Small Cars - Portugal

Portugal

Revenue in the Small Cars market is projected to reach US$621m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.23%, resulting in a projected market volume of US$614m by 2029.
Small Cars market unit sales are expected to reach 39,170.0vehicles 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 Portugal has been experiencing steady growth in recent years.

Customer preferences: Portuguese customers have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. With limited parking space in urban areas and rising fuel costs, small cars have become a popular choice among Portuguese consumers. Additionally, the younger generation, who are more environmentally conscious, are opting for small cars as they have lower carbon emissions compared to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in Portugal is the increasing demand for electric and hybrid small cars. As the government has implemented policies to promote electric vehicles and reduce carbon emissions, more car manufacturers are introducing electric and hybrid models to cater to this growing demand. This trend is expected to continue as the government continues to provide incentives for electric vehicle adoption. Another trend in the Small Cars market is the rise of car-sharing services. With the increasing popularity of ride-hailing platforms and the high cost of car ownership, many Portuguese consumers are opting for car-sharing services instead. This trend is particularly prevalent in urban areas where owning a car is not a necessity. Car-sharing services offer the convenience of having access to a car without the financial burden of owning one.

Local special circumstances: Portugal has a well-developed charging infrastructure for electric vehicles, which has contributed to the growth of the electric small car market. The government has invested in the installation of charging stations across the country, making it convenient for electric vehicle owners to charge their cars. This has created a favorable environment for the adoption of electric small cars in Portugal.

Underlying macroeconomic factors: The economic stability and increasing disposable income of Portuguese consumers have also contributed to the growth of the Small Cars market. With a stable economy and low unemployment rates, more consumers have the financial means to purchase a car. Small cars, being more affordable compared to larger vehicles, have become an attractive option for many Portuguese consumers. In conclusion, the Small Cars market in Portugal is experiencing growth due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid small cars, the rise of car-sharing services, the availability of a charging infrastructure for electric vehicles, and the economic stability of the country are all factors contributing to the development of the 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).