The global microcars market is expected to grow at a CAGR of close to 3% during the forecast period, 2017-2021.
Technavio has announced its latest market research report on the global microcars market, under its automotive manufacturing portfolio. This market analysis discusses the major drivers and key emerging trends and offers an analysis of key vendors like Daimler, Toyota, General Motors, and Honda.
According to Siddharth Jaiswal, a lead analyst for automotive manufacturing research at Technavio, “Customers in APAC prefer to buy small cars as they are affordable and economical to maintain. Moreover, the perception of achieving higher social acceptance by owning a car in China and India is expected to drive the sales of small cars that fit within the constrained budgets of the customers.”
Automotive markets in APAC are cost sensitive due to constrained spending habits, the lack of awareness regarding financial methods, and economic backwardness. The decreased penetration of cars in emerging countries presents a great opportunity for car OEMs to start their business in APAC. The automotive industry is likely to grow in emerging countries like China, India, Brazil, South Korea, Indonesia, and parts of Eastern Europe.
OEMs launching microcars with inflated engine capacity and features
OEMs are increasingly adding advanced features to microcars to negate the perception of microcars being labelled as “cheap cars” in an attempt to increase their sales in markets of emerging countries. Furthermore, OEMs are moving their focus from markets like China and India to countries like Thailand, Russia, Europe, and Brazil to increase their global market presence. For instance, General Motors postponed the launch of its compact vehicles that targeted the Indian and Chinese markets due to the underperformance of their compact car segments in these markets.
Decreasing prices of batteries used in electric microcars
Developments in the battery manufacturing industry and the rising sales of electric cars have resulted in the reduction of the prices of electric car batteries. As a result, electric microcar OEMs are ready to match the prices of gasoline microcar OEMs. The decline in prices of batteries of electric microcars is projected to facilitate market growth in the coming years.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. An analysis of the key companies, including their market shares, business overview, key financials, etc. is provided in this study. This market study also provides a detailed analysis of key drivers, challenges, and opportunities influencing this market.
Other related reports:
- Global Super-Sport Motorcycle Market 2017-2021
- Global Articulated Bus Market 2017-2021
- Global Three-Wheeler (3W) Goods Carrier Market 2017-2021
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