Small Cars - Turkey

Turkey

Revenue in the Small Cars market is projected to reach US$3bn 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$3bn by 2028.
Small Cars market unit sales are expected to reach 155.0k vehicles in 2028.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$21k.
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 Turkey has been experiencing significant growth in recent years. Customer preferences are shifting towards smaller, more fuel-efficient vehicles due to rising fuel prices and increasing environmental awareness.

Additionally, local special circumstances such as high population density and limited parking spaces in urban areas are driving the demand for compact cars. Customer preferences in the Small Cars market in Turkey are influenced by several factors. Firstly, rising fuel prices have made fuel efficiency a top priority for many consumers.

Small cars are generally more fuel-efficient compared to larger vehicles, making them an attractive option for cost-conscious consumers. Additionally, increasing environmental awareness has led to a growing demand for eco-friendly vehicles. Small cars typically have lower carbon emissions and are seen as a more sustainable choice.

Another factor driving customer preferences in Turkey is the high population density in urban areas. With limited parking spaces and congested roads, smaller cars are easier to maneuver and park in crowded city streets. Compact cars are also more practical for navigating narrow streets and tight parking spaces.

As a result, many urban dwellers prefer small cars for their convenience and ease of use in urban environments. Trends in the Small Cars market in Turkey are also influenced by local special circumstances. Turkey has a young and growing population, with a significant portion of the population entering the workforce and becoming first-time car buyers.

For many young professionals, small cars are a practical and affordable choice. They are often more affordable to purchase, insure, and maintain compared to larger vehicles. Additionally, small cars are often seen as stylish and trendy, appealing to younger consumers.

Furthermore, government policies and incentives have played a role in shaping the Small Cars market in Turkey. The Turkish government has implemented various measures to promote the production and consumption of small cars, including tax breaks and subsidies for eco-friendly vehicles. These policies have encouraged manufacturers to invest in the production of small cars and have made them more affordable for consumers.

Underlying macroeconomic factors also contribute to the growth of the Small Cars market in Turkey. The country's economy has been steadily growing, leading to an increase in disposable income and consumer spending power. As a result, more consumers are able to afford cars, and the demand for small cars has risen accordingly.

Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase small cars. In conclusion, the Small Cars market in Turkey is experiencing growth due to changing customer preferences, local special circumstances, government policies, and underlying macroeconomic factors. Rising fuel prices, increasing environmental awareness, high population density in urban areas, and government incentives have all contributed to the growing demand for small cars in Turkey.

With a young and growing population and a favorable economic environment, the Small Cars market in Turkey is expected to continue its upward trajectory.

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).