Press Release Description

Affordable Small Cars Drive Rapid Expansion of Microcar Market Globally

The Global Microcar market is projected to grow at a CAGR of around 9.24% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growing consumer inclination towards small compact-sized cars, attractive pricing of microcars, low operational cost due to the introduction of the electric powertrain, etc., are several factors attributing to the market growth.

Microcars are of smaller size with less than 3 meters in length & lesser power than 700cc, making them lightweight & highly fuel-efficient by lowering the overall operational cost. These cars are also better suited for urban spaces with tightly-packed roads as well as traffic congestion making urban mobility slower. One of the key factors for the higher adoption of microcars is the upfront or ownership cost being on the lower side. When analogized with other conventional engines or electric-powered vehicles of regular size, different models of microcars start from a lower cost, keeping the fixed cost on the affordable side.

Some existing microcars falling under the category are Sprout, Sprout Solar, Mark 1, and Mark 2 Solar models offered by Wink Motors, and Eli Zero model by Eli Electric Vehicles, starting from the price range of USD12,000 and USD11,000, respectively. This is significantly lower compared to the prices of other conventional engine hatchbacks, subsequently promoting their adoption among customers. With the affordability factor for the customers due to lower fixed & operational costs of microcars compared to other car categories, the market is expected to exhibit considerable growth, further states the research report, “Global Microcar Market Analysis, 2023.”

Electric Engine to Hold a Notable Share in the Microcar Market

Based on the propulsion, the market is further bifurcated into, Internal Combustion Engines & Electric. Of all, Electric Microcars have held a significant market share due to the increasing focus of automotive manufacturers towards environment-friendly solutions as well as reducing carbon emission through mobility solutions has led to a remarkable expansion in the electric powertrain-based microcar category.

Many automobile manufacturers have embarked on the global mobility market with their electric microcar models, subsequently enhancing the available option for customers. For instance, in 2023, PMV Electric, an India-based electric Microcar manufacturer, announced the launch of its Eas-E vehicle model. The microcar is priced at USD6,000 & the deliveries would commence in mid-2023.  With the rising launches of new electric models of microcars, it is expected that the demand would steer rapidly toward electric powertrain systems & which would promote market growth during 2023-2028.

Asia-Pacific to Hold Significant Market Share with Higher Inclination Towards Small & Less Expensive Cars

Geographically, Asia-Pacific is predicted to grab a significant share in the forthcoming years due to the presence of mass numbers of the middle-class & lower-middle-class populations. Microcars are available in the market at lower prices compared to passenger vehicles, which provides an immense occasion for price-sensitive customers. Countries such as India, China, and Indonesia, conforming to a huge middle-class population, would act as major attractive markets for microcars in the coming times.

Additionally, the Asia-Pacific countries witness a major problem of traffic congestion on a daily basis, due to the presence of a high population which restricts individuals from reaching their destinations on time. Thus, the individuals of these regional countries have been switching over to microcars to avoid traffic congestion & late arrival to their destinations, therefore upscaling the need for these cars in the market during the following period.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Daimler AG, Group PSA, Smart (Mercedes Benz), Nissan Motor Co. Ltd, Toyota Motor Company, Groupe Renault S.A., Honda Motor Company, General Motors, LIGER Group, Geely, Microlino, PMV Electric, etc., are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

  1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
  2. What are the trends that have shaped the industry to its current form?
  3. What key factors would propel and impede the industry across the region?
  4. How has the industry been evolving in terms of geography & product adoption?
  5. How has the competition shaped across various regions, followed by their comparative factorial indexing?
  6. How have buying behavior, customer inclination, and expectations from product manufacturers evolved during 2018-28?
  7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?