SUVs - Ethiopia | Statista Market Forecast

SUVs - Ethiopia

Ethiopia

Highlights

Revenue in the SUVs market is projected to reach US$32m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.70%, resulting in a projected market volume of US$33m by 2029.
SUVs market unit sales are expected to reach 620.0vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$54k.
From an international perspective it is shown that the most revenue will be generated United States (US$333bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SUVs market in Ethiopia has been steadily growing over the past few years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Ethiopia, customers are increasingly opting for SUVs due to their versatility and ruggedness. SUVs are seen as a practical choice for both urban and rural areas, as they offer ample space for passengers and cargo, and can handle rough terrains. Additionally, SUVs are often perceived as a status symbol, representing wealth and success. As the middle class in Ethiopia continues to expand, more people are able to afford SUVs and are choosing them as their preferred mode of transportation.

Trends in the market: One of the key trends in the SUVs market in Ethiopia is the increasing demand for compact and mid-size SUVs. These vehicles offer a balance between size and fuel efficiency, making them popular among urban dwellers who want a spacious vehicle without compromising on fuel economy. Another trend is the growing popularity of luxury SUVs, as more affluent consumers seek high-end vehicles with advanced features and comfort.

Local special circumstances: Ethiopia's challenging road conditions and lack of proper infrastructure make SUVs a practical choice for many residents. The country has a mix of paved and unpaved roads, and SUVs are better equipped to handle the rough terrains and potholes that are common in Ethiopia. Additionally, SUVs have a higher ground clearance, which allows them to navigate flooded roads during the rainy season.

Underlying macroeconomic factors: The growing SUVs market in Ethiopia can also be attributed to the country's improving economy and rising disposable income. Ethiopia has experienced strong economic growth in recent years, which has led to an increase in consumer spending power. As more people have the means to purchase vehicles, the demand for SUVs has risen. Furthermore, the government of Ethiopia has implemented policies to support the automotive industry, including the reduction of import taxes on vehicles. This has made SUVs more affordable for consumers, further driving the market growth. In conclusion, the SUVs market in Ethiopia is developing due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As more people in Ethiopia seek versatile and rugged vehicles, the demand for SUVs is expected to continue growing in the coming years.

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).