|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global luxury car market was valued at around USD 410 billion in 2020. The market is projected to grow to USD 566 billion in 2026, with a CAGR of approximately 5% during the forecast period (2021-2026).
The COVID-19 pandemic had a profound effect on the luxury car market directly in the short term as the sales and production witnessed a decline in 2020. Furthermore, the pandemic has greatly affected the spending power of every individual. After the restrictions were lifted, the market gradually started gaining its lost momentum.
A significant growth of tangible luxury offerings in vehicles, shifting consumer preferences from sedans to SUVs, and increasing disposable incomes of consumers have been propelling the demand for luxury cars worldwide. However, there are a few factors, such as an increase in import tariffs, which are expected to hinder the growth of the luxury car market. For instance, the US President-elect is expected to increase the import tariffs on German luxury cars. The BMW and other German luxury car manufacturers might have to face a 35% import duty for cars not built in the United States.
Luxury cars provide a high level of comfort and safety features, creating opportunities for the market. Moreover, the growing trend of electric luxury vehicles worldwide is fueling the demand for luxury cars. Major luxury car manufacturers are launching electric variants of their vehicles, due to growing environmental concerns and increasing fuel prices. This is also likely to accelerate the growth of the luxury car market over the forecast period.
Some of the major players in the market are Mercedes-Benz, BMW, Lexus, Audi, Volvo, Land Rover, Jaguar, and Tesla. The other players in the market include Ferrari, Lamborghini, and Porsche, amongst others.
Scope of the Report
Luxury cars are equipped with better performance capabilities, good interiors, all the latest safety, and technology features. The luxury car market is segmented by vehicle type, drive type, and geography. The vehicle type segmentation includes hatchback, sedan, and SUV. Whereas the drive type segmentation includes IC engine and electric. The report provides the market sizes and forecasts for all the major countries in North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The profiles of the major players in the market are also covered along with their market shares. The market size and forecast are provided by value (USD billion).
|Sports Utility Vehicle|
Key Market Trends
IC Engines Expected to Witness Slow Growth Rate
The IC engine segment is currently leading the market. However, it is anticipated that the demand for IC engine vehicles will slow down over the forecast period. At present, major players, such as Mercedes-Benz, BMW, and Audi, cover a significant percentage of share in the drive type market segmentation in the global luxury car market.
With the growing environmental concerns, owing to rising exhaust emissions, governments and environmental associations across the world are tightening emission norms. As a result, the demand for sustainable and environment-friendly transportation, such as EVs, is increasing, with governments offering higher incentives and subsidies to these vehicle owners.
· For instance, China registered the highest number of new EV registrations in 2020.
· However, North America is expected to lead the luxury EV sales, owing to higher disposable incomes and EV infrastructure availability in the region.
· Automakers are launching EVs even in developing markets. For instance, in August 2020, Mercedes-Benz announced the start of sales of its first electric vehicle EQC 400, in Brazil, at its dealer network.
The growing demand for and focus on style, power, and advanced telematics, are expected to continue to propel the demand for luxury EVs.
· Additionally, luxury car component manufacturers are focusing on the development of next-generation smart mobility technologies, such as autonomous driving, personal voice assistance, and retina recognition, which are also expected to boost the sales of luxury EVs over the forecast period.
To understand key trends, Download Sample Report
Asia-Pacific is Expected to Lead the Market
Currently, China has the highest growth potential among all the developing countries in the luxury car market. Premium carmakers, such as Audi, Mercedes-Benz, BMW, Lexus, and Volvo, have always maintained positive growth in the Chinese luxury car market. According to the China Automobile Dealers Association, the country's luxury car dealers sold 277,000 vehicles in April 2020, an 11.1% increase over April 2019. Luxury car sales accounted for 18.7% of the market in April 2020, representing a 3.6% rise over April 2019 and a 0.4% increase over the market share in March.
During the peak of the pandemic, when major European carmakers faced interruption in the supply chain, it created an opportunity for the local companies to introduce their luxury models. For instance, the 2020 Hongqi H9 was by Rolls-Royce ex-designer Giles Taylor and other stylist Dinh Yanfeng. In China, Hongqi cars are only available for high-ranking government officials. China is also one the biggest markets for Mercedes-Maybach. In 2019, Mercedes-Benz sold around 12,000 luxury Maybachs in the country.
India is also one of the growing markets in Asia-Pacific. However, owing to COVID-19, the market witnessed its lowest figure. For instance, according to the Federation of Automobile Dealers Associations (FADA), the data for new vehicle registration in July 2020 revealed that the overall share of luxury car players in the total passenger vehicle market contracted to 0.50% in the month, compared to 1.11% for the same month last year. July 2020 sales figures of the ten luxury carmakers in India showed that demand dropped by 59%.
Mercedes and BMW dominated the luxury sedan segment of the Indian market. As of in the first three months of 2020, Mercedes sold 2,386 units, followed by BMW India who sold 2,365 units. After a decline in the second quarter due to pandemic, the market gradully started gaining momentum in the last quarter. Moreover, in 2020, Mercedes-Benz India sold over 7,893 new cars during the January-December period.
To understand geography trends, Download Sample Report
Some of the key players of the luxury car market are Mercedes-Benz, BMW, Volkswagen Group, and Tesla. The market is highly driven by factors like advanced technology, more comfort, growing investment in EV technology, and growing living standards of people around the world. To provide a more luxurious experience to the people, major luxury car manufacturers are investing in other luxury car companies to gain more market share. For instance, in 2020, Mercedes Benz increased its stake in Aston Martin from 5% to 20%. Aston Martin, as its long-term strategy, is planning to increase its revenue to GBP 2 billion and to attain earnings of about GBP 500 million in the next five-year period.
- In January 2021, Mercedes-Benz India announced that it has planned to introduce 15 products in the Indian market. A-Class Limousine, new GLA, AMG GT Black Series are some of the vehicle models that are lined up for a 2021 debut.
- In January 2021, Hongqi launched its three models H9, H5, and HS5 in Kuwait. The company will sell its vehicles in cooperation with Kuwait dealer Al Khalid Auto.
- In January 2021, Bentley introduced its hybrid model following the launches of the new Bentayga V8 and Bentayga Speed. The new Bentayga Hybrid is the company's third model in the luxury SUV portfolio.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Driver
4.2 Market Restraint
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.3 Sports Utility Vehicle
5.2 Drive Type
5.2.1 IC Engine
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Daimler AG (Mercedes-Benz)
6.2.2 Bayerische Motoren Werke AG (BMW)
6.2.3 Volvo Group
6.2.4 Volkswagen Group
6.2.5 Tata Motors Limited
6.2.6 Fiat Chrysler Automobiles
6.2.7 Ford Motor Company
6.2.8 Toyota Motor Corporation
6.2.9 FAW Car Company
6.2.10 Hyundai Motor Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Luxury Car Market market is studied from 2018 - 2026.
What is the growth rate of Luxury Car Market?
The Luxury Car Market is growing at a CAGR of >5% over the next 5 years.
What is Luxury Car Market size in 2018?
The Luxury Car Market is valued at 410 Billion USD in 2018.
What is Luxury Car Market size in 2026?
The Luxury Car Market is valued at 566 Billion USD in 2026.
Which region has highest growth rate in Luxury Car Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Luxury Car Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Luxury Car Market?
Daimler AG, Bayerische Motoren Werke AG (BMW), Jaguar Land Rover Automotive PLC, Tesla, Inc., Volkswagen Group are the major companies operating in Luxury Car Market.