Hi,

Several steps:

1) Calculating the number of private vehicles

• Use the number of households in US
• Average number of cars per household
• Apply the growth rate (E.g. growth of the economy as a proxy)

2) Calculating the number of Commercial vehicles

• You can say for example that every 8th or 10th car is commercial based on your observations

3) Calculating the size of the market

• You can apply the average cost of insurance that the interviewer provides
• Take into account that the replacement rate for insurance may be more than 1 year in certain commercial cases
• Don't forget that cars like taxi have multiple insurances (taxi / non taxi mode)
• You can also segment commercial vehicles further into Trucks, etc

Best

Hi there,

Providing some market sizing thinking for anyone revisiting this Q&A:

Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the problem the way it makes sense to you. Importantly, break it down so that the assumptions you make are the ones you're most comfortable in.

For example, do you know all the major brands? Great go with that. Do you understand all the segments of that country's population (either age or wealth or job breakdown)? Go with that. Do you know the total market size of the tourism (or hotel) industry? Then break it down that way.

Some tips:

1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
2. Decide whether a top-down or bottom-up approach is best
3. Figure out what you know you know, and what you know you don't know, but could estimate
   1. This helps you determine how to split out buckets
4. Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits