Small Cars - Nigeria

Nigeria

Revenue in the Small Cars market is projected to reach US$57m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.28%, resulting in a projected market volume of US$57m by 2029.
Small Cars market unit sales are expected to reach 3.6k vehicles in 2029.
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$13,290m in 2024).

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

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Analyst Opinion

The Small Cars market in Nigeria has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in Nigeria have shifted towards smaller, more fuel-efficient vehicles. This can be attributed to several factors, including rising fuel prices and increasing awareness of environmental issues. Consumers are looking for cars that are affordable to purchase and operate, and small cars fit these criteria.

Additionally, the compact size of small cars makes them well-suited for navigating Nigeria's crowded urban areas. Trends in the market also support the growth of the Small Cars segment in Nigeria. As the country's middle class continues to expand, more people are able to afford personal vehicles.

Small cars, with their lower price points, are an attractive option for these new car buyers. Furthermore, the availability of financing options has made it easier for consumers to purchase small cars, further driving demand. Local special circumstances in Nigeria have also played a role in the development of the Small Cars market.

The country's infrastructure is still developing, with many roads in need of repair. Small cars are better able to navigate these challenging road conditions compared to larger vehicles. Additionally, the high cost of vehicle maintenance and repairs in Nigeria makes small cars more appealing, as they typically have lower maintenance costs.

Underlying macroeconomic factors have also contributed to the growth of the Small Cars market in Nigeria. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed more people to enter the car market and consider purchasing a small car.

Additionally, government policies promoting the use of smaller, more fuel-efficient vehicles have further boosted the demand for small cars. In conclusion, the Small Cars market in Nigeria is developing due to a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As consumers prioritize affordability, fuel efficiency, and maneuverability, small cars have become the preferred choice for many Nigerian car buyers.

With the country's middle class expanding and infrastructure still developing, the Small Cars segment is expected to continue its growth trajectory in the coming years.

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).