Due to amenities like entertainment systems, built-in seat massagers, and autonomous safety measures, luxury automobiles are becoming extremely popular with consumers. High-end materials and finishes are common in luxury automobiles.
The Luxury Vehicle market is expected to grow at a CAGR of 6.7% to reach USD 22.2 billion in 2028.
Covid 19 Impact & Market Status
In the near term, the COVID-19 pandemic had a substantial influence on the luxury automobile sector, with sales and manufacturing declining in 2020. Furthermore, the epidemic had an impact on everyone's purchasing power. The market, on the other hand, has steadily regained its lost pace since the limitations were relaxed.
China now has the largest development potential in the luxury automobile industry among all emerging countries. Premium automakers like Audi, Mercedes-Benz, BMW, Lexus, and Volvo have continually maintained strong growth in the Chinese luxury auto market. The China Automobile Dealers Association reports that the country's luxury car dealers sold 277,000 automobiles in April 2020, an increase of 11.1 percent from April 2019. Sales of premium vehicles made up 18.7% of the market in April 2020, a 3.6 percent rise from April 2019 and a 0.4 percent increase from the market share in March.
A market with the fastest growth in Asia is India. On the other side, COVID-19 caused the market to reach its lowest point. The overall share of luxury car manufacturers in the global passenger vehicle market decreased to 0.50 percent in 2016, according to the Federation of Automobile Dealers Associations (FADA). The 10 luxury carmakers in India reported a 59 percent reduction in demand in July 2020, according to sales statistics.
Rise of Demand
Because luxury automobiles are more expensive than ordinary vehicles, they are nearly an unavoidable status symbol for ultra-wealthy people. Furthermore, luxury car sales in emerging nations are increasing at a rapid pace. In 2017, for example, the luxury automobile market in India sold 20,000 units in the first half of the year. Furthermore, sales of these automobiles increased by 15% from 2016 to 2017, reaching 39,000 units. Furthermore, luxury car sales are growing at a far higher rate than the general passenger vehicle industry. As a result of this increase in demand for premium automobiles in emerging nations, the luxury car industry is expected to grow.
A luxury car is one that provides luxury (features that are pleasant or desired beyond necessary) at a premium price.
Luxury Vehicles may also be described as a vehicle with higher-quality equipment, greater performance, more exact construction, comfort, higher design, and technologically new elements that transmit an image, brand, status, or prestige to a person in society. Luxury automobiles are more comfortable than other vehicles. There is a set of car models that are expensive to buy in every era of automobile history owing to their supposed excellence in design and engineering. These vehicles are referred to be luxury automobiles since they were designed for rich buyers. Automobile manufacturers provide a variety of models that are tailored to specific socioeconomic groups based on their income and style of living.
From 2019 through 2029, the worldwide luxury automobile market is expected to grow at a CAGR of 5.2 percent, from $482.7 billion in 2018 to $722.2 billion in 2029.
Luxury car manufacturers can be standalone enterprises like BMW and Mercedes, or divisions or subsidiaries of a mass market automaker like Ford (Lexus part of Toyota). BMW, Mercedes-Benz, Rolls-Royce, Jaguar, Audi, Bentley, Lamborghini, Volvo, Ferrari, Land Rover, Lexus, and Cadillac are some of the prominent players in this sector.
Latest Innovation in the Luxury Vehicle Market: A Snapshot
The market for luxury cars has been stimulated by a significant rise in the number of luxury-oriented vehicle alternatives, a shift in consumer preferences from sedans to SUVs, and growing disposable incomes. However, a rise in import duties is projected to stifle the luxury automobile market's expansion. For example, the President-elect of the United States is likely to raise import levies on German luxury vehicles. Electric car sales are increasing dramatically, owing to tough pollution standards imposed by governments throughout the world and a growing demand for fuel-efficient automobiles. As the demand for electric vehicles grows, several top automakers, such as Tesla, are releasing new electric vehicle models. Furthermore, prominent luxury and high-end luxury & performance automobile companies such as Mercedes-Benz, Porsche, Royce, and Bugatti announced the launching of their own luxury electric vehicles to fulfil emission requirements in 2019. As a result, the manufacture of electric luxury automobiles to fulfil severe emission rules presents a significant potential opportunity for luxury car industry participants.
Luxury Vehicle Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 722.2 billion|
|Growth Rate||CAGR of 5.2 % during 2021-2028|
|Segment Covered||Type, Drive Type, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||BMW, Mercedes-Benz, Rolls-Royce, Jaguar, Audi, Bentley, Lamborghini, Volvo, Ferrari, Land Rover, Lexus, and Cadillac & among others.|
Key Segments of the Luxury Vehicle Market
Type Overview, 2019-2029 (USD Billions)
Drive Type Overview, 2019-2029 (USD Billions)
- IC Engine
Regional Overview, 2019-2029 (USD Billions)
- Rest of Europe
- Rest of Asia Pacific
- Rest of Latin America
Middle East and South Africa