Small Cars - Sweden

Sweden

Highlights

Revenue in the Small Cars market is projected to reach US$447m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.66%, resulting in a projected market volume of US$485m by 2029.
Small Cars market unit sales are expected to reach 26.4k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$18k.
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 Sweden has been experiencing steady growth in recent years.

Customer preferences: Swedish customers have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular among urban dwellers who value easy maneuverability and parking in crowded city centers. Additionally, the increasing awareness of environmental issues and the desire to reduce carbon emissions have also contributed to the growing demand for small cars in Sweden.

Trends in the market: One of the key trends in the Small Cars market in Sweden is the rising popularity of electric and hybrid small cars. With the government's push towards reducing carbon emissions and promoting sustainable transportation, more Swedish customers are opting for electric or hybrid small cars as an eco-friendly alternative to traditional gasoline-powered vehicles. This trend is further supported by the expanding charging infrastructure across the country, making it more convenient for electric vehicle owners. Another trend in the market is the increasing demand for small SUVs. While small cars have traditionally been associated with hatchbacks and sedans, Swedish customers are now showing a growing interest in small SUVs. These vehicles offer a higher seating position, improved visibility, and a more rugged design, which appeals to customers who want a versatile and practical vehicle for both urban and outdoor adventures.

Local special circumstances: Sweden's high taxes on vehicles, including a registration tax and an annual ownership tax based on carbon dioxide emissions, have influenced the Small Cars market. Small cars, with their lower carbon emissions, are subject to lower taxes compared to larger vehicles. This incentivizes customers to choose small cars as a more cost-effective option.

Underlying macroeconomic factors: Sweden's strong economy and high disposable income levels have contributed to the growth of the Small Cars market. With a stable job market and favorable lending conditions, more customers have the financial means to purchase a new car. Furthermore, the availability of attractive financing options, such as low-interest rates and flexible payment plans, has made it easier for customers to afford a small car. In conclusion, the Small Cars market in Sweden is thriving due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid small cars, as well as the popularity of small SUVs, reflects the evolving needs and preferences of Swedish customers. The local special circumstances, such as high taxes on vehicles and favorable financing options, further support the growth of the market. With a strong economy and high disposable income levels, the Small Cars market in Sweden is expected to continue its upward trajectory in the coming years.

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).