Passenger Cars - Portugal

Portugal

Revenue in the Passenger Cars market is projected to reach €5.7bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.82%, resulting in a projected market volume of €6.3bn by 2029.
The market's largest segment is SUVs with a projected market volume of €1.6bn in 2024.
Passenger Cars market unit sales are expected to reach 218.70k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to €27.73k in 2024.
With a vehicle unit sales share of 31.1% in 2024, Other is expected to have one of the highest market share in the selected region.
The value market share of the make Other in the selected region is expected to stand at 29.2% 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 Portugal has witnessed significant growth in recent years, driven by changing customer preferences and favorable market conditions. Customer preferences have shifted towards more fuel-efficient and environmentally friendly vehicles, leading to an increased demand for electric and hybrid cars. Additionally, the availability of government incentives and subsidies for electric vehicles has further fueled the growth of this segment.

Customer preferences: In line with global trends, Portuguese customers are increasingly prioritizing fuel efficiency and environmental sustainability when purchasing cars. This has led to a growing demand for electric and hybrid vehicles, which offer lower emissions and reduced fuel consumption compared to traditional gasoline or diesel cars. The government's push towards a greener and more sustainable transportation system has also contributed to the popularity of electric vehicles among customers.

Trends in the market: The Passenger Cars market in Portugal has witnessed a surge in the sales of electric and hybrid vehicles. This can be attributed to several factors, including the expanding charging infrastructure, improved battery technology, and the availability of government incentives. Customers are now more willing to invest in electric vehicles, as they offer long-term cost savings and contribute to a cleaner environment. Moreover, the growing awareness of climate change and the need for sustainable transportation has also influenced customer preferences.

Local special circumstances: Portugal has made significant investments in developing its charging infrastructure, with a focus on increasing the number of public charging stations across the country. This has addressed one of the key concerns of potential electric vehicle buyers – range anxiety. The availability of a robust charging network has instilled confidence in customers, making electric vehicles a viable option for everyday use. Furthermore, the government has implemented tax incentives and subsidies to encourage the adoption of electric vehicles, making them more affordable for the average consumer.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Portugal can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has allowed customers to consider more expensive options, such as electric and hybrid vehicles, which were previously seen as luxury purchases. Additionally, low interest rates and easy access to financing have made it more affordable for customers to purchase new cars, further driving market growth. In conclusion, the Passenger Cars market in Portugal has experienced significant growth due to changing customer preferences, favorable market conditions, and government incentives. The increasing demand for fuel-efficient and environmentally friendly vehicles, coupled with the availability of a robust charging infrastructure and financial incentives, has propelled the growth of electric and hybrid cars in the country. With the government's continued focus on sustainability and the ongoing advancements in battery technology, the market is expected to continue its upward trajectory in the coming years.

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).