Luxury Car Market Research Report

Global Luxury Car Market:

The global luxury car market size reached US$ 449.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 657.8 Billion by 2032, exhibiting a growth rate (CAGR) of 4.1% during 2024-2032. The growing demand for opulence and comfort in vehicles, advancements in automotive technology, including safety, connectivity, entertainment, and performance, and rising awareness among the masses about sustainability are among the key factors driving the market growth.

Luxury Car Market Analysis

• Major Market Drivers: The increasing disposable income of individuals in emerging markets and the rising consumer aspirations for luxury and comfort are primarily driving the growth of the market. Moreover, the expansion of the middle and upper-class demographics across the globe is also propelling market growth. 
• Key Market Trends: Technological advancements, including innovations in electric and autonomous vehicles, are reshaping the landscape, attracting tech-savvy consumers seeking cutting-edge automotive experiences. Additionally, the rising integration of connectivity features such as IoT capabilities, AI-driven interfaces, and autonomous driving technologies is also creating a positive outlook for the overall market.
• Geographical Landscape: According to the report, Asia Pacific accounted for the largest market share. This can be attributed to the economic growth in countries, such as China and India. In recent years, the number of high-net-worth Individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) has grown significantly in China and India. As a result, many leading luxury car manufacturers are launching their variants in Asia Pacific countries.
• Competitive Landscape: Some of the leading luxury car market companies operating in the global market are AB Volvo, Aston Martin Lagonda Global Holding Plc, BMW AG, Daimler AG, Ferrari N.V., Nissan Motor Company Ltd., Tesla Inc, Toyota Motor Corporation, and Volkswagen AG, among many others.
• Challenges and Opportunities: While the market faces challenges, such as stricter emission regulations and economic fluctuations, it also encounters opportunities in catering to the demand for sustainable luxury and expanding into untapped markets.
   

Luxury Car Market Trends:

Rising Disposable Income

As disposable incomes are rising, individuals are seeking not just transportation but a symbol of status and prestige. Luxury cars offer an unparalleled level of craftsmanship, comfort, and performance that appeals to discerning buyers. Luxury car market unit sales are expected to reach 197.9k vehicles in 2028. In line with this, the increasing spending power of consumers is significantly impacting the market growth. For instance, in February 2024, the disposable personal income in the United States increased by 0.2% from the previous month. Similarly, in 2023, disposable income in private German households increased by around six percent compared to the year before. Consequently, the desire for exclusive features, plush interiors, cutting-edge technology, and top-tier safety standards are catalyzing the luxury car market demand.

Increasing Product Offerings

Various key market players are introducing electric and hybrid models with connectivity features, such as IoT capabilities, AI-driven interfaces, and autonomous driving technologies, to elevate the driving experience of the consumers. Moreover, they are making significant investments in developing luxury cars with zero-emission capabilities. For instance, in November 2023, India’s largest luxury auto brand, Mercedes-Benz, launched the GLE LWB SUV and AMG C43 4MATIC sedan. The company launched the face-lifted version of the GLE SUV in India at a starting price of INR 96.40 lakh (ex-showroom) across three variants. The SUV made its debut alongside the C43 AMG 4Matic sedan, with a price tag of INR 98 lakh (US$ 117937.12). Similarly, in August 2023, Audi launched its new electric duo, the Q8 e-tron and e-tron Sportback in India. The Q8 e-tron range is available in two trims with 95kWh and 114kWh battery packs, respectively. In the same year, Lotus unveiled Emeya, the company’s first four-door hyper-GT, in New York City. The increasing introduction of technologically advanced vehicles is anticipated to positively impact the luxury car market outlook.

Environmental Consciousness and Sustainability

Environmental concerns and a growing awareness of sustainability are positively influencing the market. Luxury car manufacturers are responding to the demand for eco-friendly options, leading to the development of electric and hybrid luxury models. Various leading manufacturers are launching hybrid and electric vehicles to cater to environment conscious customers, which is propelling the luxury car market revenue. For instance, Alfa Romeo confirmed the gas-powered Giulia will be revamped in the coming years, dropping its Ferrari-derived V-6 in favor of an electric powertrain for 2025. The base version will make around 350 horsepower, while the Veloce will produce closer to 800 horsepower. Additionally, Hyundai Motor Co. is expected to release hybrid cars under its premium brand Genesis in 2025 to attract drivers hesitant to switch to all-electric vehicles. Similarly, Bentley is targeting a range of at least 373 miles and advanced driver assistance technology. While a series of EVs were set to be launched each year from 2025 to 2030, the plan to go fully EV is now set for roughly 2033.

Global Luxury Car Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with luxury car market forecast at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on vehicle type, fuel type, and price range.

