Small Cars - South Africa

South Africa

In 2024, the projected revenue in South Africa's Small Cars market is estimated to reach €1,449m.
This market segment is expected to exhibit an annual growth rate (CAGR 2024-2028) of 1.30%, leading to a projected market volume of €1,526m by 2028.
Furthermore, it is anticipated that the unit sales of Small Cars market in South Africa will reach 99.7k vehicles by 2028.
The volume weighted average price of Small Cars market in the country is expected to be €15k in 2024.
From an international standpoint, it is noteworthy that China is projected to generate the highest revenue in the Small Cars market, amounting to €12,410m in 2024.
Despite economic challenges, the demand for small cars in South Africa remains strong due to their affordability and fuel efficiency.

Key regions: Europe, Worldwide, China, United Kingdom, United States

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Analyst Opinion

The Small Cars market in South Africa has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development.

Customer preferences in South Africa have shifted towards smaller, more fuel-efficient vehicles. This is partly due to rising fuel costs and increasing environmental concerns. Consumers are increasingly looking for cars that offer good fuel economy without compromising on performance or comfort.

As a result, the demand for small cars has been steadily increasing. Trends in the market indicate that South African consumers are also placing a greater emphasis on safety features and technological advancements in their small car purchases. With advancements in automotive technology, small cars are now equipped with features such as advanced driver assistance systems, touchscreen infotainment systems, and connectivity options.

These features are becoming increasingly important to consumers, especially the younger generation who value technology and connectivity in their vehicles. Local special circumstances in South Africa have also played a role in the development of the Small Cars market. The country has a high population density in urban areas, leading to congested roads and limited parking spaces.

Small cars are more maneuverable and easier to park in these conditions, making them a practical choice for many South African consumers. Additionally, the affordability of small cars compared to larger vehicles has made them more accessible to a wider range of consumers. Underlying macroeconomic factors have also contributed to the growth of the Small Cars market in South Africa.

The country has experienced a period of economic stability and growth, resulting in an expanding middle class with increased purchasing power. This has led to a greater demand for affordable transportation options, with small cars being a popular choice. In conclusion, the Small Cars market in South Africa is developing due to a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Consumers are increasingly opting for smaller, more fuel-efficient vehicles that offer safety features and technological advancements. The country's high population density, limited parking spaces, and economic stability have also contributed to the growth of the market.

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).