Small Cars - United Kingdom

United Kingdom

Revenue in the Small Cars market is projected to reach €5,953m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.58%, resulting in a projected market volume of €6,127m by 2029.
Small Cars market unit sales are expected to reach 384.4k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to €16k.
From an international perspective it is shown that the most revenue will be generated in China (€12,320m in 2024).

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

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Analyst Opinion

The Small Cars market in United Kingdom has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the Small Cars market in United Kingdom is the shift in customer preferences towards more compact and fuel-efficient vehicles. With rising fuel prices and increasing awareness about environmental issues, consumers are opting for smaller cars that offer better fuel efficiency and lower emissions. Additionally, the compact size of these cars makes them easier to maneuver in congested urban areas and find parking spaces, which is particularly important in the densely populated cities of United Kingdom.

Trends in the market: Another trend in the Small Cars market in United Kingdom is the increasing demand for electric and hybrid vehicles. As the government and environmental organizations promote the use of clean energy and reduce carbon emissions, more consumers are considering electric and hybrid cars as a viable alternative to traditional petrol and diesel vehicles. The advancements in battery technology and the expanding charging infrastructure in United Kingdom have also contributed to the growing popularity of electric and hybrid small cars.

Local special circumstances: The high population density and limited space in United Kingdom's cities have created a need for smaller vehicles. In cities like London, where there are congestion charges and limited parking spaces, small cars are the preferred choice for many residents. Additionally, the narrow streets and tight corners in older parts of the cities make it more practical to drive smaller cars.

Underlying macroeconomic factors: The economic stability and rising disposable incomes in United Kingdom have also contributed to the growth of the Small Cars market. As consumers have more purchasing power, they are more likely to invest in a car that suits their needs and preferences. The availability of financing options and attractive deals from car manufacturers have also made small cars more affordable and accessible to a wider range of consumers. In conclusion, the Small Cars market in United Kingdom is experiencing growth due to the shift in customer preferences towards compact and fuel-efficient vehicles, the increasing demand for electric and hybrid cars, the local special circumstances such as limited space in cities, and the underlying macroeconomic factors such as economic stability and rising disposable incomes. As these trends continue, it is expected that the Small Cars market in United Kingdom will continue to expand in the coming years.

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).