Luxury Car Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, Segmentation

Luxury Car Market Overview:

Luxury cars are passenger vehicles that are designed to provide advanced features, high quality, a higher level of equipment, and enhanced comfort. Luxury cars are available in all vehicle categories, including hatchbacks, SUVs, sedans, and even minivans. Luxury vehicles also include features such as automatic safety features, entertainment systems, and integrated seat massagers. Furthermore, luxury cars are more expensive than traditional automobiles and typically have high-end materials and finishes on the exterior and interior of the vehicle.

 

Moreover, due to growing environmental concerns and rising fuel prices, major luxury car manufacturers are introducing electric variants of their vehicles, which may accelerate the growth of the luxury car market over the forecast period (2024-2030).

 

 

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Luxury Car Market Dynamics:

A significant increase in tangible luxury offerings in vehicles, a shift in consumer preferences from sedans to SUVs, and rising disposable incomes have fueled global demand for luxury cars. An increase in import tariffs, on the other hand, is expected to stifle the growth of the luxury car market. For example, the US President-elect is expected to raise import tariffs on German luxury vehicles. BMW and other German luxury car manufacturers may face a 35% import duty on vehicles not manufactured in the United States.

• The increase in global electric vehicle (EV) sales is one of the major factors driving the growth of the luxury car market. Because of rising environmental consciousness, consumer preferences are rapidly shifting toward luxury passenger and commercial electric vehicles (EV).
• Technological advancements such as the integration of all-EV charging station systems with the Internet of Things (IoT) and real-time information solutions are accelerating market growth. The technologies provide real-time data on the availability of available parking spots as well as the location of nearby charging stations.
• Rising demand for heavy and luxury vehicles, as well as an increase in diesel-powered vehicles, is accelerating market growth. Also, increase in the sales of passenger cars owing to the consumer preference toward economic vehicles assists in the expansion of the market.
• Governments of many countries are also providing higher subsidies for the electric luxury vehicles, this boosting the demand for such vehicles. For instance, the UK Government is providing a tax payer funded incentive of upto USD 7500 for each electric car.
• Moreover, the preowned luxury vehicle market is also growing because these vehicles are sold frequently after usage of about 1 to 2 years for better or newer models. For keeping up with this demand the market is becoming more organized with ease of financing, lower entry prices, annual maintenance contracts, etc.
• Furthermore, the expansion of the automotive sector, surge in investments, and increased disposable income benefit the luxury car market.

 

• High and ever-growing cost of luxury cars is Estimated to hinder the market growth.
• Moreover, Higher maintenance cost owing to the nature of the luxurious interiors and advanced features add to the cost, which is estimated to adversely affect the market.

 

Production of electric luxury cars

The number of electric vehicle sales is increasing dramatically, owing to stringent emission mandates imposed by governments around the world and a growing demand for fuel-efficient vehicles. As electric vehicle sales increase, many leading automakers, such as Tesla, are introducing new electric vehicle models.

 

Luxury Car Market Segment Analysis:

The global luxury car market is mainly segmented on the basis of vehicle type, fuel type, and region.

 

On the basis of vehicle type, it is divided into Sedan, and sports utility vehicle and Others.  The sedans held the largest share in the Global Luxury car market owing to the high sales of these cars. Moreover, recently an exponential rise in the SUV segment is also observed. SUV are estimated to grow at the fasted CAGR during the forecasted period (2024-2030).

 

 

By fuel type, it is categorized into IC Engine and electric. IC Engine - The IC engine segment currently dominates the market. However, demand for IC engine vehicles is expected to decline over the forecast period. At the moment, major players such as Mercedes-Benz, BMW, and Audi control a sizable portion of the luxury car market's drive type segment.

 

Electric – The electric vehicle segment is estimated to show tremendous growth during the forecast period, this is owed to the increasing awareness regarding the environmental effects and growing stringent emission regulations by government globally. Moreover, the performance offered by the Electric vehicles are also a major factor for its growing demand.

 

Luxury Car Market Regional Insights:

Regionally the Luxury Car market is segmented into North America, Europe, Asia Pacific, South America, Middle East & Africa.

 

Asia Pacific – Asia pacific is one of the largest markets for Luxury cars and India and China are the major players in this market.

