SUVs - Dominican Republic

Dominican Republic

In 2024, the projected revenue in the SUVs market in the Dominican Republic is estimated to reach US$30m.
It is expected to experience an annual growth rate of 13.91% (CAGR 2024-2028), resulting in a projected market volume of US$51m by 2028.
By that time, the unit sales in the SUVs market are expected to reach 1,167.0vehicles.
The volume weighted average price of SUVs market in the Dominican Republic market segment is projected to be US$44k in 2024.
When compared internationally, it is noteworthy that United States is anticipated to generate the highest revenue, amounting to US$275bn in 2024.

"The Dominican Republic has witnessed a surge in demand for SUVs due to its rugged terrain and the growing preference for larger, more versatile vehicles among consumers."

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

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Analyst Opinion

The SUVs market in Dominican Republic is experiencing significant growth and development in recent years.

Customer preferences: Customers in Dominican Republic have shown a strong preference for SUVs due to their versatility, spaciousness, and ruggedness. SUVs are highly popular among families and individuals who value comfort and safety on the road. Additionally, the high ground clearance and powerful engines of SUVs make them suitable for navigating the country's diverse terrain, including both urban and rural areas.

Trends in the market: One of the key trends in the SUVs market in Dominican Republic is the increasing demand for compact and mid-size SUVs. These smaller SUVs offer a balance between fuel efficiency and practicality, making them ideal for urban driving conditions. With the rise in urbanization and the need for more compact vehicles, compact and mid-size SUVs have become a popular choice among consumers. Another trend in the market is the growing popularity of electric and hybrid SUVs. As environmental concerns become more prominent, consumers are increasingly looking for greener alternatives. Electric and hybrid SUVs offer lower emissions and better fuel efficiency, making them attractive options for environmentally conscious buyers. The government of Dominican Republic has also implemented incentives and subsidies to encourage the adoption of electric and hybrid vehicles, further driving the demand for these types of SUVs.

Local special circumstances: One of the factors contributing to the growth of the SUVs market in Dominican Republic is the country's improving infrastructure. The government has been investing in road development and maintenance, making it easier for SUV owners to navigate the roads. Additionally, the country's growing tourism industry has led to an increase in demand for SUV rentals, as tourists prefer the comfort and versatility of SUVs for exploring the country's attractions.

Underlying macroeconomic factors: The Dominican Republic has experienced steady economic growth in recent years, leading to an increase in disposable income for many consumers. As a result, more people are able to afford SUVs, which are generally priced higher than sedans or hatchbacks. The availability of financing options and affordable interest rates have also made it easier for consumers to purchase SUVs. In conclusion, the SUVs market in Dominican Republic is developing due to customer preferences for versatile and spacious vehicles, the trend towards compact and electric/hybrid SUVs, the improving infrastructure, and the country's growing economy. With these factors in play, the SUVs market is expected to continue its growth trajectory in the coming years.

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).