Passenger Cars - South America

South America

Revenue in the Passenger Cars market is projected to reach €158.1bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 42.37%, resulting in a projected market volume of €924.8bn by 2029.
The market's largest segment is SUVs with a projected market volume of €45.0bn in 2024.
Passenger Cars market unit sales are expected to reach 6,144.00k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to €41.18k in 2024.
With a vehicle unit sales share of 19.0% 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 17.6% 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 South America has been experiencing significant growth in recent years. Customer preferences have shifted towards smaller and more fuel-efficient vehicles, as well as towards SUVs and crossovers.

Additionally, there are several trends in the market that are contributing to its development. Customer preferences in the South American Passenger Cars market have been influenced by a variety of factors. One key factor is the increasing concern for the environment and the desire for more fuel-efficient vehicles.

As a result, customers are opting for smaller cars that offer better fuel economy. Additionally, SUVs and crossovers have become increasingly popular, as they offer a combination of space, comfort, and versatility. These vehicles are particularly appealing to families and individuals who enjoy outdoor activities.

Several trends in the market are driving the growth of the Passenger Cars market in South America. One trend is the increasing urbanization in the region. As more people move to cities, the demand for personal transportation has increased.

Additionally, the improving infrastructure in South America has made car ownership more feasible for a larger portion of the population. This has led to an increase in the number of first-time car buyers. Another trend in the market is the growing middle class in South America.

As incomes rise, more people are able to afford cars. This has led to an increase in car ownership and a higher demand for Passenger Cars. Additionally, the availability of financing options has made it easier for individuals to purchase cars, further driving the growth of the market.

Local special circumstances in South America also play a role in the development of the Passenger Cars market. One such circumstance is the high import taxes and tariffs imposed by many countries in the region. These taxes make it more expensive for foreign car manufacturers to sell their vehicles in South America, creating opportunities for local manufacturers to thrive.

This has led to the emergence of several successful domestic car brands in the region. Underlying macroeconomic factors also contribute to the growth of the Passenger Cars market in South America. Economic stability and growth in the region have increased consumer confidence and purchasing power.

Additionally, low interest rates and favorable financing options have made car ownership more accessible to a larger portion of the population. In conclusion, the Passenger Cars market in South America is developing due to changing customer preferences, various market trends, local special circumstances, and underlying macroeconomic factors. As more people in the region seek fuel-efficient vehicles and SUVs, the market continues to grow.

The increasing urbanization and rising incomes in South America, along with favorable financing options, have also contributed to the growth of the 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).