Small Cars - Kuwait

Kuwait

Highlights

Revenue in the Small Cars market is projected to reach US$103m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.02%, resulting in a projected market volume of US$108m by 2029.
Small Cars market unit sales are expected to reach 7.2k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$15k.
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 Kuwait has been experiencing significant growth in recent years.

Customer preferences: Kuwaiti customers have shown a strong preference for small cars due to their affordability, fuel efficiency, and ease of maneuverability in the country's congested urban areas. Small cars are also popular among younger drivers who are looking for stylish and compact vehicles that are easy to park and navigate through the city streets. Additionally, the rising awareness of environmental issues and the desire to reduce carbon emissions have also contributed to the growing demand for small cars in Kuwait.

Trends in the market: One of the key trends in the Small Cars market in Kuwait is the increasing popularity of electric and hybrid vehicles. As the government and consumers become more conscious of the environmental impact of traditional gasoline-powered cars, there has been a growing demand for eco-friendly alternatives. Electric and hybrid small cars offer lower emissions and reduced fuel consumption, making them an attractive choice for environmentally conscious customers. This trend is expected to continue as the government introduces more incentives and infrastructure to support electric and hybrid vehicles in Kuwait. Another trend in the Small Cars market is the integration of advanced technology features in small car models. Kuwaiti customers are increasingly looking for small cars that offer the latest connectivity options, safety features, and entertainment systems. Automakers are responding to this demand by equipping their small car models with features such as touchscreen displays, Bluetooth connectivity, advanced driver-assistance systems, and smartphone integration. These technological advancements enhance the overall driving experience and appeal to tech-savvy customers.

Local special circumstances: One of the factors driving the growth of the Small Cars market in Kuwait is the country's high population density and limited parking space. The compact size of small cars makes them well-suited for navigating through crowded streets and finding parking in the city. Additionally, the high cost of living in Kuwait has led many customers to prioritize affordability when purchasing a car, making small cars an attractive option due to their lower price tags and lower maintenance costs.

Underlying macroeconomic factors: The Small Cars market in Kuwait is also influenced by macroeconomic factors such as the country's GDP growth, disposable income levels, and government policies. As the economy grows and disposable income levels rise, more customers are able to afford cars, leading to increased demand in the Small Cars market. Additionally, government policies and regulations, such as tax incentives and subsidies for small cars, can also impact the market dynamics. For example, the government's push towards reducing carbon emissions and promoting sustainable transportation has led to the introduction of incentives for electric and hybrid vehicles, further driving the growth of the Small Cars market in Kuwait.

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).