Small Cars - Germany

  • Germany
  • Revenue in the Small Cars market is projected to reach US$6,140m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -3.52%, resulting in a projected market volume of US$5,320m by 2028.
  • Small Cars market unit sales are expected to reach 303.6k vehicles in 2028.
  • The volume weighted average price of Small Cars market in 2024 is expected to amount to US$18k.
  • From an international perspective it is shown that the most revenue will be generated in China (US$16,330m in 2024).

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

 
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Analyst Opinion

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

Customer preferences:
Customers in Germany have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular among urban dwellers who value easy maneuverability and parking in crowded city streets. Additionally, the increasing awareness of environmental issues has also contributed to the growing demand for small cars, as they are generally more fuel-efficient and emit fewer emissions compared to larger vehicles.

Trends in the market:
One of the key trends in the Small Cars market in Germany is the increasing adoption of electric and hybrid small cars. With the German government's push for cleaner and greener transportation, there has been a surge in the demand for electric and hybrid vehicles. This trend is expected to continue as more automakers introduce new models with improved battery technology and longer driving ranges. The availability of government incentives and subsidies for electric vehicles has also played a significant role in driving the growth of this segment in the market. Another trend in the Small Cars market in Germany is the rise of car-sharing services. With the increasing popularity of car-sharing platforms, such as Car2Go and DriveNow, many urban dwellers are opting to use shared small cars instead of owning their own vehicles. This trend is driven by the convenience and cost-effectiveness of car-sharing, as users can easily access a vehicle when needed without the burden of ownership costs, such as insurance and maintenance. The rise of car-sharing services has led to a shift in consumer behavior, with many individuals choosing to forgo car ownership altogether.

Local special circumstances:
Germany has a well-developed public transportation system, which includes extensive networks of trains, trams, and buses. This, coupled with the availability of car-sharing services, has made it easier for individuals to rely on alternative modes of transportation instead of owning a car. Additionally, the high population density in urban areas has also contributed to the preference for small cars, as they are more practical and easier to park in crowded city streets.

Underlying macroeconomic factors:
The German economy has been performing well in recent years, with strong GDP growth and low unemployment rates. This has led to increased consumer confidence and disposable income, which in turn has fueled the demand for small cars. The availability of favorable financing options and low interest rates has also made it easier for consumers to purchase small cars. In conclusion, the Small Cars market in Germany is experiencing growth due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing adoption of electric and hybrid small cars, as well as the rise of car-sharing services, are key trends driving the market. Local special circumstances, such as a well-developed public transportation system and high population density, have further contributed to the popularity of small cars. The strong macroeconomic factors, including a robust economy and favorable financing options, have also played a significant role in the market's growth.

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).

Overview

  • Unit Sales
  • Analyst Opinion
  • Technical Specifications
  • Revenue
  • Price
  • Global Comparison
  • Methodology
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