Small Cars - Taiwan

Taiwan

Revenue in the Small Cars market is projected to reach US$746m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.93%, resulting in a projected market volume of US$781m by 2029.
Small Cars market unit sales are expected to reach 42.4k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$19k.
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 Taiwan has been experiencing significant growth in recent years.

Customer preferences: Taiwanese consumers have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular in urban areas where parking space is limited and traffic congestion is common. Additionally, the younger generation in Taiwan tends to prioritize environmental sustainability, and small cars are perceived as being more eco-friendly compared to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in Taiwan is the increasing demand for electric and hybrid small cars. As the government has implemented policies and incentives to promote the use of electric vehicles, more Taiwanese consumers are opting for small cars with alternative fuel options. This trend is also driven by the growing awareness of climate change and the desire to reduce carbon emissions. Another trend in the market is the rise of smart features and connectivity in small cars. Taiwanese consumers are increasingly looking for vehicles that offer advanced technology and connectivity options such as smartphone integration, navigation systems, and driver assistance features. Car manufacturers are responding to this demand by incorporating these features into their small car models, making them more appealing to tech-savvy consumers.

Local special circumstances: Taiwan is a densely populated country with limited space, especially in urban areas. This has led to a high demand for small cars that are easier to maneuver and park in crowded streets. Additionally, the relatively high cost of living in Taiwan has made small cars a popular choice among budget-conscious consumers.

Underlying macroeconomic factors: The strong economic growth in Taiwan has contributed to the increasing demand for small cars. As disposable incomes rise, more Taiwanese consumers are able to afford car ownership, and small cars are often the most affordable option. Furthermore, the government's efforts to improve public transportation infrastructure have not been fully successful, leading to a greater reliance on private vehicles, including small cars. In conclusion, the Small Cars market in Taiwan is witnessing growth due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid small cars, as well as the integration of smart features and connectivity, are key trends in the market. The local special circumstances of limited space and the high cost of living in Taiwan contribute to the popularity of small cars. The strong economic growth and the government's focus on improving public transportation infrastructure also play a role in driving 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).