Small Cars - Southern Africa

Southern Africa

Highlights

Revenue in the Small Cars market is projected to reach US$2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.13%, resulting in a projected market volume of US$2bn by 2029.
Small Cars market unit sales are expected to reach 97.6k 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 China (US$13bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Small Cars market in Southern Africa has been experiencing significant growth in recent years. With a rising middle class and increasing urbanization, more and more consumers in the region are opting for small cars as their preferred mode of transportation.

Customer preferences in the Small Cars market in Southern Africa are largely driven by affordability and fuel efficiency. As the cost of living continues to rise, consumers are looking for vehicles that are not only affordable to purchase, but also economical to run. Small cars offer a more cost-effective solution compared to larger vehicles, making them an attractive option for budget-conscious consumers.

Additionally, with the increasing concern over environmental sustainability, fuel efficiency has become a key consideration for many car buyers in the region. Small cars are known for their fuel efficiency, making them a popular choice among environmentally conscious consumers. Trends in the Small Cars market in Southern Africa reflect the overall global trend towards smaller, more compact vehicles.

As urbanization continues to increase in the region, there is a growing demand for cars that are easy to maneuver and park in congested city streets. Small cars offer the perfect solution, with their compact size and agile handling. Furthermore, small cars are often perceived as being more practical for daily commuting and city driving, which further drives their popularity in the region.

Local special circumstances in Southern Africa also contribute to the growth of the Small Cars market. The region has a large population of young and first-time car buyers who are looking for affordable and practical transportation options. Small cars fit the bill perfectly, offering an affordable entry point into car ownership.

Additionally, the region's infrastructure, particularly in urban areas, is often not well-suited for larger vehicles. Small cars are easier to navigate through narrow streets and crowded parking lots, making them a more practical choice for many consumers. Underlying macroeconomic factors also play a role in the development of the Small Cars market in Southern Africa.

The region has seen steady economic growth in recent years, which has resulted in an expanding middle class with increased purchasing power. As a result, more consumers are able to afford cars, and small cars are often the most accessible option for many first-time buyers. Additionally, the rising cost of fuel in the region has made fuel efficiency a top priority for car buyers, further driving the demand for small cars.

Overall, the Small Cars market in Southern Africa is growing due to customer preferences for affordability and fuel efficiency, as well as the trend towards smaller and more practical vehicles. Local special circumstances, such as a young population and infrastructure limitations, also contribute to the market's development. These factors, combined with underlying macroeconomic growth, are driving the increasing popularity of small cars in the region.

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).