Small Cars - Australia

Australia

Revenue in the Small Cars market is projected to reach US$1,120m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.79%, resulting in a projected market volume of US$1,569m by 2028.
Small Cars market unit sales are expected to reach 101.6k vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$15k.
From an international perspective it is shown that the most revenue will be generated in China (US$13,380m in 2024).

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

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Analyst Opinion

The Small Cars market in Australia has been experiencing significant growth in recent years.

Customer preferences: One of the key reasons for the growth in the Small Cars market in Australia is the changing preferences of customers. Australian consumers are increasingly looking for smaller and more fuel-efficient vehicles that are easier to maneuver in urban environments. Small cars offer these advantages, making them an attractive option for many buyers. Additionally, the rising cost of living and limited parking spaces in cities have also contributed to the growing demand for small cars.

Trends in the market: One of the major trends in the Small Cars market in Australia is the increasing popularity of electric and hybrid vehicles. As consumers become more environmentally conscious, there has been a shift towards cleaner and more sustainable modes of transportation. Electric and hybrid small cars offer lower emissions and reduced fuel consumption, making them an appealing choice for eco-conscious buyers. This trend is expected to continue as the government and manufacturers continue to promote electric and hybrid vehicles through incentives and subsidies. Another trend in the Small Cars market in Australia is the growing demand for advanced safety features. Consumers are increasingly prioritizing safety when purchasing a vehicle, and small cars are no exception. Manufacturers have responded to this demand by equipping their small car models with the latest safety technologies, such as autonomous emergency braking, lane departure warning, and blind-spot monitoring. These features not only enhance the safety of small cars but also appeal to buyers who are looking for a reliable and secure mode of transportation.

Local special circumstances: Australia's unique geography and climate also play a role in the development of the Small Cars market. The country's large urban centers, such as Sydney and Melbourne, have dense populations and limited parking spaces. This makes small cars a practical choice for city dwellers who need a compact vehicle that is easy to park and maneuver in tight spaces. Additionally, Australia's high fuel prices and long distances between cities make fuel efficiency an important consideration for many buyers. Small cars, with their lower fuel consumption, are well-suited to meet this demand.

Underlying macroeconomic factors: The strong Australian economy has also contributed to the growth of the Small Cars market. Low unemployment rates, rising disposable incomes, and favorable interest rates have made it easier for consumers to purchase small cars. Additionally, the government's focus on infrastructure development, including the construction of new roads and highways, has improved accessibility and connectivity, further driving the demand for small cars. In conclusion, the Small Cars market in Australia is experiencing growth due to changing customer preferences, including a shift towards smaller and more fuel-efficient vehicles. The increasing popularity of electric and hybrid cars, as well as the demand for advanced safety features, are also driving the market. Australia's unique geography and climate, along with a strong economy, further contribute to the growth of the Small Cars market in the country.

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).