Europe, Worldwide, China, United Kingdom, United States

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Analyst Opinion

The Small Cars market in Kenya is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory.

Customer preferences in Kenya are driving the demand for small cars. With limited parking space and congested roads in urban areas, small cars are preferred for their maneuverability and fuel efficiency. Additionally, small cars are more affordable for the majority of the population, making them an attractive option for first-time car buyers and those on a budget.

Trends in the market further support the growth of the Small Cars segment in Kenya. The rise of ride-sharing services, such as Uber and Taxify, has increased the demand for small cars among drivers looking for vehicles that are economical and easy to navigate through traffic. Furthermore, the growing awareness of environmental concerns and the need for sustainable transportation options have also contributed to the popularity of small cars, which tend to have lower carbon emissions compared to larger vehicles.

Local special circumstances in Kenya also play a role in the development of the Small Cars market. The country's infrastructure, particularly in rural areas, is still developing, with many roads being narrow and poorly maintained. Small cars are better suited to navigate these challenging conditions, making them a practical choice for many Kenyan drivers.

Additionally, the high cost of fuel in Kenya makes fuel efficiency a top priority for car owners, further driving the demand for small cars. Underlying macroeconomic factors are also contributing to the growth of the Small Cars market in Kenya. The country's economy has been experiencing steady growth in recent years, leading to an increase in disposable income and purchasing power among consumers.

As a result, more people are able to afford cars, and the demand for small cars, which are more affordable than larger vehicles, has risen accordingly. In conclusion, the Small Cars market in Kenya is developing due to customer preferences for maneuverability and affordability, as well as trends in the market such as the rise of ride-sharing services and the growing awareness of environmental concerns. Local special circumstances, such as infrastructure challenges and high fuel costs, further contribute to the demand for small cars.

Additionally, underlying macroeconomic factors, including economic growth and increased purchasing power, support the growth of the Small Cars market in Kenya.

Methodology

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).