Small Cars - Madagascar

Madagascar

Highlights

Revenue in the Small Cars market is projected to reach US$2m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.72%, resulting in a projected market volume of US$2m by 2029.
Small Cars market unit sales are expected to reach 111.0vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$19k.
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 Madagascar has been experiencing significant growth in recent years.

Customer preferences: Madagascar, like many other countries in Africa, has seen a rise in the demand for small cars. This can be attributed to several factors. Firstly, small cars are more affordable compared to larger vehicles, making them accessible to a wider range of customers. Additionally, small cars are fuel-efficient, which is particularly important in a country where fuel prices can be high. Furthermore, the compact size of small cars makes them well-suited for navigating through crowded urban areas and narrow roads, which is a common feature in Madagascar.

Trends in the market: One of the key trends in the Small Cars market in Madagascar is the increasing popularity of electric and hybrid vehicles. As the global trend towards sustainable and eco-friendly transportation gains momentum, Madagascar is following suit. Customers are becoming more conscious of their carbon footprint and are opting for vehicles that have lower emissions. This trend is expected to continue as the government of Madagascar promotes the use of electric vehicles through various incentives and subsidies. Another trend in the market is the growing demand for small SUVs. While small cars remain popular, there is a shift towards small SUVs due to their versatility and higher seating position. Small SUVs offer customers the benefits of a compact car, such as fuel efficiency and maneuverability, while also providing additional space and a more commanding view of the road.

Local special circumstances: Madagascar has a unique geography and infrastructure that influences the Small Cars market. The country is known for its challenging road conditions, with many areas lacking proper infrastructure. This has led to an increased demand for small cars that are better equipped to handle rough terrain. Additionally, the high cost of vehicle maintenance and repairs in Madagascar has made small cars more appealing to customers, as they tend to have lower maintenance costs compared to larger vehicles.

Underlying macroeconomic factors: The economic development and stability of Madagascar play a crucial role in the growth of the Small Cars market. As the country's economy continues to improve, more people have disposable income to spend on purchasing vehicles. Additionally, the government's efforts to improve road infrastructure and expand access to financing options have also contributed to the growth of the market. In conclusion, the Small Cars market in Madagascar is experiencing growth due to customer preferences for affordable and fuel-efficient vehicles, as well as the unique geography and infrastructure of the country. The market is also being influenced by global trends towards electric and hybrid vehicles, as well as the growing demand for small SUVs. The underlying macroeconomic factors, such as economic development and improved road infrastructure, are further driving the growth 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).