Global Microcars Market 2017-2021

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