Passenger Cars - Peru

Peru

Revenue in the Passenger Cars market is projected to reach US$2,687.0m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.07%, resulting in a projected market volume of US$2,804.0m by 2028.
The market's largest segment is SUVs with a projected market volume of US$960.3m in 2024.
Passenger Cars market unit sales are expected to reach 110.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$25.24k in 2024.
With a vehicle unit sales share of 23.9% in 2024, Toyota is expected to have one of the highest market share in the selected region.
The value market share of the make Toyota in the selected region is expected to stand at 26.2% 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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Region comparison

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Analyst Opinion

The Passenger Cars market in Peru has experienced significant growth in recent years.

Customer preferences: Peruvian customers have shown a strong preference for compact and mid-size cars, which offer a good balance between affordability and practicality. These types of vehicles are well-suited for navigating the country's narrow streets and congested urban areas. Additionally, Peruvian consumers are increasingly interested in eco-friendly options, such as hybrid and electric vehicles, as they become more aware of environmental issues. This shift in preferences is in line with global trends towards more sustainable transportation options.

Trends in the market: One of the key trends in the Peruvian Passenger Cars market is the increasing popularity of SUVs. These vehicles offer a higher driving position and more space, which appeals to Peruvian consumers who prioritize comfort and versatility. The demand for SUVs is driven by both urban and rural customers, as they are equally suitable for city driving and off-road adventures in Peru's diverse landscape. Another trend in the market is the growing demand for connected cars, which offer features such as GPS navigation, smartphone integration, and advanced safety systems. Peruvian consumers are increasingly interested in these technologies, as they enhance the overall driving experience and provide added convenience and safety.

Local special circumstances: Peru's geography and infrastructure present unique challenges for the Passenger Cars market. The country's mountainous terrain and unpaved roads require vehicles that are capable of handling rough conditions. As a result, there is a demand for cars with high ground clearance and robust suspension systems. Additionally, Peru's high altitude can affect engine performance, making it necessary for vehicles to have engines that are specifically designed to operate at higher elevations. These factors influence the types of cars that are popular in the Peruvian market and contribute to the unique characteristics of the Passenger Cars segment.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Peru can be attributed to several underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has increased consumer purchasing power and disposable income. This has allowed more Peruvians to afford cars and has driven demand in the market. Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase cars, further stimulating demand. The government has also implemented policies to support the automotive industry, such as tax incentives for the purchase of eco-friendly vehicles. These factors, combined with a growing population and urbanization, have created a favorable environment for the Passenger Cars market to thrive in Peru.

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).