SUVs - Central America

Central America

Revenue in the SUVs market is projected to reach US$1,391m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.31%, resulting in a projected market volume of US$1,413m by 2029.
SUVs market unit sales are expected to reach 36.9k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$39k.
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 Central America has been experiencing significant growth in recent years. Customer preferences for larger vehicles, increased urbanization, and the region's unique geography have all contributed to this trend.

Additionally, favorable macroeconomic factors have created a conducive environment for the development of the SUVs market. Customer preferences in Central America have shifted towards larger vehicles, including SUVs. This can be attributed to several factors.

Firstly, SUVs provide a sense of safety and security, which is especially important in a region with varying levels of crime and road conditions. Secondly, SUVs offer more space and versatility, making them suitable for both urban and rural environments. Finally, SUVs are seen as a status symbol, reflecting the growing middle class in Central America.

Trends in the SUVs market in Central America are also influenced by the region's unique geography. Central America is known for its diverse landscapes, including mountains, jungles, and coastal areas. SUVs are well-suited to navigate these challenging terrains, making them a popular choice among consumers.

Additionally, the region's tropical climate often requires vehicles with good ground clearance and off-road capabilities, further driving the demand for SUVs. Local special circumstances in Central America also contribute to the growth of the SUVs market. Limited public transportation infrastructure and unreliable public transportation systems in some countries have led to an increased reliance on private vehicles.

This has further fueled the demand for SUVs, which offer comfort, convenience, and the ability to transport larger groups of people or goods. Underlying macroeconomic factors have also played a role in the development of the SUVs market in Central America. The region has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer purchasing power.

As a result, more people are able to afford SUVs, which are typically more expensive than smaller vehicles. Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase SUVs, further stimulating market growth. In conclusion, the SUVs market in Central America is experiencing significant growth due to customer preferences for larger vehicles, the region's unique geography, local special circumstances, and favorable macroeconomic factors.

As the region continues to develop and urbanize, it is expected that the demand for SUVs will continue to rise.

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).