SUV Market to Grow with a CAGR of 6.31% in South America through to 2028

The major drivers for the South America SUV market include consumer demand for versatile and spacious vehicles suitable for varied terrains, economic growth that increases purchasing power, and the preference for SUVs as family vehicles in the region.

According to TechSci Research report, “South America SUV Market – Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the South America SUV Market stood at USD 110 Billion in 2022 and is anticipated to grow with a CAGR of 6.31% in the forecast period, 2024-2028. The South America SUV market is driven by a multitude of factors that have shaped its growth trajectory. One of the primary drivers is the evolving consumer preference for vehicles that prioritize safety features and offer ample space. This shift in preference reflects the growing awareness and concern for passenger safety among consumers in the region.

Additionally, the improved economic conditions and increasing buying power of consumers in South America have played a significant role in driving the SUV market. As economies in the region continue to thrive, more individuals are gaining access to higher disposable income, allowing them to afford and invest in SUVs.

Furthermore, the market growth is fueled by the expanding middle-class population in South America. As more individuals ascend into the middle-income bracket, their aspirations for a better lifestyle and higher social status are driving the demand for SUVs, which are often seen as symbols of luxury and success.

Moreover, the rise of eco-friendly electric SUVs has emerged as a crucial factor in driving the South American SUV market. With increasing environmental awareness among consumers, there is a growing demand for vehicles that align with sustainable practices. The advent of electric SUVs that offer reduced emissions and improved fuel efficiency caters to this rising demand and contributes to the overall market growth.

In summary, the South America SUV market is experiencing significant growth driven by changing consumer preferences, improved economic conditions, a growing middle-class population, and the emergence of eco-friendly electric SUVs. These factors collectively shape the market landscape and present exciting opportunities for both manufacturers and consumers in the region.

Browse over 26 market data Figures spread through 91 Pages and an in-depth TOC on “South America SUV Market” 

The South America SUV market is a significant and dynamic segment within the automotive industry, characterized by evolving consumer preferences, diverse product offerings, and regional economic conditions.

The South America SUV market is substantial and continues to grow steadily. SUVs have gained popularity among consumers in the region due to their versatility, spacious interiors, and suitability for various terrains. This segment has consistently shown positive growth trends, with consumers across South American countries increasingly opting for SUVs as their preferred mode of transportation.

Automakers in South America offer a wide range of SUV models, catering to diverse consumer needs and preferences. These offerings encompass compact and subcompact SUVs for urban commuting, midsize and full-size SUVs for families and outdoor enthusiasts, and luxury SUVs that combine style and performance. This diversity ensures that consumers have a broad spectrum of choices to suit their specific requirements and lifestyles.

One notable trend in the South America SUV market is the growing demand for compact and subcompact SUVs. These smaller SUVs provide agility, fuel efficiency, and maneuverability, making them appealing options for consumers in congested urban areas. Additionally, compact and subcompact SUVs offer a practical alternative to traditional sedans, with elevated driving positions and versatile cargo space.

Environmental concerns and the shift toward sustainability have led to a rise in demand for eco-friendly SUV options in South America. Hybrid and electric SUVs are gaining traction as consumers become more conscious of their carbon footprint. Automakers are responding by introducing hybrid and electric SUV models that offer reduced emissions and improved fuel efficiency, aligning with the region's commitment to environmental conservation.

Connectivity and infotainment features have become central to the South America SUV market. Consumers expect their vehicles to offer seamless integration with smartphones, advanced touchscreen displays, and a range of connectivity options. SUVs now come equipped with features such as Apple CarPlay, Android Auto, voice recognition, and in-car Wi-Fi. Automakers continue to invest in technology and connectivity to enhance the driving experience and cater to consumers who prioritize staying connected while on the road.

Safety is a top priority for South American consumers, and this is reflected in the trend of automakers equipping SUVs with advanced safety features and driver-assistance systems. These technologies include adaptive cruise control, lane-keeping assist, automatic emergency braking, blind-spot monitoring, and pedestrian detection. The availability of such technologies enhances passenger protection and contributes to the overall appeal of SUVs. As safety regulations and consumer expectations evolve, automakers are making continuous improvements to safety features.

Customization and personalization have become significant factors in the South America SUV market. Automakers are offering a wide range of trim levels, packages, and customization choices, allowing buyers to tailor their SUVs to their specific preferences. This trend ensures that SUVs cater to diverse consumer tastes and requirements, allowing buyers to create vehicles that reflect their individuality.

In conclusion, the South America SUV market is characterized by its substantial size, diverse product offerings, and evolving consumer preferences. The market encompasses a wide range of SUV models, from compact urban SUVs to luxury options, with an increasing focus on eco-friendly and technologically advanced features. These trends reflect the region's changing automotive landscape and the growing appeal of SUVs among South American consumers.

Major companies operating in South America SUV Market are:

• Ford Motor Company
• General Motors
• AUDI AG
• Kia Motors Corporation
• Groupe Renault
• Groupe PSA
• SAIC Motor Corporation Limited
• Tesla Inc.
• Daimler AG
• BMW AG
• Mahindra & Mahindra Limited  
  
  

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“The major drivers for the South America SUV market can be attributed to various factors. Firstly, the changing consumer preference towards vehicles with greater safety features and more space is a significant factor for driver. Secondly, improved economic conditions, increasing buying power, and a growing middle-class population also contribute to the market growth. Further, the advent of eco-friendly electric SUVs that cater to the rising environmental awareness amongst consumers is another crucial factor driving the South American SUV market.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“SUV Market – South America Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented Market By Length (SUV-C, SUV-D, SUV-E and SUV-F), By Transmission Type, By Fuel Type (Diesel, Petrol and Hybrid & Others), By Country, Competition”, has evaluated the future growth potential of South America SUV Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in South America SUV Market.        

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