Small Cars - Singapore

Singapore

Revenue in the Small Cars market is projected to reach US$95m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 10.03%, resulting in a projected market volume of US$138m by 2028.
Small Cars market unit sales are expected to reach 7.6k vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$18k.
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 Singapore has been witnessing significant growth in recent years.

Customer preferences: Singaporean customers have shown a growing preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are well-suited for Singapore's urban environment, where parking spaces are limited and traffic congestion is common. Additionally, the rising awareness of environmental concerns has led to an increased demand for eco-friendly vehicles, and small cars are often seen as a greener alternative to larger vehicles.

Trends in the market: One of the key trends in the Small Cars market in Singapore is the increasing popularity of electric and hybrid small cars. As the government promotes sustainable transportation and offers incentives for electric vehicles, more Singaporeans are opting for electric or hybrid small cars to reduce their carbon footprint. This trend is expected to continue as the government continues to invest in charging infrastructure and provides subsidies for electric vehicle purchases. Another trend in the market is the growing demand for small cars with advanced safety features. Singaporeans are becoming more conscious of safety on the roads, and small cars that offer features such as lane departure warning, automatic emergency braking, and blind-spot detection are in high demand. Automakers are responding to this trend by incorporating these safety features into their small car models.

Local special circumstances: Singapore's strict vehicle quota system, known as the Certificate of Entitlement (COE), has a significant impact on the Small Cars market. The COE system limits the number of vehicles on the road by auctioning off a limited number of COEs each month. This has resulted in high prices for COEs, making car ownership expensive in Singapore. As a result, many Singaporeans prefer smaller and more affordable cars, which are subject to lower COE prices.

Underlying macroeconomic factors: The Small Cars market in Singapore is influenced by various macroeconomic factors. Singapore's strong economy and high per capita income levels have contributed to the growth of the small car segment. With a stable economy and favorable employment prospects, more Singaporeans are able to afford car ownership, albeit in the form of smaller and more affordable models. In conclusion, the Small Cars market in Singapore is growing due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing popularity of electric and hybrid small cars, as well as the demand for advanced safety features, are key trends in the market. The local special circumstance of the COE system, along with Singapore's strong economy and high income levels, are underlying macroeconomic factors that contribute to the growth of the Small Cars market in Singapore.

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).