A Study of the Global Luxury Car Market 2017
- June 2017 •
- 55 pages •
- Report ID: 3543424
The global luxury car market has seen been relatively untouched by the financial crisis and has been posting growth driven by the emerging markets. The three German players BMW, Audi and Mercedes-Benz account for approximately 80% share of the global luxury car market. BMW is the global leader in the luxury car segment, followed by Mercedes-Benz and Audi. World over while mass automobile manufacturers are struggling with margins, high end manufacturers are enjoying steadily increasing sales.
In the United States luxury car market, over the past few years, it is the crossovers and SUVs, which have been experiencing growth in sales. In 2016, the two leading players in the market, Mercedes-Benz and Lexus did not see any of its non-SUV models experience growth in sales. The luxury car market in the US is now diverging into two clear categories, the budget cars and the ultra luxury cars. There is clustering of new purchases in the two extreme categories of budget and ultra luxury.
Demand for luxury cars in Europe had been at a low for nearly two decades and started recovering gradually from 2014. Even though challenging economic conditions still prevail in many European markets, players such as BMW have been able to maintain volumes of their higher end models. In Europe, there is greater demand for high-end models as compared to the emerging markets such as China where the entry-level luxury markets are seeing greater growth. New players in the market such as Hyundai have big plans for Europe even though traditionally the foreign players have not been able to match the big 3 German brands which account for approximately 4 out of 5 luxury cars in the market.
In 2017, the luxury car segment in China is seeing strong growth. The millionaires in China increased by 10% in 2016 year-on-year. Despite the government’s austerity drive, sales of super-luxury and supercar sales have not slowed down in China. Mercedes-Benz witnessed its best ever month in terms of sales in China in March 2017.
India is one of the largest passenger vehicle markets in the world and vehicle manufacturers both in the passenger and luxury segment see a huge potential for sales growth in the country. While the luxury car penetration level in the country is low but leading luxury car manufacturers are betting on the market’s potential. Luxury car penetration in India currently stands at 1.1%. Launch of multiple strategically priced models at various price points coupled with smart financing schemes and a robust dealer network is boosting the sales of luxury cars in India.
In the GCC region, the United Arab Emirates is the second-largest automotive market after Saudi Arabia. U.A.E. is heavily dependent upon imports and almost the entire supply of car as well as light vehicles is imported. The low oil prices and global macroeconomic factors are affecting the luxury goods market in the Middle East. While over the last 10 years the personal luxury goods market witnessed an annual growth of 8-10%, it is projected to drop to approximately 4-5% over the next few years. Even amidst the economic slowdown globally, the sales of luxury cars per capita are still the highest in the Middle East.
Why should the report be purchased?
The report ‘A Study of the Global Luxury Car Market 2017’highlights key dynamics of the global luxury car market. The growing opportunity in the sector has been investigated along with analysis of the five markets of luxury cars: United States, Europe, China India and Middle East. The Initiatives and performance of key global players including Volkswagen AG, Daimler AG, Bayerische Motoren Werke AG (BMW), Tata Motors Limited and General Motors Companyalong with current market scenario has also been studied. The report contains latest industry leaders verbatim.
Research methodology and delivery time
Smart Research Insights has conducted in depth secondary research to arrive at key insights. Data collected from key public industry sources and publications has been scanned and analyzed impartially to present a clear picture of the industry. All recent developments which impact the sector dynamics have been captured and used to support the research hypothesis.
The report is available as single-site single-user license. The delivery time for the electronic version of the report is 2 business days as each copy undergoes thorough quality check and is updated with the most recent information available. The dispatch time for hard copies 3 business days, as each hard copy is custom printed for the client.