SUVs - Peru

Peru

Revenue in the SUVs market is projected to reach US$960m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.01%, resulting in a projected market volume of US$1,000m by 2028.
SUVs market unit sales are expected to reach 32.7k vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$30k.
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 Peru has been experiencing significant growth in recent years.

Customer preferences: Peruvian customers have shown a strong preference for SUVs due to their versatility and ruggedness. SUVs are well-suited for Peru's diverse terrain, which includes mountainous regions, deserts, and rainforests. The spacious interiors and high ground clearance of SUVs make them ideal for navigating these challenging landscapes. Additionally, SUVs provide a sense of safety and security to customers, which is particularly important in a country with varying road conditions and safety concerns.

Trends in the market: One of the key trends in the SUVs market in Peru is the increasing demand for compact SUVs. These smaller-sized SUVs offer the benefits of a traditional SUV, such as higher seating position and increased cargo space, but with a more affordable price tag and better fuel efficiency. This trend can be attributed to the rising urbanization in Peru, as compact SUVs are easier to maneuver in congested city streets and parking spaces. Another trend in the market is the growing popularity of electric and hybrid SUVs. As environmental consciousness increases globally, Peruvian customers are also seeking greener alternatives for their transportation needs. Electric and hybrid SUVs offer lower emissions and reduced fuel consumption, making them attractive options for environmentally-conscious consumers. The government of Peru has also introduced incentives and tax breaks to encourage the adoption of electric vehicles, further driving the demand for electric and hybrid SUVs.

Local special circumstances: Peru's geography and climate present unique challenges for automobile manufacturers and customers. The rugged terrain and extreme weather conditions require SUVs to be durable and reliable. Additionally, the high altitude in certain regions of Peru can affect the performance of vehicles, making it important for SUVs to have powerful engines and advanced technology to adapt to these conditions.

Underlying macroeconomic factors: Peru has experienced steady economic growth in recent years, which has contributed to the increasing purchasing power of consumers. As incomes rise, more Peruvians are able to afford SUVs, which were previously considered luxury vehicles. Additionally, the availability of financing options and attractive loan rates have made it easier for consumers to purchase SUVs. In conclusion, the SUVs market in Peru is growing due to customer preferences for versatile and rugged vehicles, the increasing demand for compact and electric/hybrid SUVs, the unique challenges presented by Peru's geography and climate, and the underlying macroeconomic factors such as economic growth and improved affordability.

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).