Passenger Cars - United Kingdom

United Kingdom

Revenue in the Passenger Cars market is projected to reach ₩63.8tn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.05%, resulting in a projected market volume of ₩83.8tn by 2028.
The market's largest segment is SUVs with a projected market volume of ₩25.4tn in 2024.
Passenger Cars market unit sales are expected to reach 1,951.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to ₩43.70m in 2024.
With a vehicle unit sales share of 36.3% 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 32.1% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (₩731tn in 2024).

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

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Analyst Opinion

The Passenger Cars market in United Kingdom has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In the United Kingdom, customers have shown a growing preference for smaller, more fuel-efficient vehicles. This can be attributed to several factors, including rising fuel prices and increasing environmental consciousness. As a result, there has been a shift towards compact cars and hybrid or electric vehicles, which offer better fuel efficiency and lower emissions. Additionally, customers are placing greater importance on advanced safety features and technological innovations in their vehicle choices. This includes features such as autonomous driving capabilities, connectivity, and infotainment systems.

Trends in the market: One major trend in the United Kingdom's Passenger Cars market is the increasing popularity of electric vehicles (EVs). The government has implemented various incentives and policies to promote the adoption of EVs, including grants for purchasing electric cars and the development of charging infrastructure. This has led to a surge in EV sales, with more consumers opting for electric vehicles as their primary mode of transportation. Additionally, there has been a rise in the availability and variety of electric car models in the market, further driving the adoption of EVs. Another trend in the market is the rise of car-sharing and ride-hailing services. Companies like Uber and Lyft have gained significant traction in the United Kingdom, providing consumers with convenient and cost-effective alternatives to owning a car. This trend has impacted the Passenger Cars market, as some individuals are choosing to forgo car ownership in favor of using these services. However, it has also created new opportunities for car manufacturers to collaborate with ride-hailing companies and develop vehicles specifically designed for shared mobility.

Local special circumstances: One of the unique factors influencing the Passenger Cars market in the United Kingdom is the uncertainty surrounding Brexit. The country's decision to leave the European Union has created a level of economic and political uncertainty, which has had an impact on consumer confidence and spending. This uncertainty has led to a decline in new car registrations, as consumers are hesitant to make major purchases amidst the uncertain economic climate. However, it is expected that once the Brexit negotiations are finalized, the market will stabilize and consumer confidence will improve.

Underlying macroeconomic factors: The overall growth of the Passenger Cars market in the United Kingdom is also influenced by underlying macroeconomic factors. These include factors such as GDP growth, employment rates, and disposable income levels. When the economy is performing well and individuals have more disposable income, they are more likely to purchase new cars. Conversely, during periods of economic downturn, such as the recent COVID-19 pandemic, consumers may delay or postpone their car purchases, leading to a decline in the market. Therefore, the performance of the Passenger Cars market in the United Kingdom is closely tied to the overall economic conditions 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).