| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 7.96 Billion |
| Market Size (2030) | USD 10.55 Billion |
| CAGR (2025 - 2030) | 5.80 % |
| Market Concentration | Medium |
Major Players.webp "Europe Luxury Car Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
European Luxury Cars Market Analysis
The Europe Luxury Car Market size is estimated at USD 7.96 billion in 2025, and is expected to reach USD 10.55 billion by 2030, at a CAGR of 5.80% during the forecast period (2025-2030).
Several key factors, including economic stability and rising disposable incomes, have fueled robust growth in the European luxury car market. European consumers are increasingly gravitating towards luxury vehicles that not only signify status and prestige but also boast the latest in automotive technology and safety features.
The swift advancement and adoption of electric vehicles (EVs) stand out as a prominent trend in the European luxury car market. Leading the charge, the luxury segment is seamlessly merging high-performance EVs with state-of-the-art technologies, such as advanced driver-assistance systems (ADAS) and fully autonomous driving capabilities. This momentum is bolstered by the expanding fast-charging infrastructure across Europe, enhancing the feasibility of EVs for consumers. Furthermore, luxury automakers are emphasizing bespoke customization, enabling clients to personalize their vehicles, thereby amplifying the allure of luxury brands.
Models like the Tesla Model S and Audi e-tron exemplify EV powertrains that marry high performance with long-range capabilities, catering to the demand for sustainable yet powerful vehicles. Meanwhile, autonomous driving technologies from industry giants like Mercedes-Benz and BMW are elevating safety and convenience, introducing features such as adaptive cruise control, lane-keeping assist, and self-parking systems.
Moreover, in-car connectivity is reaching new heights, with luxury vehicles now offering integrated infotainment systems, seamless smartphone integration, voice-activated controls, and over-the-air updates, all contributing to a tailored and immersive driving experience.
European Luxury Cars Market Trends
SUVs are anticipated to witness higher growth in the European Luxury Car Market
SUVs are set to steer the European luxury car market, as traditional passenger cars lose their grip. This shift, initially a trend in the US, has now permeated Europe and Asia. Brands like Nissan, Hyundai, Kia, Mazda, and Jaguar, alongside luxury names such as Lexus, Porsche, Maserati, and Volvo, are seeing their best-selling models being SUVs in Europe.
Most European luxury brands are pivoting towards crossover SUVs, leading to a surge in sales. Today, these brands report SUV sales constituting over 75% of their total volume. As consumer preferences shift towards more spacious and luxurious vehicles, the SUV segment is poised for significant growth. Additionally, stringent EU emission norms, targeting the 12% of CO2 emissions attributed to cars, have accelerated SUV production.
Car manufacturers' emission targets hinge on their vehicles' average mass, granting heavier car OEMs leeway with higher emissions. In response to this demand, major European automakers are frequently launching luxury SUVs. For instance,
- In April 2024, Mercedes Benz unveiled the all-electric G-580 luxury SUV, a modern twist on the G-Class legacy. Boasting four motors with a combined output of 432 kW and 1,164 Nm torque, the SUV draws power from a 116 kWh battery, achieving a range of up to 473 km. Its charging capabilities, from 10% to 80% in roughly 32 minutes, are facilitated by an 11-kW on-board AC charger and a 200 kW DC fast-charging system. Priced from USD 155,000 (EUR 142,621.50) and the limited Edition One model at USD 209,000 (EUR 192,524.15), the G-580 is equipped with MBUX infotainment, off-road driving functions, and a suite of safety systems.
- In January 2023, Lexus expanded its LX flagship SUV range, introducing F SPORT models, a VIP grade, and seven-seat versions of the diesel-powered LX 500d. The VIP grade elevates luxury with a four-seat arrangement, featuring power-adjustable, heated, and ventilated rear seats.
Given these developments, the appetite for luxury SUVs in Europe's auto sector is set to surge in the coming years.
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The United Kingdom and Germany to Likely to Hold Key Market Share During the Forecast Period
For decades, the German automotive sector has stood as the cornerstone of Europe's automotive landscape. Germany has emerged as a leading nation, both in producing and innovating cutting-edge automotive products. Furthermore, Europe's automotive sector has witnessed a robust 60% growth in R&D, largely driven by Germany. This underscores Germany's pivotal role as an innovation hub, fueling the demand for automotive smart glass.
In the UK, renowned car manufacturers such as Audi, BMW, Nissan, and Range Rover infuse luxury into their flagship models - the Q-series, X-series, Qashqai, and Evoque. The premium car segment is witnessing a surge in sales, with a clear consumer preference leaning towards SUVs.
Major players in the UK's automotive landscape are pivoting towards electrification and sustainability, underscoring a significant industry trend. For instance,
- In April 2023, Jaguar Land Rover (JLR) unveiled a GBP 15 billion investment plan spanning five years. This investment aims to bolster its industrial presence, vehicle offerings, and digital advancements. JLR's Halewood plant is set to transform into an all-electric production hub, with plans to debut an all-electric Range Rover by 2025. Moreover, the Engine Manufacturing Centre in Wolverhampton will shift its focus to electric drive units and battery pack production, highlighting JLR's electric vision.
- In another instance, Lotus Technology, in its inaugural Environmental, Social, and Governance (ESG) report released in October 2023, set an ambitious target for carbon neutrality by 2038. The luxury EV manufacturer is eyeing a fully electric lineup by 2027 and has rolled out a digital system for carbon emissions oversight. Their commitment to sustainability is evident in their green manufacturing initiatives and products, notably the all-electric hyper SUV, Eletre.
Given these developments, the UK's and Germany's automotive prowess suggests a burgeoning demand for luxury vehicles.
