Large Cars - South Korea

South Korea

Revenue in the Large Cars market is projected to reach US$3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.41%, resulting in a projected market volume of US$3bn by 2028.
Large Cars market unit sales are expected to reach 94.2k vehicles in 2028.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$32k.
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 Korea has seen significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: South Korean customers have shown a growing preference for large cars due to their spaciousness, comfort, and advanced features. Large cars are seen as a status symbol and are often associated with luxury and prestige. Additionally, South Koreans value safety and reliability, which are key features offered by large cars.

Trends in the market: One of the key trends in the South Korean Large Cars market is the increasing demand for electric and hybrid vehicles. The government has been actively promoting the adoption of eco-friendly vehicles through various incentives and subsidies. As a result, many automakers have introduced electric and hybrid versions of their large cars to cater to this growing segment. Another trend in the market is the integration of advanced technologies in large cars. South Korean consumers are tech-savvy and value cutting-edge features such as advanced infotainment systems, driver-assistance technologies, and connectivity options. Automakers are incorporating these technologies into their large cars to meet the evolving needs of the customers.

Local special circumstances: South Korea has a well-developed infrastructure for electric vehicles, including a widespread charging network. This has encouraged the adoption of electric and hybrid large cars in the country. Additionally, the government has set ambitious targets for reducing carbon emissions, which has further incentivized the purchase of eco-friendly vehicles.

Underlying macroeconomic factors: The South Korean economy has been growing steadily, and this has had a positive impact on the Large Cars market. Rising disposable incomes and improving living standards have increased the purchasing power of consumers, enabling them to afford large cars. Furthermore, low interest rates and favorable financing options have made it easier for consumers to finance their purchases. In conclusion, the Large Cars market in South Korea is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for electric and hybrid vehicles, the integration of advanced technologies, and the government's support for eco-friendly vehicles have all contributed to the growth of the market. With a strong economy and favorable market conditions, the future looks promising for the Large Cars market in South Korea.

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).