Microcars: A Global Market Report
San Jose, CA (PRWEB) May 28, 2013
Follow us on LinkedIn - Global vehicle industry has undergone significant transformation in the past few decades in terms of vehicle design, features, production costs and affordability. The resultant upsurge in vehicle population and the rise in fuel prices have compelled governments and manufacturers to seek alternative options for achieving higher fuel economy and low carbon footprint. As the financial crisis continues to weaken consumer confidence and vehicular traffic becomes more congested, automotive manufacturers are coming out with smaller and efficient vehicles to meet these problems. Amidst this scenario, microcars are witnessing healthy growth over the past few years with several automakers entering the space to address the increasing demand. The segment also draws traction from government initiatives such as tax exemption and no license required policy and changing mobility trends in developed cities. Also, manufacturers are adopting huge online and viral marketing strategies and car sharing and self- service rental plans to gear up sales.
While new features have been able to revive the interest in microcars, style and new designs have added to its appeal. The market is expected to witness the introduction of large number of microcar variants models in the near term incorporating ergonomics and fittings designed for maximum comfort. With growing interest among urban population for high fuel economy and low carbon emission vehicles, OEMs are focusing on integration of advanced technologies to develop light weight and yet strong design that offers several benefits for use in metro cities such as low CO2 emission, start-stop system for frequent halts in traffic, automatic parking assist, low turning radius for driving in congested places, and ergonomic design for comfortable longer hours seating. The segment is also gaining popularity amongst the Gen-Y consumers, who prefer to commute on a sharing basis, as well as among rental car operators across the world.
Most microcar manufacturers are shifting from fuel-driven cars to battery-operated cars in line with the changing environmental regulations and concerns. Increasing concerns about 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. However, major hurdles that are expected to negatively affect the growth of microcars include restricted speed, limited power output and inadequate charging infrastructures for micro electric cars.
As stated by the new market research report on Micocars, Japan represents the largest market for microcars. 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 Japan in recent times. The segment dominated new car sales in the country with over 35% share of total volume sales in 2012. Additionally, various leading car manufacturers such as Daihatsu, Mitsubishi and Suzuki are working towards electrification of Kei cars in order to tap future opportunities.
In the US, microcars have for long been a less successful venture, primarily because of the general preference among Americans for large roomy cars. However, popularity of microcars is increasing in recent times following growing consumer demand for fuel-efficient cars amid high gasoline prices. Manufacturers are also addressing customer concerns for safety by offering cars with an array of features and add-ons on par with the premium and large segment cars. In Europe, the market is also expected to gain steam with the entry of leading vehicle manufacturers. In addition, government subsidies, parking fee exemptions, development of infrastructure facilities for EV recharging no-license policy, are also expected to boost microcar sales.
In China, the segment offers lucrative growth prospects due to the presence of a large target base comprising approximately 260 million bicycles and bike owners. While the low-cost compact cars hold strong growth potential in the Indian market, increasing disposable incomes and changing consumer lifestyles highlight an increasing propensity among consumers to switch to compact sedans and premium hatchbacks over smaller cars.
Key players profiled in the report include Daimler AG, Grecav Auto Srl, Mahindra REVA Electric Vehicles Pvt. Ltd., PSA Peugeot Citroën SA, Piaggio & C. Spa, Renault SA, Tata Motors Limited, and Toyota Motor Corporation, among others.
The research report titled “Microcars: A Global Market Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in Units for major geographic markets including the US, Japan and Europe.
For more details about this comprehensive market research report, please visit –
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 more than 1300 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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