Small Cars - South America

South America

Revenue in the Small Cars market is projected to reach US$10,900m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.39%, resulting in a projected market volume of US$11,070m by 2028.
Small Cars market unit sales are expected to reach 615.1k 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 South America is experiencing significant growth and development.

Customer preferences: Customers in South America are increasingly preferring small cars due to their compact size, fuel efficiency, and affordability. These cars are well-suited for navigating the region's congested urban areas and narrow streets. Additionally, the rising awareness of environmental concerns and the need for sustainable transportation options have also contributed to the growing demand for small cars.

Trends in the market: One of the key trends in the South American Small Cars market is the increasing popularity of electric and hybrid small cars. As the region strives to reduce its carbon footprint and promote sustainable transportation, more customers are opting for electric or hybrid vehicles. This trend is further supported by the government's initiatives and incentives to promote the adoption of electric vehicles. Another trend in the market is the integration of advanced technology and features in small cars. South American customers are increasingly looking for small cars that offer the same level of comfort, convenience, and safety features as larger vehicles. As a result, automakers are incorporating advanced infotainment systems, driver-assistance technologies, and enhanced safety features in their small car models to cater to these customer preferences.

Local special circumstances: One of the unique circumstances in the South American Small Cars market is the presence of a large used car market. Many customers in the region prefer purchasing used cars due to their lower cost. This preference for used cars poses a challenge for automakers in promoting the sales of new small cars. To overcome this challenge, automakers are focusing on offering competitive pricing, attractive financing options, and warranty programs to incentivize customers to choose new small cars over used ones.

Underlying macroeconomic factors: The growth of the Small Cars market in South America is also influenced by underlying macroeconomic factors. Economic stability and improvement in the purchasing power of consumers have played a significant role in driving the demand for small cars. As the economy continues to grow, more individuals and families are able to afford personal vehicles, and small cars are often the preferred choice due to their affordability and lower maintenance costs. In conclusion, the Small Cars market in South America is experiencing growth and development due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing popularity of electric and hybrid small cars, the integration of advanced technology and features, the presence of a large used car market, and underlying macroeconomic factors are all contributing to the growth of this market.

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).