Small Cars - New Zealand

New Zealand

Revenue in the Small Cars market is projected to reach US$247m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 2.03%, resulting in a projected market volume of US$267m by 2028.
Small Cars market unit sales are expected to reach 16.8k vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$16k.
From an international perspective it is shown that the most revenue will be generated in China (US$13,380m in 2024).

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

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Analyst Opinion

The Small Cars market in New Zealand has been experiencing steady growth in recent years.

Customer preferences: Customers in New Zealand have shown a strong preference for small cars due to their fuel efficiency and compact size. With rising fuel prices and increasing environmental awareness, many consumers are opting for smaller vehicles that offer better mileage and produce fewer emissions. Additionally, small cars are easier to maneuver in urban areas with limited parking spaces, which is particularly important in cities like Auckland and Wellington.

Trends in the market: One of the key trends in the small car market in New Zealand is the growing popularity of electric and hybrid vehicles. As the government encourages the adoption of cleaner and greener transportation options, more car manufacturers are introducing electric and hybrid models to cater to the increasing demand. This trend is expected to continue as technology advances and the charging infrastructure improves across the country. Another trend in the market is the rise of compact SUVs. While not traditionally classified as small cars, these vehicles offer a similar appeal to consumers who are looking for a practical and versatile option. Compact SUVs provide a higher seating position, ample cargo space, and improved safety features, making them attractive to families and outdoor enthusiasts.

Local special circumstances: New Zealand's unique geography and road conditions play a significant role in shaping the small car market. The country's winding roads, hilly terrains, and narrow streets require vehicles that are agile and easy to handle. Small cars fit these requirements perfectly, allowing drivers to navigate through challenging landscapes with ease. Additionally, the compact size of small cars makes them ideal for parking in tight spaces, which is often a challenge in busy urban areas.

Underlying macroeconomic factors: The New Zealand economy has been relatively stable in recent years, with a growing GDP and low unemployment rates. This has contributed to increased consumer confidence and spending power, leading to a higher demand for small cars. Additionally, the government's focus on sustainability and reducing carbon emissions has created a favorable environment for the growth of the small car market, as consumers are more inclined to choose fuel-efficient and eco-friendly vehicles. In conclusion, the small car market in New Zealand is thriving due to customer preferences for fuel efficiency and compact size, as well as the increasing popularity of electric and hybrid vehicles. The unique geography and road conditions in the country, along with a stable economy and government initiatives, further support the growth of this market.

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).