SUVs - Zambia

Zambia

Revenue in the SUVs market is projected to reach US$23m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.19%, resulting in a projected market volume of US$23m by 2029.
SUVs market unit sales are expected to reach 427.0vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$53k.
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 Zambia has been experiencing significant growth in recent years. Customer preferences have shifted towards SUVs due to their versatility and practicality.

Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of the SUVs market in Zambia. Customer preferences in Zambia have played a crucial role in the growth of the SUVs market. SUVs are favored by customers due to their spaciousness, off-road capabilities, and higher seating position, which provides a sense of safety on Zambia's sometimes challenging road conditions.

Moreover, SUVs are seen as a status symbol and a symbol of success, leading to increased demand for these vehicles among the middle and upper classes in Zambia. Trends in the SUVs market in Zambia have been influenced by global and regional market trends. The rise of SUVs as the preferred vehicle type worldwide has also had an impact on the Zambian market.

As SUVs have become more popular globally, manufacturers have responded by introducing a wider range of SUV models to cater to different customer preferences and budgets. This has increased the availability and affordability of SUVs in Zambia, further driving their market growth. Local special circumstances have also contributed to the development of the SUVs market in Zambia.

The country's vast and diverse terrain, including rural areas and national parks, necessitates vehicles that can handle off-road conditions. SUVs are well-suited for these environments, making them a practical choice for Zambian consumers. Additionally, the growing tourism industry in Zambia has increased the demand for SUVs, as tourists often prefer these vehicles for their comfort and ability to navigate different terrains.

Underlying macroeconomic factors have also played a role in the growth of the SUVs market in Zambia. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer purchasing power. As a result, more Zambians are able to afford SUVs, contributing to the market's expansion.

Furthermore, the availability of financing options and attractive loan terms have made SUVs more accessible to a wider range of consumers in Zambia. In conclusion, the SUVs market in Zambia has seen significant growth due to customer preferences, global and regional market trends, local special circumstances, and underlying macroeconomic factors. The practicality, versatility, and status associated with SUVs have made them a popular choice among Zambian consumers.

As the country's economy continues to grow and more financing options become available, the SUVs market is expected to further expand in Zambia.

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).