Luxury Car Market is segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle), by Driving Type (IC Engine, and Electric), by Region (United States, Canada, Mexico, France, Germany, Italy, Spain, United Kingdom, Russia, China, India, Philippines, Malaysia, Australia, Austria, South Korea, Middle East, Japan, Africa, Rest of World) and Luxury Car Market companies (Daimler AG (Mercedes-Benz), Bayerische Motoren Werke AG (BMW), Volvo Group, Volkswagen Group, Jaguar Land Rover Automotive PLC, Fiat Chrysler Automobiles, Ford Motor Company, FAW Car Company, Hyundai Motor Group, and Tesla Inc.)
The Luxury Car Market was estimated at USD 459,288.2 million in 2021 and is forecast to grow at a CAGR of 8.9%.
The concept of luxury cars refers to passenger vehicles that provide advanced features, high quality, a high level of equipment, and enhanced comfort to the passengers. In addition to hatchbacks, sports utility vehicles, sedans, and even minivans, luxury cars are also available in luxury vehicle categories. A luxury car may also offer automated safety features, entertainment systems, and integrated seat massagers. In addition, luxury cars are usually more expensive than traditional automobiles and have high-end interior and exterior materials.
Electric luxury cars are becoming more popular, driving the market growth
Around the world, governments are tightening emission standards for automobiles due to the growing concern about the environment. Due to these factors, electric vehicles, which are green and sustainable, are in great demand. In addition, governments in various countries provide higher subsidies for these car owners. The UK government, for instance, provides tax payers with incentives of USD 7600 per electric car. Also, the preference for luxury brands is gradually increasing as disposable income and net wealth grow for individuals.
Pre-owned luxury car demand to boost the luxury car market sales
Pre-owned luxury vehicles are consistently in demand among car dealers since these vehicles are often sold by owners after one or two years of use in order to upgrade to better models. To meet the demand, the used luxury vehicle market is becoming more systematized, with easy access to financing, lower entry prices, and annual maintenance contracts. Maruti Suzukis True Value in India, for example, offers a two-year warranty along with other benefits. Due to the high level of consumer confidence, the sale of pre-owned luxury cars is also expected to increase. Consequently, luxury cars will become more widespread during the forecast period.
The luxury car market experiences fluctuations in sales owing to the high price of the product
Compared to conventional vehicles, luxury cars are extremely expensive due to their luxurious and advanced features, such as high-quality parts and expensive materials. Additionally, it costs more to manufacture cars that have luxurious features and options than cars that have universal features. A large part of the selling price for luxury cars is used to pay for their development due to the low sales of these cars. Because of this, the high cost of luxury vehicles is expected to hamper the market growth.
|Base Year (2021) Market Size||$534,288.3 Million|
|Forecast Period CAGR||5.2%|
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; List of Mega Projects; Major Contracts Won by Key Players; End User Capacity & Workforce Analysis; Company Profiling
|Market Size by Segments||By Vehicle Type, By Drive Type, By Region|
China has the highest growth potential in the luxury car market.
The Chinese luxury car market has always been strong for manufacturers like Audi, Mercedes-Benz, BMW, Lexus, and Volvo. In April 2020, the countrys luxury car dealers sold 277,000 vehicles, an increase of 11.1% over April 2019. Luxury car sales made up 18.7% of the market in April 2020, a 3.6% increase over April 2019 and a 0.4% increase over March.
In Asia-Pacific, India is also among the fastest-growing luxury car markets. The market, however, recorded its lowest figure due to COVID-19. The overall share of luxury car players in the total passenger vehicle market decreased to 0.50% in July 2020 from 1.11% in July 2019. In July 2020, Indian luxury carmakers reported a 59% drop in sales.
Local companies were able to introduce their luxury models in the midst of the pandemic when major European carmakers were unable to maintain their supply chains. Hongqis 2020 H9, for example, was designed by Rolls-Royces former designer Giles Taylor and stylist Dinh Yanfeng. China is also Mercedes-Maybachs biggest market. Mercedes-Benz sold around 12,000 Maybachs in Germany in 2019.
Daimler AG is the top player offering high-end automobiles across the world
Besides building high-end automobiles, Daimler is also a major commercial vehicle manufacturer. Finance, leasing, insurance, and innovative mobility services are offered by the company. BMW and Mercedes are the market leaders for luxury sedans in India. Mercedes India sold 2,386 vehicles in 2020s first three months, followed by BMW India with 2,365 vehicles. In the second quarter, the market was impacted by the pandemic and began to rebound in the third. Mercedes-Benz India sold over 7,893 new cars during the January-December period of 2020.
In India, luxury carmakers sold 198 CBU BEVs, contributing to 0.7% of the market for luxury cars. Audi leads the race of luxury BEVs with 96 sales in less than 9 months. Additionally, Jaguar had a 35% market share with I-Pace available in three variants. In response to the arrival of other competent BEV products, Mercedes was able to sell only 30 of their low-slung, uninspiring EQCs. Thats why Mercedes quietly reduced the price of EQC in January 2022. Three iXs were sold by BMW since launch in December 2021 until March 2022, which suggests that iXs are mostly used for launch and media events.
Mercedes is doing well in the Indian market with a good lineup of diesel engines. Despite its end-of-life status, the C-Class sold well in 2021. It is no wonder why Mercedes Benz India MD believes 2022 will be the year when it sells the most cars. Mercedess cause is also helped by the absence of diesel-powered Audi SUVs and sedans. In India, it seems, people prefer luxury and comfort over sportiness in products.
Years considered for this report
• Historical Years: 2018-2020
• Base Year: 2021
• Forecast Period: 2022-2032
Luxury Car Market Research Report Analysis Highlights
• Historical data available (as per request)
• Estimation/projections/forecast for revenue and unit sales (2022 – 2032)
• Data breakdown for application Industries (2022 – 2032)
• Integration and collaboration analysis of companies
• Capacity analysis with application sector breakdown
• Business trend and expansion analysis
• Import and export analysis
• Competition analysis/market share
• Supply chain analysis
• Client list and case studies
• Market entry strategies adopted by emerging companies
Industry Segmentation and Revenue Breakdown
Vehicle Type Analysis (Revenue, USD Million, 2022 - 2032)
• Sports Utility Vehicle
Drive Type Analysis (Revenue, USD Million, 2022 - 2032)
• IC Engine
Country Analysis (Revenue, USD Million, 2022 – 2032)
• North America
• United States
• United Kingdom
• Rest of the Europe
• South Korea
• Rest of the APAC
• Rest of the World
• Middle East
• Rest of the World
Luxury Car Market companies:
• Daimler AG (Mercedes-Benz)
• Bayerische Motoren Werke AG (BMW)
• Volvo Group
• Volkswagen Group
• Jaguar Land Rover Automotive PLC
• Fiat Chrysler Automobiles
• Ford Motor Company
• FAW Car Company
• Hyundai Motor Group
• Tesla Inc.
Available Versions of Luxury Car Market Report: -
United States Luxury Car Market Research Report
Europe Luxury Car Market Research Report
Asia Pacific Luxury Car Market Research Report
India Luxury Car Market Research Report
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