Passenger Cars - Canada

Canada

Revenue in the Passenger Cars market is projected to reach US$40.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -4.53%, resulting in a projected market volume of US$33.5bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$22.5bn in 2024.
Passenger Cars market unit sales are expected to reach 983.40k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$33.72k in 2024.
With a vehicle unit sales share of 26.3% 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 33.1% 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 Canada has been experiencing significant growth in recent years.

Customer preferences: Customers in Canada have shown a strong preference for passenger cars that are fuel-efficient and environmentally friendly. This trend is driven by increasing awareness of climate change and the desire to reduce carbon emissions. As a result, there has been a growing demand for electric and hybrid vehicles in the country. Additionally, customers in Canada value safety features and advanced technology in their cars, such as autonomous driving capabilities and connected car features.

Trends in the market: One of the key trends in the Canadian Passenger Cars market is the rise of electric vehicles (EVs). The government of Canada has been actively promoting the adoption of EVs through various incentives and rebates, which has led to an increase in the sales of electric cars. Moreover, major automakers have been introducing new electric models in the Canadian market to cater to the growing demand. This trend is expected to continue in the coming years as the government aims to reduce greenhouse gas emissions and achieve its climate change targets. Another trend in the market is the shift towards smaller and more fuel-efficient cars. Rising fuel prices and increasing environmental concerns have led customers to opt for smaller cars that offer better fuel economy. Compact and subcompact cars have become popular choices among Canadian consumers due to their affordability and efficiency. Additionally, there has been a growing demand for crossover SUVs, which offer a combination of the practicality of an SUV and the fuel efficiency of a car.

Local special circumstances: One of the unique factors influencing the Passenger Cars market in Canada is the geography and climate of the country. Canada experiences harsh winters, which can make driving conditions challenging. As a result, customers in Canada prioritize features such as all-wheel drive and winter tires to ensure safety and performance in snowy and icy conditions. This has led to an increased demand for vehicles with all-wheel drive capabilities, especially in regions with heavy snowfall.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Canada is also influenced by macroeconomic factors such as population growth, income levels, and interest rates. Canada has a growing population, which has contributed to the increasing demand for passenger cars. Additionally, rising disposable incomes have made cars more affordable for a larger segment of the population. Low interest rates have also made it easier for consumers to finance their car purchases, further boosting sales in the market. In conclusion, the Passenger Cars market in Canada is experiencing growth due to customer preferences for fuel-efficient and environmentally friendly vehicles, the rise of electric vehicles, the shift towards smaller and more fuel-efficient cars, the influence of the country's geography and climate, and underlying macroeconomic factors such as population growth and income levels.

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).