SUVs - Brazil

Brazil

Revenue in the SUVs market is projected to reach US$18bn 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$17bn by 2029.
SUVs market unit sales are expected to reach 415.2k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$41k.
From an international perspective it is shown that the most revenue will be generated in the United States (US$333bn in 2024).

Key regions: United States, Germany, United Kingdom, India, China

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Analyst Opinion

The SUVs market in Brazil has experienced significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: In Brazil, customers have shown a strong preference for SUVs due to their versatility, spaciousness, and higher driving position. SUVs are seen as a status symbol and are often associated with a more luxurious lifestyle. Additionally, the rugged terrain and poor road conditions in certain regions of Brazil make SUVs a practical choice for many consumers.

Trends in the market: One of the key trends in the SUVs market in Brazil is the increasing demand for compact and mid-size SUVs. These smaller SUVs offer a more affordable option for consumers who want the benefits of an SUV but at a lower price point. Additionally, the rising popularity of electric and hybrid vehicles globally has also influenced the SUVs market in Brazil, with more manufacturers introducing electric and hybrid SUV models to cater to environmentally conscious consumers.

Local special circumstances: Brazil is known for its high import taxes and protectionist policies, which have a significant impact on the SUVs market. The high import taxes make imported SUVs more expensive, leading many consumers to opt for locally manufactured SUVs. This has prompted several automakers to invest in local production facilities, boosting the domestic SUV manufacturing industry. Additionally, the Brazilian government has implemented incentives and tax breaks for manufacturers who produce more fuel-efficient vehicles, further driving the demand for SUVs.

Underlying macroeconomic factors: The growth of the SUVs market in Brazil can also be attributed to several underlying macroeconomic factors. Brazil has experienced a period of economic stability and rising middle-class income, which has increased consumer purchasing power. As a result, more consumers are able to afford SUVs and are willing to invest in larger, more expensive vehicles. Furthermore, the low interest rates in Brazil have made it more affordable for consumers to finance their SUV purchases, further driving demand in the market. In conclusion, the SUVs market in Brazil has seen significant growth due to changing customer preferences, market trends, and local special circumstances. The preference for SUVs, the increasing demand for compact and mid-size models, and the influence of global trends such as electric and hybrid vehicles have all contributed to the market's development. Additionally, the high import taxes and protectionist policies in Brazil, along with the country's economic stability and rising middle-class income, have further fueled the growth of the SUVs 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).