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Small Cars - India

India

Highlights

Revenue in the Small Cars market is projected to reach US$7bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.13%, resulting in a projected market volume of US$7bn by 2029.
Small Cars market unit sales are expected to reach 1.1m vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to US$7k.
From an international perspective it is shown that the most revenue will be generated China (US$13bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Small Cars market in India has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In India, small cars have always been a popular choice among consumers due to their affordability and fuel efficiency. With the increasing congestion in cities and rising fuel prices, customers are opting for smaller, more compact cars that are easier to maneuver and have lower running costs. Additionally, the growing middle class in India has led to an increase in disposable income, making small cars more accessible to a wider range of consumers.

Trends in the market: One of the key trends in the Small Cars market in India is the shift towards electric vehicles (EVs). As the government aims to reduce carbon emissions and promote sustainable transportation, there has been a growing demand for electric small cars. Manufacturers are responding to this trend by introducing electric models in their small car lineup, offering customers a greener alternative. Additionally, the introduction of government incentives and subsidies for EVs has further boosted their popularity among consumers. Another trend in the market is the increasing focus on safety features. With the rising number of road accidents in India, customers are becoming more conscious about the safety of their vehicles. As a result, manufacturers are incorporating advanced safety features such as airbags, anti-lock braking systems (ABS), and electronic stability control (ESC) in their small car models. This trend is driven by both customer demand and government regulations that require certain safety standards to be met.

Local special circumstances: India has a unique set of circumstances that contribute to the growth of the Small Cars market. The country has a large population, with a significant portion residing in urban areas. This urbanization has led to increased demand for compact cars that can navigate through congested city streets. Additionally, the lack of proper public transportation infrastructure in many parts of the country further drives the need for personal vehicles, particularly small cars.

Underlying macroeconomic factors: India has been experiencing steady economic growth in recent years, with a growing middle class and increasing disposable income. This has led to a higher purchasing power among consumers, making small cars more affordable and accessible. Additionally, favorable government policies and initiatives such as "Make in India" have attracted foreign investments in the automobile sector, leading to the expansion of manufacturing facilities and the introduction of new models in the market. In conclusion, the Small Cars market in India is witnessing growth due to changing customer preferences, including a shift towards electric vehicles and increased focus on safety features. The local special circumstances, such as urbanization and lack of public transportation infrastructure, further drive the demand for small cars. The underlying macroeconomic factors, including economic growth and favorable government policies, also contribute to the development of the market.

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).