SUVs - Tanzania

Tanzania

Revenue in the SUVs market is projected to reach US$26m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.54%, resulting in a projected market volume of US$26m by 2029.
SUVs market unit sales are expected to reach 454.0vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$57k.
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 Tanzania has been experiencing significant growth in recent years, driven by changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Tanzanian customers are increasingly opting for SUVs due to their versatility, spaciousness, and ruggedness. SUVs offer ample seating and cargo space, making them ideal for families and businesses alike. Additionally, SUVs provide a higher driving position, giving drivers a better view of the road and a sense of safety. The growing middle-class population in Tanzania also desires the status and prestige associated with owning an SUV.

Trends in the market: One of the key trends in the SUVs market in Tanzania is the increasing demand for fuel-efficient models. With rising fuel prices and growing environmental concerns, customers are looking for SUVs that offer better fuel economy. Manufacturers have responded to this trend by introducing hybrid and electric SUV models, which are gaining popularity in the Tanzanian market. Another trend in the SUVs market is the integration of advanced technology and features. Tanzanian customers are increasingly seeking SUVs with modern infotainment systems, advanced safety features, and connectivity options. Manufacturers are incorporating these features to cater to the evolving needs and preferences of customers.

Local special circumstances: Tanzania's diverse terrain and road conditions play a significant role in the popularity of SUVs. The country has a mix of well-paved highways and rough off-road tracks, requiring vehicles that can handle different terrains. SUVs with robust suspension systems and high ground clearance are well-suited for navigating Tanzania's challenging roads, making them a preferred choice among customers.

Underlying macroeconomic factors: The growth of the SUVs market in Tanzania can also be attributed to the country's improving economy and increasing disposable income. As the Tanzanian economy continues to grow, more individuals and businesses have the financial means to purchase SUVs. Additionally, the availability of financing options and attractive loan terms has made SUVs more affordable and accessible to a larger segment of the population. In conclusion, the SUVs market in Tanzania is experiencing significant growth due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for SUVs is driven by their versatility, spaciousness, and ruggedness, as well as the desire for fuel-efficient models and advanced technology features. Tanzania's diverse terrain and improving economy further contribute to the popularity of SUVs in the country.

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).