Passenger Cars - Brazil

Brazil

Revenue in the Passenger Cars market is projected to reach €50.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.31%, resulting in a projected market volume of €49.5bn by 2029.
The market's largest segment is SUVs with a projected market volume of €16.2bn in 2024.
Passenger Cars market unit sales are expected to reach 1,964.00k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to €25.02k in 2024.
With a vehicle unit sales share of 20.4% in 2024, Chevrolet is expected to have one of the highest market share in the selected region.
The value market share of the make Volkswagen in the selected region is expected to stand at 17.9% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (€561bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Brazil has been experiencing significant growth in recent years, driven by changing customer preferences and favorable macroeconomic factors.

Customer preferences: Customers in Brazil are increasingly looking for fuel-efficient and environmentally friendly vehicles. This trend is driven by rising fuel prices and growing awareness of the impact of carbon emissions on the environment. As a result, there has been a shift towards smaller and more fuel-efficient cars, as well as an increased demand for hybrid and electric vehicles.

Trends in the market: One of the key trends in the Brazilian Passenger Cars market is the growing popularity of SUVs. SUVs offer a combination of space, comfort, and versatility, making them attractive to a wide range of customers. This trend is driven by changing lifestyles and the desire for a vehicle that can accommodate both city driving and off-road adventures. Another trend in the market is the increasing adoption of advanced safety features. Brazilian customers are becoming more conscious of safety and are willing to pay a premium for vehicles that offer advanced safety technologies such as lane departure warning, adaptive cruise control, and automatic emergency braking. This trend is driven by a desire to protect themselves and their families on the road.

Local special circumstances: Brazil has a unique set of circumstances that influence the Passenger Cars market. One of the key factors is the high import taxes on foreign vehicles, which make them significantly more expensive compared to locally manufactured cars. This has led to a strong preference for domestic brands, such as Fiat, Volkswagen, and Chevrolet. Another special circumstance is the availability of flex-fuel vehicles in Brazil. Flex-fuel vehicles are capable of running on both gasoline and ethanol, which is a locally produced biofuel. This has made ethanol a popular and cost-effective fuel option for Brazilian customers, leading to a higher demand for flex-fuel vehicles.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Brazil is also influenced by underlying macroeconomic factors. Brazil has experienced a period of economic stability and rising incomes in recent years, which has increased the purchasing power of consumers. This has led to a higher demand for cars, as more people are able to afford them. Additionally, the government has implemented a number of incentives to stimulate the automotive industry, such as tax breaks and low-interest financing options. These measures have made it easier for consumers to purchase cars and have contributed to the growth of the Passenger Cars market. In conclusion, the Passenger Cars market in Brazil is experiencing growth due to changing customer preferences, such as the demand for fuel-efficient and safe vehicles, as well as favorable macroeconomic factors, including rising incomes and government incentives. The market is also influenced by local special circumstances, such as high import taxes and the availability of flex-fuel vehicles. Overall, these factors are driving the development of the Passenger Cars market in Brazil.

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).