Small Cars - Luxembourg

Luxembourg

Revenue in the Small Cars market is projected to reach US$106m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.43%, resulting in a projected market volume of US$114m by 2029.
Small Cars market unit sales are expected to reach 6,396.0vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$18k.
From an international perspective it is shown that the most revenue will be generated in China (US$13,290m in 2024).

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

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Analyst Opinion

The Small Cars market in Luxembourg has been experiencing significant growth in recent years. Customer preferences for smaller, more fuel-efficient vehicles have driven this trend, as consumers seek to reduce their carbon footprint and save on fuel costs. Additionally, the compact size of small cars makes them well-suited for navigating the narrow streets and limited parking spaces in Luxembourg's urban areas.

Customer preferences: Luxembourg has a strong culture of environmental consciousness, and this is reflected in the preferences of car buyers. Small cars offer lower emissions and better fuel efficiency compared to larger vehicles, making them a popular choice among environmentally conscious consumers. Additionally, the compact size of small cars makes them easier to maneuver in urban areas, where parking spaces can be limited.

Trends in the market: The small cars market in Luxembourg has seen a rise in demand for electric and hybrid vehicles. As the government and consumers become increasingly concerned about climate change and air pollution, there has been a shift towards more sustainable transportation options. Electric and hybrid small cars offer lower emissions and reduced fuel consumption, making them an attractive choice for environmentally conscious consumers. Another trend in the market is the increasing popularity of small luxury cars. As the economy in Luxembourg continues to grow, consumers have more disposable income to spend on luxury goods, including cars. Small luxury cars offer the same level of comfort and style as larger luxury vehicles, but with the added benefit of being more fuel-efficient and easier to maneuver in urban areas.

Local special circumstances: Luxembourg is a small country with a high population density, particularly in its urban areas. This means that there is limited space for parking and maneuvering larger vehicles. Small cars are well-suited for navigating the narrow streets and fitting into tight parking spaces, making them a practical choice for many residents.

Underlying macroeconomic factors: Luxembourg has a strong and stable economy, with high levels of disposable income among its residents. This has contributed to the growth of the small cars market, as consumers have more money to spend on purchasing and maintaining vehicles. Additionally, the government has implemented policies and incentives to promote the use of electric and hybrid vehicles, further driving the growth of the small cars market in Luxembourg.

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).