Key regions: United States, Germany, United Kingdom, India, China
The SUVs market in Japan has witnessed significant growth in recent years, driven by changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.
Customer preferences: Japanese customers have increasingly shown a preference for SUVs due to their versatility, spaciousness, and perceived safety features. SUVs offer ample cargo space, making them suitable for family outings and outdoor activities. Moreover, the higher driving position provides a better view of the road, enhancing the feeling of safety and control. Additionally, SUVs often come equipped with advanced safety technologies, which appeal to safety-conscious Japanese consumers.
Trends in the market: One of the key trends in the SUVs market in Japan is the shift towards hybrid and electric SUVs. With growing concerns about environmental sustainability, Japanese customers are increasingly opting for eco-friendly vehicles. Hybrid and electric SUVs offer lower carbon emissions and better fuel efficiency compared to traditional gasoline-powered SUVs. This trend is further supported by government incentives and initiatives to promote the adoption of electric vehicles. Another trend in the market is the introduction of compact SUVs. Compact SUVs offer a balance between the spaciousness and utility of traditional SUVs and the maneuverability and fuel efficiency of smaller cars. These vehicles are particularly popular among urban dwellers who value practicality and ease of parking in congested city environments.
Local special circumstances: Japan's aging population has also contributed to the growth of the SUVs market. Older individuals often prefer vehicles with higher seating positions, as they are easier to get in and out of. SUVs provide the desired comfort and accessibility, making them a popular choice among the elderly population. Furthermore, Japan's unique geography and climate play a role in the popularity of SUVs. The country experiences heavy snowfall in certain regions during winter, making SUVs with four-wheel drive capabilities highly desirable. These vehicles offer better traction and stability on slippery roads, ensuring a safer driving experience in adverse weather conditions.
Underlying macroeconomic factors: The Japanese government's push for infrastructure development and investment in transportation networks has also contributed to the growth of the SUVs market. As road conditions improve and more highways are constructed, SUVs become a preferred choice for long-distance travel and commuting. Additionally, favorable financing options and competitive pricing have made SUVs more affordable and accessible to a wider range of consumers. This has further fueled the demand for SUVs in Japan. In conclusion, the SUVs market in Japan is witnessing significant growth due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The preference for SUVs is driven by their versatility, spaciousness, and perceived safety features. The market is also witnessing a shift towards hybrid and electric SUVs, as well as the introduction of compact SUVs. Japan's aging population, unique geography, and climate further contribute to the popularity of SUVs. Finally, government initiatives, infrastructure development, and favorable financing options are boosting the growth of the SUVs market in Japan.
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).
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