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European Luxury Cars Industry Overview
Key players, including BMW Group, Mercedes-Benz Group, Ford Motor, and Volkswagen AG, dominate the European luxury car market. Factors such as advanced technology, enhanced comfort, increased R&D investments, and the rising prominence of electric and autonomous vehicles drive this market.
Major players in the European luxury car market are ramping up their electric and hybrid technology efforts, responding to heightened consumer demand and regulatory pressures. They're not only launching new models and boosting production capabilities but also making significant investments in cutting-edge technologies like advanced battery systems and OLED lighting.
- NIO, in June 2024, unveiled its latest luxury SUV, the EL8, across several European nations, including Sweden, Denmark, and Germany. The EL8, priced from USD 94,000 (SEK 999,000), boasts features like a dual motor system and the Banyan smart operating system. Deliveries are set to commence on September 15, 2024, spanning 10 European markets.
- SK On, in April 2024, inked a memorandum of understanding (MoU) with Ferrari, aiming to deepen their collaboration in battery cell technology. This bolstered partnership seeks to elevate their technological edge, building on SK On's battery supply history for Ferrari’s hybrid vehicles since 2019.
- In April 2024, at the INNOPROM exhibition in Uzbekistan, the State Scientific Center of the Russian Federation FSUE "NAMI" showcased the world's first hydrogen luxury car, the NAMI Hydrogen. Based on the AURUS Senat, it boasts a powerful 750 kW (1,020 horsepower) engine, an 870 km range, and a swift acceleration from 0 to 100 km/h in under 4 seconds.
Many manufacturers are pivoting to all-electric lineups, moving away from traditional combustion engines in favor of sustainable alternatives.
- JLR, in May 2024, concluded car production at its Castle Bromwich plant in the UK. This move aligns with JLR's "Reimagine" strategy, aiming to transition Jaguar into a fully electric luxury brand by 2025. Marking the end of an era, OPmobility, a prominent automotive supplier, delivered the last Jaguar XF bumper set to the plant.
Moreover, to bolster competitive edges and enhance vehicle performance and safety, companies are actively pursuing strategic partnerships and ramping up R&D investments.
European Luxury Cars Market Leaders
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BMW AG
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Tesla Inc.
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Mercedes-Benz Group AG
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Audi AG
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Volvo Cars
- *Disclaimer: Major Players sorted in no particular order
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European Luxury Cars Market News
- July 2024: BMW kicked off the production of its fourth-generation BMW 1 Series at its Leipzig plant in Germany. The luxury compact model, rolling off the line at a pace of up to 500 cars daily, is set to hit the market in October 2024. In a related move, BMW's Wacker Dorf plant unveiled a new production line dedicated to instrument panels for the BMW 1 Series, bolstered by a EUR 10 million investment to enhance efficiency.
- May 2024: OLEDWorks revealed that its Atala organic light-emitting diode (OLED) technology has been integrated into the exterior lighting of the revamped Audi Q8 luxury SUV. Marking a first, the upgraded model boasts digital OLEDs flanking both sides of the rear lights, a feature that amplifies road safety through individually addressable high-contrast segments.
- February 2024: Aston Martin is ramping up its UK workforce, bringing on board over 400 technicians. This move is to bolster the production of its new sports cars and the DBX707 luxury SUV. The hiring spree is a response to surging demand for models such as the Vantage and DB12, alongside anticipated launches in 2024.
European Luxury Cars Industry Segmentation
Luxury cars, known for their superior comfort, high-end amenities, and top-notch performance, often come with a prestigious status that sets them apart from their moderately priced counterparts. In Europe, the luxury car market boasts high-end models renowned for their unparalleled comfort and reliability, crafted from the finest materials. Dominating this elite market are renowned players like Porsche, Ferrari, BMW, and Mercedes-Benz.
The European Luxury Car Market is segmented by Vehicle Type (Hatchback, Sedan, Sport Utility Vehicles, and Multi-Purpose Vehicles), Drive Type (IC Engine and Electric), and Country (Germany, United Kingdom, France, Spain, Italy, Russia, Netherlands, Denmark, Sweden, Belgium, Switzerland, and Rest of Europe). The report offers market size and forecast for the Europe Luxury Car market in Value (USD) for all the above segments.
| Vehicle Type | Hatchback |
| Sedan | |
| Sport Utility Vehicle | |
| Multi-purpose Vehicle | |
| Drive Type | IC Engine |
| Electric | |
| Country | Germany |
| United Kingdom | |
| France | |
| Spain | |
| Italy | |
| Russia | |
| Netherlands | |
| Denmark | |
| Sweden | |
| Belgium | |
| Switzerland | |
| Rest of Europe |
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Europe Luxury Car Market Research Faqs
How big is the Europe Luxury Car Market?
The Europe Luxury Car Market size is expected to reach USD 7.96 billion in 2025 and grow at a CAGR of 5.80% to reach USD 10.55 billion by 2030.
What is the current Europe Luxury Car Market size?
In 2025, the Europe Luxury Car Market size is expected to reach USD 7.96 billion.
Who are the key players in Europe Luxury Car Market?
BMW AG, Tesla Inc., Mercedes-Benz Group AG, Audi AG and Volvo Cars are the major companies operating in the Europe Luxury Car Market.
What years does this Europe Luxury Car Market cover, and what was the market size in 2024?
In 2024, the Europe Luxury Car Market size was estimated at USD 7.50 billion. The report covers the Europe Luxury Car Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Luxury Car Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Luxury Car Industry Report
Statistics for the 2025 Europe Luxury Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Luxury Car analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
