Small Cars - Spain

Spain

Revenue in the Small Cars market is projected to reach €2,575m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.60%, resulting in a projected market volume of €2,653m by 2029.
Small Cars market unit sales are expected to reach 180.7k vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to €14k.
From an international perspective it is shown that the most revenue will be generated in China (€12,320m in 2024).

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

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Analyst Opinion

The Small Cars market in Spain has been experiencing steady growth in recent years.

Customer preferences: Spanish consumers have shown a strong preference for small cars due to their compact size, fuel efficiency, and affordability. Small cars are particularly popular among urban dwellers who value their maneuverability in crowded city streets and their ease of parking. Additionally, the rising cost of living has led many consumers to prioritize cost-effective transportation options, making small cars an attractive choice.

Trends in the market: One notable trend in the Small Cars market in Spain is the increasing demand for electric and hybrid vehicles. As environmental concerns grow and government regulations incentivize the adoption of greener technologies, Spanish consumers are becoming more interested in electric and hybrid small cars. This trend aligns with the global shift towards sustainable transportation solutions and reflects a growing awareness of the need to reduce carbon emissions. Another trend in the market is the integration of advanced technology features in small cars. Spanish consumers are increasingly seeking vehicles that offer connectivity, safety features, and infotainment systems. Automakers are responding to this demand by incorporating these features into their small car models, enhancing the overall driving experience and attracting tech-savvy consumers.

Local special circumstances: Spain's urban landscape, with its narrow streets and limited parking spaces, has played a significant role in shaping the Small Cars market. The compact size of small cars makes them well-suited for navigating the country's tight city streets and finding parking in crowded areas. This unique local circumstance has contributed to the popularity of small cars in Spain, making them a practical choice for many urban residents.

Underlying macroeconomic factors: Spain's recovering economy has had a positive impact on the Small Cars market. As the country emerges from the economic downturn of the past decade, consumer confidence has increased, leading to higher purchasing power. This has allowed more consumers to consider buying a car, with small cars being an attractive option due to their affordability. Additionally, government incentives and subsidies for electric and hybrid vehicles have further stimulated the Small Cars market in Spain. These incentives, such as tax breaks and grants, have made electric and hybrid small cars more accessible and affordable for consumers. The government's commitment to promoting sustainable transportation has created a favorable environment for the growth of this segment in the market. In conclusion, the Small Cars market in Spain is thriving due to customer preferences for compact, fuel-efficient, and affordable vehicles. The increasing demand for electric and hybrid small cars, the integration of advanced technology features, Spain's unique urban landscape, and the country's recovering economy, along with government incentives, are all contributing factors to the growth of this market.

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).