Luxury Car Market

Luxury Car Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031

The term luxury refers to automobiles or vehicles that have improved performance capabilities, attractive & esthetic interiors, and are equipped with all of the latest technology & safety systems. Luxury vehicles have been associated with brands such as BMW, Mercedes-Benz and Audi for the last few years. However, luxury variants are now available for major brands like as Honda and Toyota.
A luxury car offers superior levels of equipment, comfort, performance, and quality among several other factors, as compared to regular cars. Several luxury car brands include BMW, Lexus, Cadillac, Audi, Mercedes-Benz, Infiniti, and Lincoln. These brands are differentiated from regular brands due to their reputation, features they offer, their marketing technique, and their price ranges.

Increasing disposable income among developing nations and adoption of advanced technologies are major factors that are estimated to propel the luxury car market during the forecast period
Luxury vehicles offer a high level of comfort and safety features, opening up new prospects for the market. Furthermore, the growing trend of electric luxury vehicles around the world is further driving the luxury cars market. Key players engaged in the manufacture of luxury cars are introducing electric models of their vehicles due to growing environmental concerns and rising fuel prices, which in turn is estimated to fuel the luxury car market during the forecast period.
Luxury car manufacturers are actively focused on the development of next-generation technologies, such as personal voice assistance, autonomous driving, and retina recognition. Implementation of these technologies in luxury cars is anticipated to boost the sales of luxury cars in the next few years.

Upcoming and newer models incorporate a large amount of semiconductor chips. This is one of the major factors that is projected to hinder the luxury car market in the near future. Car manufacturers and suppliers are facing dramatic shortage of semiconductor chips, which is attributed to tremendous increase in demand for laptops, computer, mobile phones, and several other electronic devices.
Lack of suitable infrastructure facilities in developing countries, such as India, also restrains the market. Moreover, the country has higher import duties as compared to other nations, such as Singapore and South Korea, which in turn hinders the market. For instance, import duties in India range from a minimum of 20% to as high as 150%, which significantly discourages global players from entering the luxury car market in India. Consequently, this limits the luxury car market across the globe.

The millennial generation is highly tech savvy and travels all over the world. As a result of being exposed to world events, they are more conscious. The present generation is willing to experiment with and spend money on fashions and brands that previous generations would have avoided. They anticipate newer trends and more exclusive products, as compared to that in the past.
Rise in environmental concerns due to an increase in exhaust emissions around the world is further increasing the stringency of emission standards. Therefore, the demand for eco-friendly and sustainable transportation is rising, with governments providing greater incentives and subsidies to EV owners. These factors are estimated to significantly drive the luxury car market during the forecast period. For instance, in 2020, China had the highest number of new EV registrations. However, North America is likely to lead the global luxury EV sales due to higher disposable income and the availability of EV infrastructure in the region.

The luxury car market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period. The general outlook for luxury vehicles remains encouraging, with Asia Pacific once again leading growth in worldwide sales. China has the largest development potential of any developing country assessed for the luxury car industry. BMW, Volvo, Lexus, Audi, and Mercedes-Benz have always witnessed significant expansion in the China luxury car market. According to the China Automobile Dealers Association, in April 2020, luxury automobile manufacturers in the country sold 277,000 vehicles, an 11.1% increase as compared to that in the previous year.
Sales in Eastern Europe and Russia are also expected to return to normal and witness further rise, which in turn is projected to significantly drive the luxury car market.

Luxury Car Market, by Vehicle Type

Luxury Car Market, by Propulsion Type

Luxury Car Market, by Region

North America
- U.S.
- Canada
Europe
- Germany
- U.K.
- France
- Russia
- Spain
- Sweden
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- ASEAN
- Rest of APAC
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East & Africa
- GCC Countries
- Turkey
- South Africa
- Rest of Middle East & Africa