Large Cars - South Africa

South Africa

Revenue in the Large Cars market is projected to reach US$740m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.97%, resulting in a projected market volume of US$800m by 2028.
Large Cars market unit sales are expected to reach 19,170.0vehicles in 2028.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$41k.
From an international perspective it is shown that the most revenue will be generated in China (US$106,900m in 2024).

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

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Analyst Opinion

The Large Cars market in South Africa has been experiencing significant development in recent years.

Customer preferences: Customers in South Africa have shown a strong preference for large cars, particularly SUVs and luxury sedans. This can be attributed to several factors. Firstly, the growing middle class in the country has increased purchasing power and a desire for more spacious and comfortable vehicles. Additionally, the rugged terrain and long distances in South Africa make larger cars more practical and suitable for the local conditions.

Trends in the market: One of the key trends in the Large Cars market in South Africa is the increasing demand for SUVs. SUVs offer a combination of power, versatility, and spaciousness, which resonates with the preferences of South African customers. This trend is in line with the global market, where SUVs have been gaining popularity. Another trend in the market is the growing demand for luxury sedans. As the economy in South Africa continues to grow, there is an increasing number of affluent individuals who are willing to invest in high-end vehicles that offer superior comfort and performance.

Local special circumstances: South Africa has a unique set of circumstances that contribute to the development of the Large Cars market. Firstly, the country's infrastructure is well-suited for larger vehicles, with wide roads and ample parking space. This makes it easier for customers to navigate and park their large cars. Additionally, South Africa has a strong car culture, with many individuals valuing the status and prestige associated with owning a large car. This cultural aspect further drives the demand for large cars in the country.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Large Cars market in South Africa. Firstly, the country has experienced steady economic growth in recent years, which has increased disposable incomes and consumer spending. This has allowed more people to afford large cars and has driven demand in the market. Additionally, low interest rates and favorable financing options have made it easier for customers to purchase large cars. Finally, the depreciation of the South African rand against major currencies has made imported luxury vehicles more affordable, further boosting the market. Overall, the Large Cars market in South Africa is experiencing significant development due to customer preferences for spacious and comfortable vehicles, the growing demand for SUVs and luxury sedans, local special circumstances such as infrastructure and car culture, and underlying macroeconomic factors such as economic growth and favorable financing options.

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).