Breakup by Vehicle Type:

• Hatchback
• Sedan
• Sports Utility Vehicle
   

Sedan accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes hatchback, sedan, and sports utility vehicle. According to the report, sedan represented the largest segment.

Sedans are renowned for their timeless elegance, superior comfort, and exceptional driving experience. Luxury sedans often feature spacious and well-appointed interiors with premium materials, advanced infotainment systems, and cutting-edge safety technologies. They appeal to buyers who prioritize a smooth and refined ride, along with the prestige associated with classic luxury brands. In response to this, various key manufacturers are increasingly investing in the development of sedans integrated with next-generation technologies, which is bolstering the luxury car market share. For instance, in January 2023, BMW launched its i7 sedan in India. Based on the flagship 7-Series, the i7 would go up against Mercedes Benz’s EQS, which was introduced in 2022. While Mercedes Benz localized the assembly of its EQS sedan, BMW introduced the i7 as a fully built-up unit (FBU).

Breakup by Fuel Type:

• Gasoline
• Diesel
• Electric
   

Gasoline holds the largest share in the industry

A detailed breakup and analysis of the market based on the fuel type have also been provided in the report. This includes gasoline, diesel, and electric. According to the report, gasoline accounted for the largest market share.

Gasoline-powered luxury cars are known for their powerful and refined internal combustion engines, offering a blend of performance and sophistication. Luxury automakers have consistently produced a wide range of gasoline-powered models, ranging from compact sports cars to full-size sedans and SUVs. Moreover, luxury car market statistics indicate that the established consumer base and increasing R&D activities in this segment are creating a positive outlook for the market. For instance, Tata Motors is developing a new petrol powertrain for its premium SUVs, the Harrier and Safari. The new petrol engine, a 1.5-litre GDI engine, is still under development and will be featured in future models of the Harrier and Safari. Moreover, Tata Motors is also working on launching Tata Curvv Petrol soon. Investments in the development of gasoline-based cars will continue to dominate the market.

Breakup by Price Range:

• Entry-Level
• Mid-Level
• High-End
• Ultra
   

The report has provided a detailed breakup and analysis of the market based on the price range. This includes entry-level, mid-level, high-end, and ultra.

Entry-level luxury cars represent the most affordable segment within the luxury car market. These vehicles offer a taste of luxury with a lower price point compared to their higher-tier counterparts. Mid-level luxury cars strike a balance between affordability and premium features. These vehicles cater to buyers who desire a higher level of luxury, advanced technology, and performance, but are mindful of budget constraints. High-end luxury cars are designed to deliver a heightened level of opulence and performance. These vehicles have top-tier craftsmanship, advanced technology, and exceptional comfort. The ultra-luxury segment represents the epitome of automotive extravagance. These cars are crafted with painstaking attention to detail, featuring bespoke materials, handcrafted interiors, and the most advanced technology available.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest luxury car market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

As per the luxury car market report, rapid economic growth in countries, such as China and India, is primarily augmenting the region’s growth. In recent years, the number of high-net-worth Individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) has grown significantly in China and India. As a result, many leading luxury car manufacturers are launching their variants in Asia Pacific countries. For instance, in August 2023, Audi launched its new electric duo, the Q8 e-tron and e-tron Sportback in India. The Q8 e-tron range is available in two trims with 95kWh and 114kWh battery packs, respectively. Similarly, in November 2023, Nio revealed the launch of a major product on Nio Day in December. It was a CNY 1 million (US$ 140 thousand) luxurious electric sedan to compete with the Maybach S class in China. The affluence in the region, coupled with investments in the development of luxury and high-status vehicles are anticipated to bolster the luxury car market recent price in the coming years. 

Leading Key Players in the Luxury Car Industry:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AB Volvo
• Aston Martin Lagonda Global Holding Plc
• BMW AG
• Daimler AG
• Ferrari N.V.
• Nissan Motor Company Ltd.
• Tesla Inc
• Toyota Motor Corporation
• Volkswagen AG
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Luxury Car Market Recent Developments

• February 2024: Hyundai Motor Co. is expected to release hybrid cars under its premium brand Genesis next year to attract drivers hesitant to switch to all-electric vehicles. It is said to be launching the first Genesis hybrid variant next year with a 2.5-liter engine, bigger than the 1.6-liter engine installed in Kia's Carnival van hybrid.
• January 2024: Rolls-Royce is likely to go all-electric in India by 2030. The company launched its first electric luxury sedan, the Spectre, in India in January 2024. Spectre's price range starts from Rs 7.5 crore (ex-showroom), making it the priciest electric car in the market.
• August 2023: Audi launched its new electric duo, the Q8 e-tron and e-tron Sportback, in India on 18 August 2023. The Q8 e-tron range is available in two trims with 95kWh and 114kWh battery packs, respectively.

Luxury Car Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the luxury car market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global luxury car market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the luxury car industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.