Small Car in the City

Small car in the city

A city car is a small car , who intended for use primarily in the city. They have one or two in their line-up. In Japan, small cars are called K-CAR. K-cars have to be less than 3.4m long and 1.48m wide, while the engines can be no bigger than 660cc and develop less than 64bhp. Market potential


Because of saving energy and protecting environment,more and more automobile companies are concerned about the K-CAR. Some manufactories, which produced K-CAR, increase its productivity and rise the type of small cars . Meanwhile, others , which have not these type of products ,are launching it from 2006.Moreover, since the oil price grows constantly, many families have to enhance the expenses of gasoline. Thus, some potential customers would like to buy the K-CAR instead of the small car. Therefore, there is a huge market potential of small car in Japan. USA

Because of High oil prices, Americans finally changed consumer attitudes. More and more people like a city car. Many people get quality car as a second family car. France

Customer especially for the people who begin to work and the people who just start the new family

Market size
Japan new car sales quantity
2010| 2011|
3,229,716| 4,210.000|
The sales volume of K-CAR is tremendous in Japanese automobile industry. Since to the end of March in 2008, there were 254.61667 million K-CARs in Japan(about one-third of the whole automobile industry). Moreover, in recent years, the sales volume of other type cars reduced to 1-2% while the number of K-CAR growed to 1-3%. Therefore, the market size of small cars is sizable. France new car sales quantity

2008| 2009| 2010|
2,050,000| 2,300,000| 2,252,000|
USA new car sales quantity
2010| 2011|
11,589,844| 12,778,335|
From sales analysis, there are a lot of some people to buy new car, and new car sales is increase.


Political| In Japan , has some policies to encourage citizens to buy K-CAR. This type of cars will gain a license plate, the owners can park their car anywhere. Moreover, the tax and other cost of K-CAR are lower than general type cars.| The U.S.A calculates corporate average fuel economy on the basis of sales weighting of all models, the smaller GM vehicles were needed mostly to comply with federal law. | France has the systems of taxes and rebates for consumers that are based upon the CO2 emissions of the new cars that they buy.| | Economic(a hundred million)| 2009 GDP $ 50329.82010 GDP $ 54588.72011 GDP $ 55680.474| 2009 GDP $ 141190.52010 GDP $ 146578.12011 GDP $ 149509.662| 2009 GDP $ 197202010 GDP $ 20114.4| | Who buy| in recent years ,olds and young females become the main customers. | some people who live in city.| Customer especially for the people who begin to work and the people who just start the new family| | Why do they need| 1. It is emissions small, low fuel consumption, travel cost savings, and still can environmental protection and energy saving, fuel economy2. small car development has been for a long time, mature technology, in other words, stable quality, maintenance convenient save money;3. small car modelling are often more fashionable and full of individual character4. when parking is more easily .| | Competition| In recent years , Suzuki, Mitsubishi and Daihatsu, three famous Japanese automobile companies, focus on producing new high quality products. For instance, Sonica, which is launched by Daihatsu, dispose turbo engine equipped with newly developed CVT (Continuously Variable Transmission) achieving smoothly controlled yet powerful driving force, with low fuel consumption (2WD: 23.0 km/L*3, lowest among the class*2; 4WD: 21.0 km/L*3). And the price is between $9600 and $13000; Cervo, which is launched by Suzuki, has bluetooth system、keyless entry system and the two-wheel or four-wheel drive.| Versa is the first ,its internal space is larger, and there is unique technology of Japanese automobile.T he standard of engine was limited lower 660cc, which is smaller than the energy of big moto. But this type of cars have a high performance. In fact, when it spends 1L oil, its driving distance is about 15.0km| Many company sell the small car for instance suzuki , smart ,mini cooper ,renult etc.| Market forecast

With the continued growth of GDP, for the mini-car market provides a good macroeconomic environment. Some advantages of small car for the city

  1. With rising oil prices, les people changed consumer attitudes. And small car for the city lower engine is positive for people to save oil espense.
  2. Some support policies, small car for the city are cheaper.
  3. Because of the small volume, it is easier for people to drive and control, especially for the neophyte.
  4. Change the image of small cars.

With the development of the technology, small car becomes more and more safety. And small car are more fashionable and full of individual character However, the engine of small car in the city can not run fast enough when the driver wants to accelerate. And for the small car is damaged more easily than other type cars. So we need to improvements in technology But for the future, we think that more and more people will buy city car in any country, and will not only young people, or female, old man, to buy it , more middle-aged people buy it also. For example, in U.S.A, we should more division markets, in view of the different consumer groups, design wider selection of models and styles, to meet different consumer groups’ demands .Such as for young people, to more individual character, For women, should pay attention to in the more beautiful. In order to carry out the success of the middle-aged people, we can put small cars are more costly design. According to the second family transport, to more practical.. individual character| fashionable| Space and comfortable| luxurious| young

We can also expand the mini high-end market, now high-priced mini coupe sales in the middle level, indicating that high-priced car is still accepted by many people, so we should develop high-end market, the development of high-end market in different series to attract more middle-aged or young successful people.

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