The global small cars market size is expected to reach USD 193.19 billion by 2028, registering a CAGR of 7.9% over the forecast period, according to a new report by Million Insights. Increase in disposable income and growing spending on vehicles will propel the growth of the market. Furthermore, the expanding middle-class population and their inclination toward buying affordable cars will accelerate the growth of the market. New product developments and technological advancements in different fuel categories will open up new opportunities for makers and buying options for customers in near future.
The increased inclination of automakers toward producing fuel-efficient cars by reducing weight and size and the stringent laws regarding minimizing the carbon emission of vehicles are the factors expected to create the demand for small cars globally. Furthermore, increased steel prices and plastic prices forced the automakers to shift their focus toward the market for small cars, which is expected to propel the growth of the market in the forthcoming years.
The growing number of entry-level buyers and affordable pricing of small cars are primarily driving the growth of the market. Skyrocketing fuel prices and growing environmental concerns further boost the demand for fuel-efficient small cars in the global passenger cars market. Higher prices of electric-based models, stricter CO2 emission norms, and the growing popularity of SUVs are the factors anticipated to hamper the growth of the market.
The COVID-19 pandemic has adversely affected global sales of small cars. To control the spread of the coronavirus, many countries imposed country-wise strict lockdown as well as stopped international trading. This resulted in restrictions on stepping outside of the house, lowering the demand for small cars. However, as things get back to normal, it is expected that small cars will witness a significant rise in demand in near future.
The report “Small Cars Market Size, Share & Trends Analysis Report By Fuel Type (Petrol, Diesel, Electric), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
For this study, Million Insights has segmented the global small cars market based on fuel type and region:
Small Cars Fuel Type Outlook (Revenue, USD Million, 2017 - 2028)
Small Cars Regional Outlook (Revenue, USD Million, 2017 - 2028)