SUVs - Nepal

Nepal

Revenue in the SUVs market is projected to reach US$63m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.16%, resulting in a projected market volume of US$97m by 2028.
SUVs market unit sales are expected to reach 2.7k vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$35k.
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 Nepal has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Nepal has traditionally been a market dominated by small cars and motorcycles due to the challenging terrain and limited road infrastructure. However, there has been a shift in customer preferences towards SUVs in recent years. This can be attributed to several factors. Firstly, SUVs offer better ground clearance and off-road capabilities, making them well-suited for Nepal's rugged terrain. Secondly, SUVs provide a sense of safety and security, which is important considering the challenging road conditions in the country. Lastly, SUVs are seen as a status symbol, with consumers increasingly associating them with luxury and prestige.

Trends in the market: The SUVs market in Nepal has witnessed a steady increase in demand, with a growing number of international automakers entering the market. This has led to a wider range of SUV models being available to Nepalese consumers. Additionally, there has been a rise in the popularity of compact SUVs, which offer a balance between size and affordability. These smaller SUVs are particularly appealing to urban consumers who value maneuverability and fuel efficiency.

Local special circumstances: Nepal's unique geography and infrastructure pose specific challenges for the automotive market. The country has a mountainous terrain with narrow and winding roads, which can make driving difficult. SUVs are better equipped to handle these conditions, with their higher ground clearance and advanced suspension systems. Furthermore, Nepal experiences harsh weather conditions, including heavy rainfall and snowfall, which can make roads slippery and treacherous. SUVs with all-wheel drive systems provide better traction and stability, making them a preferred choice for many Nepalese consumers.

Underlying macroeconomic factors: The growth of the SUVs market in Nepal can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has allowed more people to afford SUVs, which are generally priced higher than smaller cars. Additionally, the government has implemented policies to promote the automotive industry, including the reduction of import duties on vehicles. This has made SUVs more affordable and accessible to a wider range of consumers. In conclusion, the SUVs market in Nepal is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As consumers increasingly prioritize safety, off-road capabilities, and status, the demand for SUVs is expected to continue rising 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).