A passenger vehicle is a road motor vehicle designed to carry maximum of nine passengers, including a driver. Though it is considered to be a common mode of passenger conveyance in developed countries, demand for passenger vehicles is also picking up in emerging countries owing to growing per capita income. Commonly passenger vehicles follow original equipment manufacturer (OEM) affiliate dealership model for its sale.
Global passenger vehicles market is primarily categorised into four segments namely, small, medium, large and premium segments. Of these, small passenger vehicles segment dominates the market by contributing almost 40% to the market sales and is growing at a faster rate. Presently, industry is witnessing high demand for special utility vehicle (SUVs) mainly due to rise in tour and leisure activities. Emergence of vehicle financing market is encouraging consumers to buy passenger vehicles, thereby further driving the market growth.
Global passenger vehicles market has been experiencing high volatility in demand since past few years because of instability in global economy and oil and gas sector. In addition, regular fluctuations in prices of raw materials such as plastic, iron and steel are also impacting the growth of overall passenger vehicles market. Consequently, many OEMs are opting for vertical and horizontal integration of their operations to reduce their production costs. Many major OEMs are also investing in regional/local manufacturing facilities to increase their supply network which will help in reducing overall cost and diminish trade barriers. Conversely, in case of luxury/premium segment, OEMs are trading on per-sales basis rather than establishing regional manufacturing facilities due to limited demand.
Global passenger vehicles manufacturers are investing heavily on research and development in order to meet changing customer preferences. The research and development activity has also picked up in the sector because of increasing demand to produce low emission and fuel efficient vehicles conforming to environmental standards. Consequently, various hybrid and electric passenger vehicle models are emerging.
ASDReport.com has an extensive collection of reports on passenger vehicles market. The reports cover various segments and components of market like monitoring systems, thermal management, SUV & crossover market and much more.