Passenger Cars - Latvia

Latvia

Revenue in the Passenger Cars market is projected to reach US$543.3m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.54%, resulting in a projected market volume of US$555.1m by 2028.
The market's largest segment is SUVs with a projected market volume of US$302.2m in 2024.
Passenger Cars market unit sales are expected to reach 17.19k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$31.91k in 2024.
With a vehicle unit sales share of 27.5% in 2024, Other is expected to have one of the highest market share in the selected region.
The value market share of the make Other in the selected region is expected to stand at 37.1% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Latvia has witnessed significant growth in recent years, driven by changing customer preferences, evolving market trends, and local special circumstances. Customer preferences in the Passenger Cars market in Latvia have shifted towards more fuel-efficient and environmentally-friendly vehicles.

This is in line with global trends, as consumers become more conscious of the impact of their choices on the environment. As a result, there has been an increased demand for electric and hybrid cars in Latvia. Additionally, customers are also seeking vehicles with advanced safety features and modern technology, such as connectivity options and autonomous driving capabilities.

Trends in the market reflect a growing interest in electric and hybrid cars, as well as a shift towards online car shopping. The availability of government incentives and subsidies for electric vehicles has encouraged consumers to consider these options. Furthermore, the increasing number of charging stations across the country has alleviated concerns about the limited range of electric cars.

In terms of online car shopping, consumers are increasingly using digital platforms to research and compare different car models, as well as to complete the purchase process. This trend has been accelerated by the COVID-19 pandemic, which has limited physical interactions and pushed more consumers towards online shopping. Local special circumstances, such as the high cost of fuel and limited public transportation options in certain areas, have also contributed to the growth of the Passenger Cars market in Latvia.

The relatively high cost of fuel has made owning a car a more cost-effective option for many individuals, especially those who commute long distances or live in rural areas. Additionally, the limited public transportation options in certain regions have made car ownership a necessity for many residents. Underlying macroeconomic factors, such as a stable economy and increasing disposable income, have also played a role in the growth of the Passenger Cars market in Latvia.

As the economy continues to grow, more individuals have the financial means to purchase cars. This has led to an increase in car ownership and a higher demand for passenger vehicles. Overall, the Passenger Cars market in Latvia is experiencing growth due to changing customer preferences, evolving market trends, local special circumstances, and underlying macroeconomic factors.

The shift towards more fuel-efficient and environmentally-friendly vehicles, the rise of online car shopping, the high cost of fuel, limited public transportation options, and a stable economy with increasing disposable income are all contributing to the development 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).