Luxury Cars Market Forecasts to 2028 – Global Analysis By Vehicle Type (Sedan, Hatchback, Sport Utility Vehicle (SUV), Other Vehicle Types), Propulsion Type (Electric, Internal Combustion Engine (ICE), Other Propulsion Type) and others

Luxury Cars Market Forecasts to 2028 – Global Analysis By Vehicle Type (Sedan, Hatchback, Sport Utility Vehicle (SUV), Other Vehicle Types), Propulsion Type (Electric, Internal Combustion Engine (ICE), Other Propulsion Type) and others

According to Stratistics MRC, the Global Luxury Car Market is accounted for $620.02 billion in 2022 and is expected to reach $1,178.63 billion by 2028 growing at a CAGR of 11.3% during the forecast period. A luxury vehicle has a higher level of interior, comfort, and effectiveness than a standard vehicle. Increased disposable income in the several countries around the world has provided a platform for market participants. The huge investments in luxury cars can be attributed to a variety of factors, the most important of which are comfort and quality. The existence among several large scale luxury car manufacturers will favour market growth in the coming years.

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. According to the Federation of Automobile Dealers Associations (FADA), 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% 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%.

Market Dynamics:

Driver:

Increasing Number of Company Collaborations

There is healthy market competition all over the world due to the rising demand for the product. Because of the fierce market competition, companies have adopted growth strategy which have assisted them maintain a firm hold in the market. The growing number of company cooperation and collaboration will have a significant impact on the overall market's growth in the coming years.

Restraint:

Higher Sales Price

Luxury vehicles are more costly right away. They must weigh the positive aspects, such as increased performance, improved safety, top-tier features, and the luxury car status. Even the components of a luxury car are more incredible than those of a standard car. They use higher-quality parts and materials than entry-level vehicles. They do it for a variety of reasons. It increases the part's reliability, strengthens it to handle the extra power output underneath the hood, and tends to make your car run more smoothly.

Opportunity:

Demand of Heavy and Luxury Vehicles

The rise in demand for heavy and luxury vehicles, combined with an increase in diesel-powered vehicles, accelerates market growth. Additionally, an increase in passenger car sales due to consumer preference for economical vehicles aids in market expansion. And, the development of the automotive industry, surge in investments, and continued to increase disposable income all benefit the luxury car market.

Threat:

Fuel and Repair Expenses

Many luxury vehicles require mid-grade or premium fuel to run smoothly. This is due to the fact that high-performance engines require higher octane fuel. Repairs are more expensive in a luxury car, just as they are more expensive to fuel. Everything, from parts to service, is more expensive. Expect to pay more for repairs and routine maintenance, such as spare keys, new batteries, and tune-ups.

Covid-19 Impact

The previous corona pandemic has had a serious influence on several economies worldwide. The efforts made to stop the infection from spreading have stifled business growth around the world. Because of the disease's rapid spread, a few nations are looking to adopt strict measures to control the disease's spread. The corona pandemic has caused fear among people all over the world, and due to a lack of labour and workers, production units in all major industries have ceased operations. The auto sector is one of the worst-affected industries worldwide. The Covid-19 will have a negative impact on the market because people will become hesitant to spend money on luxury items.

The sport utility vehicle (SUV) segment is expected to be the largest during the forecast period

The sport utility vehicle (SUV) segment is estimated to have a lucrative growth, due to new luxury SUV range that offers better comfort and travelling experience. Luxury SUVs prioritise comfort, ease of access, technology, design, safety, and ride quality. Luxury SUVs are costlier due to their numerous features and attractive appearance. This is because the majority of these vehicles are imported and subject to a high import tax.

The Internal Combustion Engine (ICE) segment is expected to have the highest CAGR during the forecast period

The Internal Combustion Engine (ICE) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the widespread availability of infrastructure such as boosting, maintenance, and so on furthermore; the cars are significantly less expensive than the electric variants. The Electric Vehicle is being held back by a lack of adequate infrastructure. Electric vehicles are also more expensive.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the high prevalence of government support in the form of subsidies for the production of electric vehicles and presence of a number of large-scale automakers in this region. The steadily increasing population in countries has provided opportunities for companies operating in the Asia Pacific luxury car market. The rising number of industrial units in these regions is due to the low costs and tax breaks connected with assembly and sale procedures in multiple countries.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the initiation of advanced technology, as well as an increase in the number of activities in research and development in the region. Increasing disposable income and changing customer preferences have become two of the most significant aspects of the luxury car market's growth. These vehicles provide exceptional comfort, an indulging and silky-smooth ride, exhaustive levels of technology, sufficient performance, excellent drivability, refinement, and, above all, serve as an improved status symbol than most things on four wheels.

Key players in the market

Some of the key players profiled in the Luxury Car Market include Volkswagen AG, Daimler AG, Mercedes-Benz, Toyota Motor Corporation, Jaguar Land Rover Automotive PLC, Ford Motor Company, Hyundai Motor Group, Volvo Car Corporation, Tesla Inc., Tata Motors Limited, Bayerische Motoren Werke AG, BMW AG, Nissan Motor Co.LTD., Kia Motors Corporation, Continental AG, AUDI AG and General Motors.

Key Developments:

In January 2021, Mercedes-Benz India announced its plans to introduce 15 products in the Indian market. A-Class Limousine, new GLA, and AMG GT Black Series were some of the vehicle models lined up for a 2021 debut.

In August 2020, Mercedes-Benz and CATL announced that they have formed a strategic partnership; a step that is consequential to the former’s efforts to introduce electric vehicles. This partnership is aimed at the development of a cutting-edge battery technology for use in Mercedes-Benz’s upcoming electric cars.

Vehicle Types Covered:
• Sedan
• Hatchback
• Sport Utility Vehicle (SUV)
• Other Vehicle Types

Propulsion Type Covered:
• Electric
• Internal Combustion Engine (ICE)
• Other Propulsion Type

Price Ranges Covered:
• Above Rs. 80 Lakhs
• Rs. 20-50 lakhs
• Rs. 50-80 Lakhs
• Other Price Ranges

Fuel Types Covered:
• Diesel
• Gasoline
• Electric
• Other Fuel Types

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements