Passenger vehicles are the most common mode of conveyance in the developed
countries and they are increasing in numbers in the developing countries
as well due to increasing per capita income. Passenger vehicles market in a country is by large dependent on its present economic condition
which is why this industry tumbled down during the U.S. and European
recessions.
Many of the passenger vehicle manufacturers including General Motors, Ford
and Chrysler had to seek for a heavy sum of loans to continue
manufacturing in the weaker economic situation due to low demands.
Passenger vehicles market can be segmented into four segments namely
small, medium, large and premium.
The demand for Special Utility Vehicles (SUVs) has surged in recent times
due to the increasing leisure and tour activities globally. Small cars
are also growing at a fast pace as they find less traffic on the road as
compared to large passenger vehicles.
The emerging vehicle financing market has been encouraging the passenger
vehicles industry wherein the customers are provided loans to own the
vehicle. Owning a passenger vehicle is observed as a sign of social
status in most of the developing countries, however nowadays they are
being purchased by the middle class families also.
Increasing raw material prices is one of the greatest concerns for the passenger
vehicles market. The prices of iron, steel and plastics have soared to
high levels in recent times which have led to an increase in the price
of passenger vehicles to consumers.
Passenger vehicles market is largely dependent on research and development where
their products need to deliver the real-time customer requirement in
order to remain competitive. Additionally, the governments are putting
pressures on the passenger car manufacturers to produce efficient and
low-emission vehicles which have intensely pressurized the latter to
engage in research and development works.
European Emission Standards (EURO I, EURO II, EURO III, EURO IV and EURO V),
Corporate Average Fuel Economy (CAFE) and Federal Motor Vehicle Safety
Standards (FMVSS) are few of the most common emission standards followed
in the global regions. The electric and hybrid passenger vehicles are
catching the market due to their fuel efficiency and low emission. In
general, the production process of new model of a passenger car takes
about two and a half to three years.
Regional Outlook
Passenger vehicles are mostly sold through independent dealerships affiliated
with a manufacturer. The demand calculation by the passenger vehicle
manufacturer determines the number of vehicles to be sent at a
particular dealer location. Most of the passenger vehicle companies put
their manufacturing facility in country where they sell them to avoid
transportation costs, currency fluctuation risks, and trade barriers.
However, premium passenger vehicles are mostly traded as their per-unit sales is
low and setting up manufacturing plant for them would not incur
benefits. Passenger vehicle manufacturers have integrated horizontally
than vertically to reduce production cost wherein they source their
parts and components from vendors instead of manufacturing them.Among
regions, Asia Pacific was the largest passenger vehicle market in 2013
followed by Europe.
Asia Pacific is expected to continue with its leadership position by 2020
due to its growing population and increasing per capita income. The key
companies operating in global passenger vehicles market are General
Motors, Volkswagen, Toyota, Hyundai, Ford, Nissan, PSA Peugeot Citroen,
Honda, Suzuki and Renault. Most of the top passenger vehicle
manufacturers in 2013 belonged to Japan and the U.S.
Report Highlights:
- Detailed overview of parent market
- Changing market dynamics of the industry
- In-depth market segmentation
- Historical, current and projected market size in terms of value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and product offerings
- Potential and niche segments/regions exhibiting promising growth
- A neutral perspective towards market performance
- Must-have information for market players to sustain and enhance their market footprint