 

China - China has the highest growth potential in the luxury car market of any developing country. Audi, Mercedes-Benz, BMW, Lexus, and Volvo have consistently maintained positive growth in the Chinese luxury car market. According to the China Automobile Dealers Association, luxury car dealers in the country sold 277,000 vehicles in April 2020, representing an 11.1 percent increase over April 2019. In April 2020, luxury car sales accounted for 18.7 percent of the market, a 3.6 percent increase over April 2019 and a 0.4 percent increase over the market share in March. Furthermore, China is one of Mercedes-most Maybach's important markets. Mercedes-Benz sold approximately 12,000 luxury Maybachs in the country in 2019.

 

India - India is also one of the growing markets in Asia-Pacific. The market, however, saw its lowest figure due to COVID-19. For example, the data for new vehicle registrations in July 2020 revealed that the overall share of luxury car players in the total passenger vehicle market contracted to 0.50 percent in the month, compared to 1.11 percent in the same month last year, according to the Federation of Automobile Dealers Associations (FADA). The ten luxury carmakers in India reported a 59 percent drop in demand in July 2020.

Mercedes-Benz and BMW dominated the Indian luxury sedan market. Mercedes sold 2,386 units in the first three months of 2020, followed by BMW India, which sold 2,365 units.

 

North America – The North American Luxury car market is estimated to grow at CAGR of 6% during the forecasted period. The growing production of electric vehicles, by many established players and new startups such as Rivian, Tesla, and Lucid Motors, is likely to fuel demand for the automotive luxury car market in North America.

 

Major automakers have plans to launch a variety of electric vehicle models. For example, in 2019, Ford unveiled its iconic Mustang Mach-E electric SUV and announced plans to invest approximately $11.5 billion in the technology between 2020 and 2022. The company intends to build a number of EVs and plug-in hybrids, including an electric version of the next-generation F-150 pickup.

 

Middle East - The Middle East's luxury market growth is attributed to the region's wealth in oil, gas, and other materials, which allows the upper class to purchase luxury cars and other commodities. Moreover, in many Middle Easter countries the lower tax on the vehicles offer attractive price for buyers, leading to more demand for such vehicles.

 

The Luxury Car Market report's goal is to provide industry stakeholders with a comprehensive analysis of the Luxury Car market. The Luxury Car Market report identifies the dominant trends in the Luxury Car market and how these trends will influence new business investments and market development over the forecast period. The report also assists in understanding the Luxury Car Market dynamics and competitive structure by analysing market leaders, market followers, and regional players.

 

The quantitative and qualitative data which is provided in the Luxury Car market report are intended to assist in understanding which market segments, regions, and factors affecting the market, as well as key opportunity areas, which will drive the industry and market growth over the forecast period (2024-2030). The report also includes a competitive landscape of the industry's key players, as well as their most recent developments in the Luxury Car market. The Luxury Car Market report investigates the key players in the Luxury Car market in terms of company size, market share, market growth, revenue, production volume, and profits.

 

 

The Luxury Car Market report includes Porter's Five Force Model, which aids in the development of market business strategies. The report assists in determining the number of competitors, who they are, and how their product quality is in the Luxury Car market. The report also examines whether it is easy for a new player to gain a foothold in the Luxury Car market, whether they enter or exit the market on a regular basis, whether the market is dominated by a few players, and so on.

 

The Luxury Car Market report also includes a PESTEL Analysis to help companies develop their strategies. Political factors influence how much a government can influence the Luxury Car market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Luxury Car market is aided by legal factors.

 

Luxury Car Market Scope:

Luxury Car Market
Market Size in 2023	USD 502.63 Bn.
Market Size in 2030	USD 930.70 Bn.
CAGR (2024-2030)	9.2%
Historic Data	2018-2022
Base Year	2022
Forecast Period	2024-2030
Segment Scope	By Vehicle Type Sedan SUVs Others
	by Fuel Type IC Engine Electric
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Luxury Car Market Key Players

• Ford Motor Company (US)
• General Motors (US)
• AUDI AG (Germany)
• Kia Motors Corporation (South Korea)
• Groupe Renault (France)
• Groupe PSA (France)
• SAIC Motor Corporation Limited (China)
• Tesla (US)
• Daimler AG (Germany)
• BMW AG (Germany)
• Hyundai Motor Company (South Korea)
• BYD Company Ltd. (China)
• Continental AG (Germany)
• TOYOTA MOTOR CORPORATION (Japan)
• Nissan Motor Co., LTD. (Japan)
• Volkswagen AG (Germany)
• AB Volvo (Sweden)
• Honda Motor Co., Ltd. (Japan)