Overview of the global microcars market

Technavio’s market research report predicts that the global microcars market will grow steadily and in terms of units, will post a CAGR of nearly 3% during the forecast period. The increased preference for affordable economic cars in APAC is one of the primary drivers for market growth. Automotive markets in APAC are cost-sensitive because of controlled spending habits, the lack of awareness about financial methods, and economic backwardness. Customers in APAC choose to buy small cars due to affordability and economical to maintain. Moreover, the perception of achieving high social acceptance by owning a car in China and India is projected to propel the sales of small cars. Furthermore, the availability of car finance at competitive rates and the rise in the disposable income are the chief reasons for growth in the penetration of cars in developing countries such as India. The increasing sales of passenger cars are projected to raise the demand for microcars in the developing countries since they are more affordable than the other cars.

One of the latest trends that will gain traction in the global microcars market is the decreasing prices of the batteries used in the electric microcars. Improvements in the battery manufacturing industry and the increasing sales of electric cars have led to the drop in the prices of electric car batteries, which in turn, has enabled the electric microcar manufacturers match the prices of gasoline microcar OEMs. The developments in the battery manufacturing and battery chemistry along with the increasing sales of electric cars have resulted in battery manufacturers pricing their products competitively to achieve maximum sales. Since the batteries are one of the major parts of electric cars the reduction in their prices reduces the overall cost of the vehicle, in turn fueling sales.

Competitive analysis and key vendors

The global microcar market is extremely-competitive and is characterized by the presence of a large number of strong players. Changing customer preferences, particularly in India is driving the manufacturers to raise their investments in R&D activities. India and Europe are the key markets for microcars. Moreover, with the advancements in the technology and increasing government regulations, the competitive environment in the market is likely intensify during the forecast period.

Key vendors in the market are:

• Daimler
• Toyota
• General Motors
• Honda

Other prominent vendors include Renault, Mitsubishi Motors, and Fiat Automobiles.

Segmentation by engine-type and analysis of the microcars market

• ICE
• Hybrid/electric

During 2016, the ICE engine-type segment dominated the global microcars market and is expected to continue its dominance over the next four years. Factors such as the rising demand for cheap and affordable cars, the increasing disposable income of the middle-class population, and the growing number of two-wheeler accidents in developing countries due to the dearth of safety measures and poor road conditions, will drive the segment’s growth in this global market.

Geographical segmentation and analysis of the microcars market

• Americas
• APAC
• Europe

In terms of geography, APAC dominated the microcars market during 2016 and is expected to continue its dominance during the forecast period as well. The increased preference for cheap and fuel-efficient cars will be the major factor driving the growth of the microcars market in APAC, where countries such as Japan, India and South Korea will be the key markets.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global microcars market?
• What are the key market trends impacting the growth of the global microcars market?
• What are the challenges to market growth?
• Who are the key vendors in the global microcars market?
• What are the market opportunities and threats faced by the vendors in the global microcars market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA .
• What are the key outcomes of the five forces analysis of the global microcars market?

Technavio also offers customization on reports based on specific client requirement.

Technavio’s reports for the automotive industry covers a wide range of product markets including automotive manufacturing, automotive components, and automotive electronics. In addition to furnishing information on multiple parameters including the evolution of customer preferences and the factors, which will make an impact on the growth of the vendors in the automotive industry’s marketspace, Technavio’s reports also include a competitive analysis of the prominent vendors, their products and services, and the market landscape.

To precisely forecast the industry’s growth prospects, our market research experts follow a triangulated method of primary and secondary research and make an extensive analysis of the demand-supply shifts for different products and services across various geographical regions. With an aim to assist businesses to devise new growth strategies, our upcoming industry research report on microcars market for the period of 2017 to 2021 reveals exclusive insights conceived from the data collected from reliable market informants such as manufacturers, channel partners, regulatory bodies, and decision makers.

This upcoming report on global microcars market also takes into account the development of similar markets such as hydrogen fuel cell vehicle and high-performance electric vehicle, which are expected to grow at a CAGR of almost 82% and about 38%, respectively by 2021. According to our market research experts, stronger automotive exports due to widespread globalization, coupled with increased automation of automobile manufacturers’ production are the significant factors driving the automotive manufacturing industry’s growth in the next few years. Technavio also provides reports that cater to a variety of clients, which will boost the presence of local vendors and players targeting niche customer segments in the automotive market.

The upcoming industry research report for global microcars market also showcases the vital market drivers, inherent market trends, and the challenges currently faced by the automotive industry and also presents insights into growing sectors like auto accessories, automotive services, and wheels and tires.