SUVs - Hong Kong

Hong Kong

Revenue in the SUVs market is projected to reach US$543m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.07%, resulting in a projected market volume of US$827m by 2028.
SUVs market unit sales are expected to reach 15.3k vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$54k.
From an international perspective it is shown that the most revenue will be generated in the United States (US$275bn in 2024).

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

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Analyst Opinion

The SUVs market in Hong Kong has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the SUVs market in Hong Kong is the changing preferences of customers. SUVs are known for their versatility, spaciousness, and off-road capabilities, which make them suitable for various purposes. Customers in Hong Kong are increasingly looking for vehicles that can accommodate their active lifestyles and provide a comfortable driving experience. The popularity of SUVs is also driven by the perception of safety and prestige associated with these vehicles.

Trends in the market: In recent years, there has been a noticeable shift in the market towards smaller and more fuel-efficient SUVs. This trend can be attributed to the rising concerns about environmental sustainability and the increasing fuel prices in Hong Kong. Customers are now looking for SUVs that offer better fuel efficiency without compromising on performance or comfort. Manufacturers have responded to this trend by introducing hybrid and electric SUV models, which have gained popularity among environmentally conscious customers.

Local special circumstances: Hong Kong's unique geographical and urban landscape also contributes to the growth of the SUVs market. The city is known for its hilly terrain and narrow streets, which can make driving smaller cars challenging. SUVs, with their higher ground clearance and larger size, provide better visibility and maneuverability in these conditions. Additionally, the spaciousness of SUVs makes them ideal for families and individuals who require ample cargo space for their daily activities.

Underlying macroeconomic factors: The strong economic growth in Hong Kong has also played a role in the growth of the SUVs market. As the disposable income of individuals and households increases, more people are able to afford SUVs and are willing to invest in these vehicles. Moreover, the low interest rates and favorable financing options offered by banks and financial institutions make it easier for customers to purchase SUVs. In conclusion, the growth of the SUVs market in Hong Kong can be attributed to changing customer preferences, the trend towards smaller and more fuel-efficient models, the unique local circumstances, and the underlying macroeconomic factors. As these factors continue to shape the market, it is expected that the SUVs market in Hong Kong will continue to grow in the coming years.

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).