Small Cars - Uruguay

Uruguay

In 2024, it is projected that the Small Cars market in Uruguay will generate a revenue of US$105m.
Looking ahead, the market is expected to experience a steady annual growth rate (CAGR 2024-2028) of 9.63%.
This growth will result in a projected market volume of US$151m by 2028.
Furthermore, it is anticipated that the unit sales of Small Cars market in Uruguay will reach 9.1k vehicles by 2028.
In terms of pricing, the volume weighted average price of Small Cars market in Uruguay is expected to be US$17k in 2024.
When considering the international perspective, it is worth noting that China is projected to generate the highest revenue in the Small Cars market, with a staggering US$13,380m in 2024.
Despite the growing popularity of SUVs and crossovers in many markets, small cars continue to dominate the roads of Uruguay, with their compact size and fuel efficiency being highly valued by consumers in the country.

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

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Analyst Opinion

The Small Cars market in Uruguay has been experiencing significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: Uruguayans have traditionally favored smaller, more fuel-efficient cars due to their affordability and practicality. This preference for small cars is driven by factors such as limited parking space in urban areas, high fuel prices, and a focus on environmental sustainability. Additionally, small cars are often perceived as being easier to maneuver in congested city streets.

Trends in the market: One of the key trends in the Small Cars market in Uruguay is the increasing demand for electric and hybrid vehicles. As the government and consumers become more environmentally conscious, there is a growing interest in eco-friendly transportation options. This trend is also influenced by the availability of government incentives and subsidies for electric and hybrid cars, making them more affordable for consumers. In addition, technological advancements in battery technology have led to improved range and performance of electric vehicles, further driving their popularity in the market. Another trend in the Small Cars market in Uruguay is the rising popularity of compact SUVs. These vehicles offer a combination of the practicality and fuel efficiency of small cars with the added benefit of increased cargo space and a higher driving position. Compact SUVs appeal to consumers who desire a versatile vehicle that can handle both urban and off-road driving conditions. The availability of a wide range of compact SUV models from various manufacturers has contributed to the growth of this segment in the market.

Local special circumstances: Uruguay has a relatively small population compared to other countries, which has led to a limited number of car manufacturers and models available in the market. However, this has not deterred consumers from purchasing small cars, as they are seen as a practical and affordable choice for everyday transportation. Additionally, the government has implemented policies to promote the use of small cars, such as lower taxes and import duties on vehicles with smaller engines, further incentivizing consumers to choose small cars over larger ones.

Underlying macroeconomic factors: The Small Cars market in Uruguay is also influenced by macroeconomic factors such as income levels, interest rates, and consumer confidence. Economic stability and growth have a positive impact on consumer spending power, making it more likely for individuals to purchase cars. Low interest rates make car loans more affordable, encouraging consumers to make big-ticket purchases like cars. Similarly, high consumer confidence levels indicate a positive outlook for the economy, leading to increased consumer spending on cars. In conclusion, the Small Cars market in Uruguay is growing due to changing customer preferences, market trends, and local special circumstances. The demand for electric and hybrid vehicles, as well as compact SUVs, is on the rise, driven by factors such as environmental consciousness, government incentives, and technological advancements. Additionally, the practicality and affordability of small cars continue to attract consumers in Uruguay.

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).