Small Cars - Brazil

Brazil

In 2024, the projected revenue in the Small Cars market in Brazil is expected to reach €5bn.
Looking ahead, a steady annual growth rate (CAGR 2024-2028) of -0.46% is anticipated, resulting in a projected market volume of €5bn by 2028.
By that year, unit sales in the Small Cars market are expected to reach 341.5k vehicles.
The volume weighted average price of Small Cars market in Brazil in 2024 is projected to be €16k.
When considering the international landscape, it is evident that China will generate the highest revenue in the Small Cars market, with €12,410m in 2024.
The demand for small cars in Brazil has been steadily increasing due to rising fuel prices and congested urban areas.

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

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Analyst Opinion

The Small Cars market in Brazil has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the Small Cars market in Brazil is the changing preferences of customers. Brazilian consumers are increasingly looking for smaller and more fuel-efficient cars that are easier to navigate in the country's congested cities. Small cars offer better maneuverability and are more economical in terms of fuel consumption, making them a popular choice among urban dwellers. Additionally, small cars are often more affordable than larger vehicles, making them an attractive option for price-conscious consumers.

Trends in the market: Another trend in the Small Cars market in Brazil is the increasing demand for electric and hybrid vehicles. As environmental concerns grow and government incentives for eco-friendly vehicles are introduced, more consumers are opting for electric or hybrid small cars. These vehicles offer lower emissions and reduced fuel consumption, aligning with the country's push for sustainable transportation solutions. The availability of charging infrastructure and the development of more affordable electric and hybrid models have also contributed to the growing popularity of these vehicles.

Local special circumstances: Brazil's unique geographical and economic conditions also play a role in the development of the Small Cars market. The country's large population and urbanization rate have led to congested cities and limited parking spaces. Small cars are better suited to navigate these crowded areas and can be easily parked in tight spaces. Additionally, Brazil has a high import tax on larger vehicles, making small cars a more cost-effective option for consumers.

Underlying macroeconomic factors: The growth in the Small Cars market in Brazil can also be attributed to underlying macroeconomic factors. The country has experienced periods of economic instability in recent years, leading to a decline in purchasing power for many consumers. As a result, consumers are looking for more affordable options when it comes to purchasing a vehicle. Small cars, with their lower price tags, fit this requirement and have become a popular choice for budget-conscious buyers. In conclusion, the Small Cars market in Brazil is growing due to changing customer preferences, the increasing demand for electric and hybrid vehicles, local special circumstances such as congested cities and limited parking spaces, and underlying macroeconomic factors such as economic instability and the need for more affordable options.

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).