Small Cars - Mexico

  • Mexico
  • Revenue in the Small Cars market is projected to reach US$6,299m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -4.76%, resulting in a projected market volume of US$4,937m by 2029.
  • Small Cars market unit sales are expected to reach 296.9k vehicles in 2029.
  • The volume weighted average price of Small Cars market in 2024 is expected to amount to US$17k.
  • From an international perspective it is shown that the most revenue will be generated in China (US$13,290m in 2024).

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

 
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Analyst Opinion

The Small Cars market in Mexico has seen significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences:
Mexican consumers have shown a growing preference for small cars due to their affordability, fuel efficiency, and compact size. Small cars are particularly popular among urban dwellers who value easy maneuverability and lower maintenance costs. Additionally, with increasing concerns about environmental sustainability, many consumers are opting for small cars that have lower carbon emissions compared to larger vehicles.

Trends in the market:
One of the key trends in the Small Cars market in Mexico is the increasing popularity of electric and hybrid small cars. As the government and environmental organizations promote sustainable transportation, more automakers are introducing electric and hybrid models to cater to this demand. These vehicles offer lower operating costs and reduced environmental impact, making them attractive to environmentally conscious consumers. Another trend in the market is the integration of advanced technology features in small cars. Mexican consumers are increasingly looking for small cars that offer connectivity options, advanced safety features, and infotainment systems. Automakers are responding to this trend by equipping their small car models with these features, enhancing the overall driving experience for consumers.

Local special circumstances:
Mexico's urban areas are characterized by heavy traffic congestion and limited parking spaces. This has led to a growing demand for small cars that are easier to maneuver in crowded streets and can fit into tight parking spots. Additionally, small cars are often more affordable than larger vehicles, making them an attractive option for cost-conscious consumers in Mexico.

Underlying macroeconomic factors:
Mexico's growing middle class and improving economy have contributed to the expansion of the Small Cars market. As more people enter the middle class, they have greater purchasing power and are able to afford cars. The availability of financing options and favorable interest rates have also made it easier for consumers to purchase small cars. Furthermore, government policies and incentives have played a role in the growth of the Small Cars market in Mexico. The government has implemented measures to promote the production and use of small cars, such as tax breaks and subsidies for electric and hybrid vehicles. These policies have encouraged automakers to invest in the production of small cars and have made them more affordable for consumers. In conclusion, the Small Cars market in Mexico is developing due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for small cars, particularly electric and hybrid models, reflects a shift towards more sustainable transportation options. The integration of advanced technology features in small cars caters to the evolving needs and preferences of Mexican consumers. The local special circumstances, such as heavy traffic congestion and limited parking spaces, have further fueled the demand for small cars. Finally, Mexico's growing middle class and supportive government policies have contributed to the expansion 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).

Overview

  • Unit Sales
  • Analyst Opinion
  • Technical Specifications
  • Revenue
  • Price
  • Global Comparison
  • Methodology
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