The increasing demand for affordable and fuel-efficient vehicles, increasing traffic congestion on roads, along with the rising environmental concerns, is driving the growth of the global micro car market. Government initiatives to promote the use of electric vehicles and rising disposable income are some of the other factors expected to contribute to the growth of the market. In addition, the emergence of shared mobility services such as ride-hailing and online grocery delivery services is another major factor driving the market growth. However, low engine power and high cost of battery packs is expected to restrict the market growth during the forecast period.
Furthermore, the increasing concern towards environment pollution is among major factors driving the growth of micro cars. Government of various countries implementing strict regulations to reduce vehicular emissions. Thus, it is encouraging automobile manufacturers to focus on advanced technologies in vehicles to reduce carbon emissions. For example, in November 2022, European Commission proposed new Euro 7 standards to reduce air pollution from motor vehicles.
Technological Advancements in Micro Cars
The major technology trends expected to impact the micro cars market are increasing focus towards autonomous driving, connected cars, and electric micro cars. Autonomous driving technology is becoming more and more popular in this market, with companies such as Honda, Toyota, and Volkswagen all having already released autonomous micro cars. Similarly, electric vehicles are becoming increasingly popular in the micro car market, with companies such as Chevrolet, Nissan, and Mitsubishi all offering electric micro cars with advanced safety features such as blind spot monitoring, lane departure warning, and automatic emergency braking. For instance, in May 2022, NMKV Co., a joint venture formed by Nissan Motor Co. and Mitsubishi Motors Corporation launched all-new Kei EV in Japan.
By type: The micro cars market is categorized by type: three-wheeled microcars, four-wheeled microcars.
By propulsion: The micro cars market is segmented by propulsion namely, ICE, electric, and hybrid.
By application: The micro cars market is divided by application: personal and commercial.
The global micro cars market has been segmented based on the region; North America, Europe, Asia-Pacific, LAMEA. Asia-Pacific micro cars market is expected to grow at a significant rate during the forecast period due to the increasing urbanization, increasing middle-income population, and rising focus on smart cities. Moreover, the automobile manufacturers are launching new products with advanced features.
Companies are expanding their geographical presence by launching their products with advanced features. For instance, Squad Mobility, a Dutch EV start-up launched its solar electric car in the U.S. at worth $6,250. It is a small two-seater micro car with solar panel on top. Similarly, in November 2022, Fiat Automobiles S.p.A. announced to relaunch its micro car namely Fiat 500e in the U.S. in 2024.
Competitive analysis and profiles of the major players in micro cars market, such as Daihatsu Motor Co. Ltd., Daimler AG, General Motors Company, Groupe PSA, Groupe Renault, Honda Motor Co. Ltd., Mazda Motor Co., Nissan Motor Co. Ltd., Suzuki Motor Co., and Toyota Motor Co. are included in the report. This section includes the key financial metrics, operating segmentation, business description, geographical coverage, and recent developments by the company in the area of micro cars market. There are some other important players in the market such as BMW AG, Citroen, LIGIER Group, Piaggio & Co., Mahindra Electric Mobility Ltd., Micro Mobility Systems, PMV Electric, Squad Mobility, Subaru and others.
With the increased focus on safety, the market is becoming increasingly competitive. Companies are competing for market share, that is constantly intensifying the market rivalry. This has led to competitive prices, as well as an increase in the number of features and services being offered. The market players are competing on various grounds like price, geographical presence, automation, innovation and others. Moreover, new players are tapping the market with advance technologies, so increasing number of new entrants in the market is also increasing the market competition. For instance, PMV Electric is an Indian start-up, founded in 2018. In November 2022, PMV Electric launched EaS-E, a smart two-seater micro car for everyday usage. This vehicle is available in three variants that ranges from 120 km to 200 km.
Micro Cars Market Report Highlights
Key Market Players
Groupe Renault, Honda Motor Co., Ltd., Nissan Motor Co., Ltd., Toyota Motor Corporation, Daimler AG, Mazda Motor Corporation, Suzuki Motor Corporation, Groupe PSA, General Motors Company, Daihatsu Motor Co. Ltd.