SUVs - South Africa

South Africa

Revenue in the SUVs market is projected to reach US$4,532m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.47%, resulting in a projected market volume of US$4,427m by 2029.
SUVs market unit sales are expected to reach 112.4k 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 South Africa has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing preferences of customers in South Africa. SUVs are known for their spaciousness, versatility, and off-road capabilities, which make them appealing to a wide range of consumers. In addition, SUVs are often seen as status symbols, especially among the middle class, as they are associated with luxury and success. As a result, more and more South African customers are choosing SUVs over traditional sedans and hatchbacks.

Trends in the market: Another trend in the SUVs market in South Africa is the increasing demand for smaller and more fuel-efficient SUVs. This can be attributed to rising fuel prices and a growing awareness of the environmental impact of vehicles. Customers are now looking for SUVs that offer good fuel economy without compromising on performance or comfort. As a result, automakers are introducing more compact SUV models with efficient engines and advanced technologies.

Local special circumstances: South Africa's unique geography and road conditions also contribute to the popularity of SUVs. The country has a diverse terrain, including rugged mountains, sandy beaches, and unpaved roads. SUVs are well-suited for navigating these challenging conditions, providing customers with a sense of safety and confidence. Moreover, South Africa experiences heavy rainfall during certain seasons, which can lead to flooded roads. SUVs with higher ground clearance are better equipped to handle these situations, making them a practical choice for many South African drivers.

Underlying macroeconomic factors: The growing SUVs market in South Africa is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, resulting in an expanding middle class with higher disposable incomes. As a result, more consumers are able to afford SUVs, which are generally priced higher than other types of vehicles. Additionally, the availability of financing options and the introduction of more affordable SUV models have made them more accessible to a wider range of customers. In conclusion, the SUVs market in South Africa is growing due to changing customer preferences, the demand for smaller and more fuel-efficient models, the country's unique geography and road conditions, and underlying macroeconomic factors. As SUVs continue to gain popularity, automakers are likely to introduce more innovative and affordable models to cater to the evolving needs of South African customers.

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).