Small Cars - Tanzania

Tanzania

In Tanzania, the revenue in the Small Cars market is projected to reach US$2m by 2024.
This market segment is expected to show an annual growth rate of 19.67% from 2024 to 2028, resulting in a projected market volume of US$5m by 2028.
By that time, it is estimated that the unit sales of Small Cars market in Tanzania will reach 334.0vehicles.
The volume weighted average price of Small Cars market in the Tanzanian market segment is expected to be US$14k in 2024.
From an international perspective, it is evident that China will generate the most revenue in the Small Cars market, with a projected revenue of US$13,380m in 2024.
Despite the increasing demand for small cars globally, Tanzania's market for small cars remains relatively underdeveloped due to the preference for larger, more durable vehicles.

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

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Analyst Opinion

The Small Cars market in Tanzania has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing preference for small cars among Tanzanian consumers. Small cars are popular due to their affordability, fuel efficiency, and compact size, which makes them well-suited for navigating the country's crowded urban areas. Additionally, small cars are often seen as a status symbol, especially among younger consumers who value style and practicality.

Trends in the market: Another trend driving the growth of the Small Cars market in Tanzania is the increasing availability of financing options. Many car manufacturers and financial institutions have introduced attractive financing packages, making it easier for consumers to purchase small cars. This has opened up the market to a wider range of potential buyers who may not have been able to afford a car previously.

Local special circumstances: The Tanzanian government has also implemented policies to support the growth of the automotive industry, including reducing import duties on small cars. This has made small cars more affordable for consumers and has encouraged car manufacturers to expand their presence in the country. Additionally, the government has invested in improving the country's road infrastructure, making it more conducive for small car usage.

Underlying macroeconomic factors: The growth of the Small Cars market in Tanzania can also be attributed to the country's overall economic development. Tanzania has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, more Tanzanians are able to afford small cars and are willing to invest in them as a means of transportation and for personal convenience. In conclusion, the Small Cars market in Tanzania is witnessing significant growth due to customer preferences for affordable and fuel-efficient vehicles, the availability of attractive financing options, government support for the automotive industry, and the country's overall economic development. These factors are expected to continue driving the growth of the market 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).