SUVs - Latvia

Latvia

Revenue in the SUVs market is projected to reach US$302m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.31%, resulting in a projected market volume of US$306m by 2028.
SUVs market unit sales are expected to reach 8,043.0vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$37k.
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 Latvia has been experiencing significant growth in recent years, driven by changing customer preferences and favorable market conditions.

Customer preferences: Latvian customers have shown a strong preference for SUVs due to their versatility, spaciousness, and perceived safety. SUVs are well-suited for the country's diverse terrain, making them popular among both urban and rural residents. Additionally, SUVs are often seen as a status symbol, appealing to consumers who value style and prestige.

Trends in the market: One of the key trends in the SUVs market in Latvia is the increasing demand for electric and hybrid SUVs. As environmental consciousness grows worldwide, Latvian consumers are also becoming more interested in eco-friendly options. This trend is further supported by government incentives and subsidies for electric and hybrid vehicles, making them more affordable for the average consumer. Another trend in the market is the rise of compact SUVs. These vehicles offer the benefits of an SUV, such as higher ground clearance and increased cargo space, while being more compact and fuel-efficient. Compact SUVs are particularly popular among urban dwellers who value maneuverability and fuel economy.

Local special circumstances: Latvia's relatively small population and limited domestic production of vehicles mean that the SUVs market is heavily reliant on imports. This can result in higher prices compared to other countries with larger automotive industries. However, the availability of a wide range of international brands and models ensures that consumers have plenty of options to choose from.

Underlying macroeconomic factors: The growing SUVs market in Latvia can be attributed to several macroeconomic factors. Firstly, the country's strong economic growth and rising disposable incomes have increased consumer purchasing power, making SUVs more affordable for a larger segment of the population. Additionally, low interest rates and favorable financing options have made it easier for consumers to finance their SUV purchases. Furthermore, Latvia's improving infrastructure, including the expansion of road networks and the development of new residential areas, has made SUVs a practical choice for many Latvian consumers. The ability to navigate both urban and rural areas with ease is a significant advantage of SUV ownership. In conclusion, the SUVs market in Latvia is experiencing growth due to changing customer preferences, including a demand for electric and hybrid SUVs, as well as compact SUVs. The market is also influenced by local special circumstances, such as the reliance on imports and the availability of a wide range of brands. Underlying macroeconomic factors, such as economic growth and improving infrastructure, are also contributing to the market's development.

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).