Small Cars - Norway

Norway

Revenue in the Small Cars market is projected to reach €428m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.46%, resulting in a projected market volume of €438m by 2029.
Small Cars market unit sales are expected to reach 24,630.0vehicles in 2029.
The volume weighted average price of Small Cars market in 2024 is expected to amount to €19k.
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 Norway has seen significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Norwegian customers have shown a strong preference for small cars due to their fuel efficiency and compact size. With the increasing concern for the environment and rising fuel prices, small cars have become a popular choice among consumers in Norway. Additionally, the compact size of these vehicles makes them well-suited for navigating the narrow streets and parking spaces in urban areas.

Trends in the market: One of the key trends in the Small Cars market in Norway is the growing demand for electric and hybrid vehicles. Norway has been at the forefront of the global shift towards electric mobility, with a strong focus on reducing carbon emissions. The government has implemented various incentives and subsidies to promote the adoption of electric vehicles, including tax exemptions, toll discounts, and free parking. As a result, electric and hybrid small cars have gained popularity among Norwegian consumers. Another trend in the market is the increasing availability of advanced technology and features in small cars. Automakers are incorporating innovative features such as advanced safety systems, connectivity options, and infotainment systems in their small car models. This has attracted consumers who are looking for a compact and affordable vehicle without compromising on technology and convenience.

Local special circumstances: Norway's unique geography and climate contribute to the demand for small cars. The country has a large number of fjords, mountains, and narrow roads, which can be challenging to navigate with larger vehicles. Small cars offer better maneuverability and are more suitable for driving in these conditions. Additionally, the cold climate in Norway makes fuel efficiency a crucial factor for consumers, as smaller vehicles tend to have better fuel economy.

Underlying macroeconomic factors: Norway's strong economy and high disposable income levels have also contributed to the growth of the Small Cars market. The country has a high GDP per capita and a relatively low unemployment rate, which has increased the purchasing power of consumers. As a result, more people are able to afford small cars and are willing to invest in vehicles that align with their environmental values. In conclusion, the Small Cars market in Norway is experiencing growth due to customer preferences for fuel-efficient and compact vehicles, the increasing demand for electric and hybrid cars, the availability of advanced technology in small cars, as well as the local special circumstances of Norway's geography and climate. The country's strong economy and high disposable income levels further support 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).