Small Cars - Ethiopia

Ethiopia

Revenue in the Small Cars market is projected to reach US$4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 12.48%, resulting in a projected market volume of US$6m by 2028.
Small Cars market unit sales are expected to reach 398.0vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$14k.
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 Ethiopia is developing at a steady pace, driven by customer preferences for fuel-efficient and affordable vehicles.

Customer preferences: In Ethiopia, customers prefer small cars due to their compact size, which makes them easier to maneuver through congested city streets and narrow roads. Additionally, small cars are more fuel-efficient, which is an important factor for customers in a country where fuel prices can be high. The affordability of small cars also makes them an attractive option for customers with limited budgets.

Trends in the market: One of the key trends in the Small Cars market in Ethiopia is the increasing demand for electric and hybrid vehicles. As the government and international organizations focus on reducing carbon emissions and promoting sustainable transportation, more customers are opting for eco-friendly vehicles. This trend is expected to continue as the government provides incentives for the purchase of electric and hybrid cars. Another trend in the market is the rise of online car sales platforms. With the increasing access to the internet and the convenience it offers, customers are now able to research and purchase small cars online. This has opened up new opportunities for car dealerships and has made the buying process more efficient for customers.

Local special circumstances: Ethiopia has a growing middle class with increasing disposable income, which has contributed to the growth of the Small Cars market. As more people are able to afford personal vehicles, the demand for small cars has increased. Furthermore, the government of Ethiopia has implemented policies to encourage local car manufacturing. This has led to the establishment of local assembly plants, which has boosted the availability of small cars in the market.

Underlying macroeconomic factors: The economic growth in Ethiopia has been a driving force behind the development of the Small Cars market. As the economy continues to grow, more people are entering the middle class and are able to afford small cars. Additionally, the government's focus on infrastructure development, such as the construction of new roads and highways, has improved transportation connectivity in the country. This has further fueled the demand for small cars as people seek more efficient and convenient means of transportation. In conclusion, the Small Cars market in Ethiopia is developing due to customer preferences for fuel-efficient and affordable vehicles, the increasing demand for electric and hybrid cars, the rise of online car sales platforms, the growing middle class, the government's support for local car manufacturing, and the overall economic growth and infrastructure development 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).