Small Cars - Zambia

Zambia

Highlights

Revenue in the Small Cars market is projected to reach US$5m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.66%, resulting in a projected market volume of US$5m by 2029.
Small Cars market unit sales are expected to reach 284.0vehicles 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 Zambia has been experiencing significant growth in recent years.

Customer preferences: Zambian customers have shown a strong preference for small cars due to their affordability and fuel efficiency. With rising fuel prices and limited disposable income, many consumers are opting for smaller, more economical vehicles. Small cars also offer greater maneuverability, making them ideal for navigating the country's congested urban areas. Additionally, the compact size of these vehicles makes them easier to park, which is a crucial consideration in cities with limited parking spaces.

Trends in the market: One of the key trends in the Small Cars market in Zambia is the increasing demand for electric and hybrid vehicles. As global awareness of climate change and environmental issues grows, more consumers are seeking eco-friendly transportation options. This trend is reflected in Zambia, where the government has implemented policies to promote the use of electric vehicles. Incentives such as tax breaks and subsidies have encouraged consumers to consider electric and hybrid small cars as a viable alternative to traditional gasoline-powered vehicles. Another trend in the market is the growing popularity of small SUVs. While small cars remain the dominant segment, there has been a noticeable shift towards small SUVs in recent years. This can be attributed to the increasing demand for vehicles with higher ground clearance and a more rugged appearance. Small SUVs offer the practicality and versatility of larger SUVs, but with a smaller footprint and better fuel efficiency. This trend is driven by both urban and rural consumers who value the combination of compact size and off-road capabilities.

Local special circumstances: Zambia's road infrastructure presents unique challenges for small car owners. Many roads in the country are poorly maintained, with potholes and uneven surfaces. This can make driving a small car uncomfortable and potentially damaging to the vehicle. As a result, consumers in Zambia often prioritize durability and ruggedness when choosing a small car. Manufacturers that can offer vehicles with robust suspension systems and higher ground clearance are likely to have an advantage in this market.

Underlying macroeconomic factors: The growth of the Small Cars market in Zambia can be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, resulting in an increase in disposable income for many consumers. This has allowed more people to afford personal vehicles, leading to a higher demand for small cars. Additionally, the government's efforts to improve road infrastructure and expand access to credit have made car ownership more accessible to a wider population. In conclusion, the Small Cars market in Zambia is developing in response to customer preferences for affordable and fuel-efficient vehicles. The increasing demand for electric and hybrid cars, as well as small SUVs, reflects global trends towards eco-friendly and versatile transportation options. However, the challenging road conditions in Zambia present a unique set of circumstances that manufacturers must consider when targeting this market. Overall, the growth of the Small Cars market in Zambia is supported by favorable macroeconomic factors, including rising disposable income and government initiatives to improve road infrastructure and access to credit.

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).