Small Cars - Finland

Finland

Revenue in the Small Cars market is projected to reach US$231m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -1.68%, resulting in a projected market volume of US$216m by 2028.
Small Cars market unit sales are expected to reach 13,450.0vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$16k.
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 Finland has been experiencing steady growth and development in recent years. Customer preferences, local special circumstances, and underlying macroeconomic factors have all contributed to this trend.

Customer preferences in Finland have shifted towards smaller, more fuel-efficient vehicles in recent years. This is partly due to increasing concerns about environmental sustainability and the rising cost of fuel. Small cars are generally more fuel-efficient and emit fewer greenhouse gases compared to larger vehicles.

Additionally, smaller cars are easier to maneuver and park in Finland's crowded urban areas, making them a practical choice for many consumers. The demand for small cars is also driven by their affordability, as they tend to have lower purchase prices and maintenance costs compared to larger vehicles. Trends in the market indicate that small cars are becoming increasingly popular among Finnish consumers.

The market has seen a rise in the number of small car models available, with both domestic and international manufacturers introducing new models to cater to the growing demand. This increased competition has led to improved features and technology in small cars, making them more attractive to consumers. Additionally, advancements in electric and hybrid technology have made small cars more environmentally friendly, further driving their popularity.

Local special circumstances in Finland have also played a role in the development of the small cars market. The country has a well-developed public transportation system, which reduces the need for large, family-sized vehicles. Many Finnish consumers rely on public transportation for their daily commute, and only require a small car for occasional use.

Additionally, Finland has a high population density in urban areas, which makes small cars a practical choice for navigating the crowded streets and limited parking spaces. Underlying macroeconomic factors have also contributed to the growth of the small cars market in Finland. The country has a stable economy, with a high standard of living and disposable income levels.

This allows consumers to afford the purchase and maintenance costs associated with small cars. Additionally, Finland has a strong automotive industry, with domestic manufacturers producing high-quality small cars that cater to the preferences and needs of Finnish consumers. In conclusion, the Small Cars market in Finland is developing due to customer preferences for fuel-efficient and affordable vehicles, trends in the market towards smaller cars with improved features, local special circumstances such as a well-developed public transportation system and high population density in urban areas, and underlying macroeconomic factors including a stable economy and a strong domestic automotive industry.

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).