New Economic Realities Spur Global Interest in Microcars, According to a New Report Update by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report update on Microcars. Sales of Microcars in North America, Japan and Europe are projected to exceed 1.9 million units by 2020, driven by new economic realities in major cities worldwide, such as, aging societies, congested metros, environmental regulations and the unsustainability of existing fossil energy infrastructure.

Microcars: A Global Market Report

Follow us on LinkedIn – The global automobile industry, over the last couple of decades, has witnessed sea changes in engineering concepts, vehicle design/features and production technologies and costs. Currently underway is an interesting shift in production trends, with Western auto OEMs focusing on “near-shoring”, also known as “reverse globalization” strategies, while Chinese auto majors faced with over-capacity amidst slowing domestic demand are seeking to globalize their production activities. Growing global vehicle fleet, volatile fuel prices, rise in vehicular air pollution, congested cities, creaking transportation infrastructure, and shortage of parking spaces, are compelling governments and auto OEMs to develop automobile solutions to curb the problems. For instance, manufacturers are focusing on engine downsizing/displacement and the development of lightweight, fuel efficient vehicles with low carbon footprint, such as smaller compact cars, electric vehicles, and hybrid vehicles.    

As automotive engineering designs shift towards smaller, more fuel-efficient vehicles, demand for microcars is poised to witness healthy growth. The growth in the market is also fuelled by changing mobility trends in developed cities and government support in the form of tax exemptions and financial assistance. Especially poised to gain are electric mini/micro electric cars, micro green cars, and diesel-fueled microbuses. Key benefits spurring interest in electric microcars include high mileage, easy and faster charging of car batteries, lower maintenance, and zero environmental impact, among others. Microcar sales in the United States are directly proportional to gasoline prices. With declining gas prices, sales of microcars tend to weaken as customers prefer to upgrade to hatchbacks and sedans. In Japan, academic institutions, universities, and local government offices are the main users of micro-compact cars. A key factor impeding adoption among individual consumers is the lack of standards for two-seater mini-sized electric vehicles. Despite the opportunities for growth, the market will face challenges such as, concerns over safety, poor infrastructure for charging electric cars, and lack of power and acceleration capabilities.

Most manufacturers are shifting from fuel-driven to battery-operated cars in conformance with changing environmental regulations and concerns. Increasing concerns over climate change and the pressing need to prepare for fossil fuel independent future have prompted both developed and developing countries to step up research, manufacture, and deployment of energy-efficient transport systems. Electromobility offers a potentially groundbreaking solution to change today's fuel dependent transport system and make a leap towards sustainable mobility.

As stated by the new market research report on Microcars, Japan represents the largest market worldwide. Kei cars which are microcars of Japanese origin are a popular means of short distance commute in Japan. Amidst favorable factors such as ecological concerns, shrinking family size and government initiatives such as tax exemptions, preferential tax policy and infrastructure development schemes, minicars have been recording impressive growth in the country, in recent times. Various leading car manufacturers such as Daihatsu, Mitsubishi and Suzuki are working towards electrification of Kei cars in order to tap into future market opportunities.

Key players covered in the report include Daimler AG, Grecav Auto Srl, Mahindra Reva Electric Vehicles Pvt. Ltd., PSA Peugeot Citroën S.A, Piaggio & C. Spa, Renault S.A., Nissan Motor Co., Ltd., Suzuki Motor Corp., Tata Motors Ltd., Toyota Motor Corporation, and Daihatsu Motor Co., Ltd.

The research report titled “Microcars: A Global Market Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, acquisitions and other strategic industry activities of major companies. The report provides market estimates and projections in Units for North America, Japan and Europe.

For more details about this comprehensive market research report, please click here

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes 1500+ full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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