Small Cars - NAFTA

NAFTA

Highlights

Revenue in the Small Cars market is projected to reach US$12bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.49%, resulting in a projected market volume of US$12bn by 2029.
Small Cars market unit sales are expected to reach 609.8k vehicles 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 NAFTA has been experiencing significant developments and trends in recent years.

Customer preferences: Customers in the NAFTA region have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are especially popular among urban dwellers who value easy maneuverability and parking in crowded city streets. Additionally, with rising concerns about environmental sustainability, many consumers are opting for small cars as they are perceived to have a smaller carbon footprint compared to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in NAFTA is the increasing demand for electric and hybrid small cars. As governments and consumers alike prioritize sustainability, there has been a growing interest in electric and hybrid vehicles. This trend is particularly evident in North America, where the market for electric and hybrid cars has been steadily expanding. Automakers are responding to this trend by introducing more electric and hybrid small car models to cater to the changing customer preferences. Another trend in the Small Cars market in NAFTA is the integration of advanced technology features in small cars. Customers are increasingly looking for small cars that offer the same level of technology and connectivity as larger vehicles. This includes features such as touchscreen infotainment systems, smartphone integration, advanced safety features, and autonomous driving capabilities. Automakers are incorporating these features into their small car models to attract tech-savvy customers and remain competitive in the market.

Local special circumstances: In the United States, one of the key factors driving the Small Cars market is the rising fuel prices. As fuel prices continue to fluctuate, many consumers are opting for small cars as they offer better fuel efficiency compared to larger vehicles. Additionally, the increasing urbanization in the country has led to a higher demand for small cars as they are easier to navigate through congested city streets and park in limited spaces. In Mexico, the Small Cars market is influenced by the country's growing middle class. As more people enter the middle class and experience an increase in disposable income, there is a greater demand for affordable and practical transportation options. Small cars fit this criteria perfectly, offering an affordable and efficient means of transportation for the expanding middle class.

Underlying macroeconomic factors: The Small Cars market in NAFTA is also influenced by various macroeconomic factors. Economic growth and stability play a crucial role in driving consumer confidence and purchasing power. As the economy grows, consumers are more likely to invest in small cars as they offer a cost-effective solution for transportation needs. Government policies and regulations also impact the Small Cars market in NAFTA. Incentives and subsidies for electric and hybrid vehicles, as well as stricter emissions standards, encourage consumers to opt for small cars that are more environmentally friendly. Additionally, trade agreements and tariffs can affect the availability and affordability of small cars in the market. In conclusion, the Small Cars market in NAFTA is witnessing trends such as the increasing demand for electric and hybrid vehicles, integration of advanced technology features, and the influence of factors like rising fuel prices and growing middle class. These trends are driven by customer preferences for fuel efficiency, affordability, and practicality, as well as underlying macroeconomic factors and government policies.

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).