SUVs - Central Africa

Central Africa

The projected revenue in the SUVs market for the country in Central Africa is expected to reach US$183m in 2024.
It is anticipated that the revenue will demonstrate an annual growth rate (CAGR 2024-2028) of 15.82%, resulting in a projected market volume of US$329m by 2028.
In line with this growth, the unit sales of SUVs market in the market segment are expected to reach 9.1k vehicles in 2028.
Furthermore, the volume weighted average price of SUVs market in the market segment for Central Africa is projected to be US$36k in 2024.
This figure reflects the average price of SUVs market taking into account the different volumes of sales.
Considering the international perspective, it is evident that United States is expected to generate the highest revenue in the SUVs market, with an estimated amount of US$275bn in 2024.
This highlights the significant role of the United States in the global SUVs market.
Central Africa's growing middle class has fueled a surge in SUV sales, reflecting a desire for status and ruggedness in the region.

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

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Analyst Opinion

The SUVs market in Central Africa is experiencing significant growth and development, driven by various factors such as changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards SUVs in Central Africa. This can be attributed to several factors. Firstly, SUVs are known for their versatility and capability to handle different terrains, which is particularly appealing in the diverse landscapes of Central Africa. Additionally, SUVs offer a sense of safety and security, which is highly valued by customers in this region. Furthermore, SUVs are often seen as a status symbol and a reflection of social status, leading to increased demand among affluent individuals.

Trends in the market: One of the key trends in the SUVs market in Central Africa is the growing popularity of compact SUVs. These smaller-sized SUVs are more fuel-efficient and easier to maneuver in urban areas with limited parking space. As urbanization continues to accelerate in Central Africa, compact SUVs have become a preferred choice for customers who want the benefits of an SUV without compromising on practicality. Another trend in the market is the increasing demand for SUVs with advanced technology features. Central African customers are becoming more tech-savvy and are seeking vehicles that offer connectivity, entertainment, and safety features. This trend is driving automakers to incorporate the latest technology innovations into their SUV models to cater to the evolving customer preferences.

Local special circumstances: Central Africa is home to diverse terrains, including rugged landscapes and unpaved roads. This presents unique challenges for transportation, making SUVs a practical choice for many customers in the region. The higher ground clearance and robust construction of SUVs make them better suited to navigate these challenging road conditions compared to traditional sedans or hatchbacks. Additionally, Central Africa has a growing middle class with increasing purchasing power. As disposable incomes rise, more individuals are able to afford SUVs, contributing to the growth of the market. Furthermore, the perception of SUVs as a symbol of prestige and social status has also fueled demand among the affluent population in the region.

Underlying macroeconomic factors: The development of the SUVs market in Central Africa is also influenced by underlying macroeconomic factors. Economic growth and stability in the region have led to an increase in consumer spending power, enabling more individuals to afford SUVs. Moreover, favorable government policies and initiatives to promote the automotive industry have attracted investments from global automakers, leading to a wider range of SUV models available in the market. In conclusion, the SUVs market in Central Africa is experiencing growth and development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The popularity of SUVs can be attributed to their versatility, safety features, and status symbol appeal. The market is witnessing a rise in demand for compact SUVs and vehicles with advanced technology features. The diverse terrains and growing middle class in Central Africa, coupled with favorable macroeconomic conditions, are driving the growth of the SUVs market in the region.

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).