Passenger Cars - Hong Kong

Hong Kong

Revenue in the Passenger Cars market is projected to reach US$1,090.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.11%, resulting in a projected market volume of US$1,661.0m by 2028.
The market's largest segment is SUVs with a projected market volume of US$543.3m in 2024.
Passenger Cars market unit sales are expected to reach 42.30k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$39.30k in 2024.
With a vehicle unit sales share of 23.7% in 2024, Hyundai is expected to have one of the highest market share in the selected region.
The value market share of the make BMW in the selected region is expected to stand at 37.0% 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 Hong Kong has seen significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances. Customer preferences in Hong Kong have shifted towards smaller, more fuel-efficient cars in recent years.

This is largely due to the high cost of living, limited parking spaces, and congested roads in the city. Customers are increasingly looking for compact cars that are easy to maneuver and park in tight spaces, while also offering good fuel economy. This has led to a rise in the popularity of small hatchbacks and compact sedans in the market.

One of the key trends in the Passenger Cars market in Hong Kong is the growing demand for electric vehicles (EVs). With the government's push for cleaner and greener transportation, EV sales have been on the rise. The availability of charging infrastructure and government incentives, such as tax breaks and subsidies, have further accelerated the adoption of EVs in the market.

As a result, more automakers are introducing electric models to cater to this growing demand. Another trend in the market is the increasing popularity of luxury cars. Hong Kong has a high concentration of high-net-worth individuals, and there is a strong demand for premium and luxury vehicles.

Customers in this segment are looking for top-of-the-line features, advanced technology, and superior performance. Luxury car brands have been quick to capitalize on this demand by offering a wide range of models and customization options to cater to the specific preferences of these customers. Local special circumstances, such as the limited availability of parking spaces and high vehicle taxes, have also influenced the development of the Passenger Cars market in Hong Kong.

The scarcity of parking spaces in the city has made compact cars more desirable, as they are easier to park in tight spots. Additionally, the high taxes on vehicle purchases, including a first registration tax based on the vehicle's value, have made it more expensive to buy and own a car in Hong Kong. This has led to a preference for smaller, more affordable cars among the general population.

Underlying macroeconomic factors, such as the overall economic growth and disposable income levels, also play a role in the development of the Passenger Cars market in Hong Kong. As the economy continues to grow and disposable incomes rise, more people are able to afford cars. This has led to an increase in car ownership and a higher demand for passenger cars in the market.

In conclusion, the Passenger Cars market in Hong Kong is driven by changing customer preferences, including a shift towards smaller, more fuel-efficient cars and the growing demand for electric and luxury vehicles. Local special circumstances, such as limited parking spaces and high vehicle taxes, also influence the market. The overall economic growth and disposable income levels in Hong Kong further contribute 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).