Global Luxury Car Market

Global Luxury Car Market Size, Share, Growth Analysis, By Fuel Type(Petrol and electric), By Vehicle Type(Hatchback, sedan) - Industry Forecast 2024-2031


Report ID: SQMIG25C2071 | Region: Global | Published Date: February, 2024
Pages: 242 | Tables: 61 | Figures: 77

Global Luxury Car Market Dynamics

Luxury Car Market Drivers

Increasing Use of Electric Luxury Vehicles

  • With growing concern for the environment and environmental protection, governments around the world are tightening vehicle emission requirements. As a result, there is an increasing need for ecologically friendly and sustainable transportation, such as electric vehicles. Different governments are also providing bigger subsidies and incentives to these car buyers. For example, the United Kingdom government is offering a USD 7600 tax credit for each electric vehicle. Also, as disposable income and net worth of individuals increase, end-user preference for luxury products is gradually increasing.

Increasing Pre-Owned Luxury Car Demand

  • According to car dealers, the demand for pre-owned luxury vehicles is constantly increasing because owners usually sell these vehicles after one or two years of ownership in order to upgrade to better models and modifications. To satisfy rising demand, the used luxury vehicle market is becoming more organized, with easier access to finance, reduced entry pricing, and annual maintenance contracts. For instance, Maruti Suzuki's True Value in India does a technical check and offers a two-year warranty along with other advantages. Due to the strong degree of customer confidence, this will also lead to an increase in pre-owned luxury car sales. All of these factors would contribute to the widespread adoption of luxury vehicles.

Luxury Car Market Restraints

High Product Cost

  • Luxury vehicles are significantly more expensive than normal vehicles due to their luxurious and modern features, such as high-quality parts and pricey materials. Furthermore, the cost of producing cars with deluxe amenities and options is higher than the cost of producing cars with universal features. Furthermore, because luxury car sales are very limited, a big portion of the selling price is utilized to pay for development, making these sorts of cars more expensive. As a result, the high cost of luxury vehicles is expected to hamper the market growth.
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FAQs

Luxury Car Market size was valued at around USD 536.25 billion in 2019 and is expected to reach a value of USD 992.95 billion by 2031, at a CAGR of 9.2% over the forecast period (2024-2031).

The global luxury car market is fragmented and highly competitive. Numerous global and local companies play a significant role in the market growth. Key industry players are focused on product developments, new product launches, and geographical expansions to gain a significant amount of market share. 'Ford Motor Company (US)', 'Jaguar Land Rover Automotive PLC(U.K.)', 'Volkswagen Group (Germany) ', 'Tesla Inc. (US)', 'Mercedes-Benz Group AG (Germany)', 'General Motors (US)', 'AUDI AG (Germany)', 'Kia Motors Corporation (South Korea)', 'Groupe Renault (France)', 'Groupe PSA (France)', 'SAIC Motor Corporation Limited (China)', 'Tesla (US)', 'Daimler AG (Germany)', 'BMW AG (Germany)', 'Hyundai Motor Company (South Korea)', 'BYD Company Ltd. (China)', 'Continental AG (Germany)', 'TOYOTA MOTOR CORPORATION (Japan)', 'Nissan Motor Co., LTD. (Japan)', 'Volkswagen AG (Germany)', 'AB Volvo (Sweden)', 'Honda Motor Co., Ltd. (Japan)'

With growing concern for the environment and environmental protection, governments around the world are tightening vehicle emission requirements. As a result, there is an increasing need for ecologically friendly and sustainable transportation, such as electric vehicles. Different governments are also providing bigger subsidies and incentives to these car buyers. For example, the United Kingdom government is offering a USD 7600 tax credit for each electric vehicle. Also, as disposable income and net worth of individuals increase, end-user preference for luxury products is gradually increasing.

Consumer inclination toward luxury car companies is increasing as true luxury offerings in vehicles expand and personal disposable incomes increase. This is one of the primary drivers of market expansion. In addition, as environmental concerns develop many countries' regulatory bodies and environmental organizations are tightening emission standards. As a result, there is a global increase in demand for sustainable and eco-friendly transportation such as electric luxury vehicles. The market is also driven by the growing adoption of pre-owned luxury cars due to easy financing, cheap entry prices, and annual maintenance contracts. Leading manufacturers are developing next-generation smart mobility technologies such as personal voice assistance, autonomous driving, and retina recognition. They have also invested heavily in research and development (R&D) activities to integrate artificial intelligence (AI) and machine learning (ML) technologies, creating a favorable impact on the market.

In 2020, North America dominated the market and accounted for about 35.0% of total revenue. The increased consumption in the United States can be attributed to the market's growth. The regional market is growing due to the strong presence of important market participants, increased disposable income, and significant spending on passenger cars. Key players have a wide supply and distribution channel in the region, which adds to the higher consumption of luxury cars. The region's significant players include Tesla, General Motors, and Ford Motors.

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Global Luxury Car Market

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