The Global Microcars Market is Projected to Reach 3.6 Million Units by 2024

Focus on Faster, Smarter and Greener Modes of Urban Mobility Drives the Global Microcars Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Microcars markets. The global Microcars market is projected to reach 3.6 million units by 2024, driven by worsening traffic congestion in cities worldwide; clampdown on vehicular emissions and the resulting demand for faster, smarter and greener modes of urban mobility. 

Globally, over 60% of people are expected to reside in urban areas through 2030, creating a lot of challenges the transportation sector. To address this concern, several governments, Original Equipment Manufacturers (OEMs), and technology companies are devising a broad range of innovative strategies. Within Europe, the Netherlands is actively promoting microcars to mitigate environmental effects of personal transportation. In order to tap the available opportunity, various leading OEMs and automobile manufacturers are making a foray into the segment. While electric cars are seen more frequently on the streets of Europe, electric microcars are still a niche segment. Electric microcars are typically grouped with mopeds through EU’s L-Category classification. Examples of electric microcar models include Aixam and Renault Twizy quadricycle. The environmental credentials of these cars are convincing though. The cars use just a fraction of the energy required for regular sized electric cars. The energy consumption of Twike, which is a human power-assisted 3-wheeler produced in Germany, is just 5kWh/100km, about 25% of 21kWh/100km consumed by the Tesla Model S.

Major automotive OEMs are slowly but surely entering the market. While Honda voiced intentions to launch its own E-scooter EV-neo, General Motors entered into partnership with Chinese OEM SAIC for developing EN-V. Based on an advanced technology, EN-V features vehicle to vehicle communication mechanism that enables commuters to easily identify shortest travelling routes. Similarly, Volkswagen introduced Bike.e, an electric bike. Propelled by constantly increasing demand, various startups are now entering the personal mobility and EVs market. For instance, Uniti, a Sweden based company entered into partnership with Siemens for developing an advanced Micro EV. The sustainable vehicle is expected to play an important role in streamlining traffic and minimizing air pollution owing to its compact size, bio-composite design, and small battery size.

Microcars are gaining popularity amongst the Gen-Y consumers who prefer to commute on a sharing basis as well as among other car operators across the world. While new features have been able to revive the interest in microcars, style and new designs have added to its appeal. Manufactures are also choosing international platforms and venues to showcase their products, which goes onto prove their increasing popularity. The market is expected to witness the introduction of a large number of microcar variant models in the near term as manufacturers gear up to address the growing demand for eco-friendly and fuel efficient cars. While prospects for microcars remain bright, the segment has its own share of challenges to overcome. Major hurdles that are expected to negatively affect the growth of the segment include concerns regarding the price range and restricted speed. Factors such as stringent regulatory measures, projected increase in the prices of the cars amidst new legislative recommendations and safety concerns are also expected to negatively affect the segment.

As stated by the new market research report on Microcars, Japan represents the largest regional market worldwide, followed by Rest of World region, comprising mostly of other Asian markets. Japan, the bellwether for microcars, has been witnessing headwinds owing to the retraction of preferential tax policy for microcars/kei cars. Proactive policies are expected to enable Europe to post the fastest growth among all regions, with a CAGR of 6.7% over the analysis period, albeit from a low base. The United States, on other hand, is expected to continue to grapple with negative consumer perceptions of small cars. The market is projected to register healthy growth but with marginal volumes compared to the overall automotive market.

Key players in the market include Daimler AG, Mahindra Electric Mobility Limited, Nissan Motor Co., Ltd., Groupe PSA, Piaggio & C. Spa, Renault S.A., Suzuki Motor Corporation, Tata Motors Limited, Toyota Motor Corporation, and Daihatsu Motor Co., Ltd. among others.

The research report titled "Microcars: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, innovations and launches, and strategic industry activities of major companies worldwide. The single segment report provides market estimates and projections in units for Microcars/Microelectric Vehicles for major geographic markets including the US, Japan, Europe, and Rest of World.

For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com


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