Luxury Car Market Size - By Vehicle Type (Hatchback, Sedan, Sport Utility Vehicle), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Franchised Dealer, Independent Dealer), Car Price & Forecast, 2023 - 2032

Luxury Car Industry Analysis

Luxury Car Market was worth USD 14.3 billion in 2022 and is anticipated to grow at 10% CAGR from 2023 to 2032 driven by the rising number of ultra-high-net-worth individuals and increasing disposable incomes.

Contemporary lifestyles and the use of cutting-edge technologies are bringing social changes in the market. The global market for luxury cars has been growing rapidly due to factors such as the rise of luxury products in automobiles, shifting consumer preference from sedans to SUVs, and rising consumer disposable incomes. Currently, the increasing import taxes may limit the luxury car industry expansion.

The global shortage of semiconductor chips is hampering the automotive sector production, in turn, affecting the luxury car market growth. Owing to the slowdown in car production, suppliers such as Toyota have been particularly affected. The shortage of semiconductors is expected to continue globally, thus new car buyers are urged to queue up and place their orders early to avoid delays.

COVID-19 Impact

The COVID-19 pandemic impacted businesses and industries worldwide. Federal authorities imposed lockdowns and containment measures due to the coronavirus outbreak, which forced people around the world to stay inside their homes. The automotive industry experienced raw material & component shortages, which halted vehicle production in all major markets. The spread of COVID-19 decreased customer traffic in showrooms, which had an impact on the sale of luxury vehicles. Due to the government-imposed country-wide lockdowns, several automakers were compelled to temporarily halt production, hampering industry growth.

Luxury Car Industry Trends

Consumer preferences are shifting toward luxury car brands owing to a significant increase in tangible luxury offerings in automobiles and rising disposable incomes. This is one of the main factors driving luxury car market development. Governments and environmental organizations in many countries are tightening emission standards in response to growing environmental concerns. As a result, there is an increase in the global demand for environmental-friendly and sustainable transportation such as electric luxury vehicles.

The market is also fueled by the increasing adoption of used luxury vehicles due to easier access to financing, lower entry costs, and annual maintenance agreements. Also, leading manufacturers are incorporating the newest smart mobility technologies including retina recognition, autonomous driving, and personal voice assistance, thereby boosting business growth.

Luxury Car Market Analysis

The sports utility vehicle segment held 32% of the luxury car market share in 2022 and is expected to grow at a lucrative pace by 2032. The increasing consumer disposable incomes, new model launches, and the accessibility of loans are augmenting market growth. Additionally, manufacturers of luxury auto parts are focused on creating the next generation of intelligent mobility technologies, such as autonomous driving, personal voice assistance, and retina recognition, which are predicted to increase the sale of luxury sports utility vehicles by 2032.

The hybrid/electric fuel sector exceeded USD 2 billion in 2022. Growing environmental concerns brought on by the rising exhaust emissions are encouraging governments to introduce stringent environmental regulations. Governments are also providing higher incentives & subsidies to EV owners, fueling the demand for environmental-friendly and sustainable transportation. With the development of electric vehicle technology, hybrid electric powertrains are being added to vehicles with internal combustion engines to increase fuel efficiency.
 

Such elements are said to present growth prospects for luxury car market progression. Market vendors are focused on creating internal combustion engines with high-speed & high-performance characteristics to achieve the highest level of customer satisfaction and reduce their negative environmental impacts.
 

The USD 60K - 90K luxury car industry captured share of 28% in 2022 and is poised to observe 10% growth till 2032. The demand for luxury cars is anticipated to increase globally with luxury car manufacturers introducing multiple models, ranging between USD 60K and USD 90K and the availability of convenient financing options. As they provide more space and comfort, the demand for luxury SUVs has been increasing quickly and is predicted to continue to surge during the forecast period.. Luxury SUVs are expected to witness significant growth in luxury car market as consumer preferences shift away from luxury sedans and hatchbacks. International manufacturers, such as BMW, Mercedes-Benz, Volvo, and Audi, release new models each year to meet the rapidly increasing demand for luxury cars.
 

Asia Pacific is the dominant region in the luxury car industry scenario with over 65% share in 2022. The regional market development is attributed to the presence of numerous large-scale businesses. The ever-increasing population in countries including China and India is benefiting the luxury car manufacturers in the region. The China luxury car sector shows one of the highest growth potentials in the province. The increasing number of production facilities in the region is credited to the low costs and tax benefits associated with the assembly & sale processes provided by many Asia Pacific countries.
 

Luxury Car Market Share

Some of the major players operating in the luxury car industry are :

• Daimler AG
• Bayerische Motoren Werke AG
• Volvo Car Corporation
• Volkswagen AG
• Tata Motors Limited
• Toyota Motor Corporation
• Tesla
• Aston Martin
• Mazda Motor Corporation
• Isuzu Motors Ltd.

These players focus on strategic partnerships and new product/service launches for market expansion. Furthermore, these players are heavily investing in research, allowing them to introduce innovative solutions and garner maximum revenue in the market.
 

Luxury Car Industry News:

• In March 2022, Audi announced plans to expand in the Indian market by introducing more brands and extending its network throughout the country. The company offers two battery options for electric SUVs, 52 kWh and 77 kWh, internationally. Audi’s Q4 e-Tron is available in both SUV and coupe-SUV body types.
   
• In January 2022, Mercedes-Benz introduced Mercedes-Benz EQS, its top-of-the-line luxury sedan, as the first luxury electric car in India. The car is locally produced in India, making it the country's first luxury electric vehicle.
   

This luxury car market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipments (Units) from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

• Hatchback
• Sedan
• Sports utility vehicle

Market, By Fuel Type

• Gasoline
• Diesel
• Hybrid/Electric

Market, By Sales Channel

• Franchised dealer
• Independent dealer

Market, By Car Price

• USD 30K - 50K
• USD 50K - 80K
• Above USD 80K

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa