Luxury Vehicles Market Size, Share, Growth Analysis, By Propulsion Type(Internal Combustion Engine (ICE), and Electric), By Vehicle Type(Hatchback, Sedan), By Fuel Type(Petrol and Electric) - Industry Forecast 2024-2031

Global Luxury Vehicles Market size was valued at USD 461.24 Billion in 2022 and is poised to grow from USD 483.84 Billion in 2023 to USD 709.42 Billion by 2031, growing at a CAGR of 4.9% in the forecast period (2024-2031).

Luxury cars are popular with buyers simply because of their entertainment system, built-in swing seats and safety features. Luxury cars are known for their luxurious features and finishes. Luxury items are seen as less exclusive, unique and special to enhance life. As a result, these companies are competing more than ever to establish strong brands. With the rise of manufacturers, the public’s perception of automotive models plays an important role in their purchasing decisions. Some luxury brands like BMW, Mercedes-Benz and Lexus must change their values and attitudes in line with changing societal norms that affect consumer sentiment.

One of the major factors driving the growing market is the tightening of vehicle emission norms across the globe due to increased government attention on environmental protection and consequently that, there is a growing demand for environmentally friendly and sustainable transport such as electric vehicles. In addition, governments of various states offer many subsidies and incentives to these car owners. Also, with the rise in disposable income and personal wealth, consumer preference shifts towards luxury goods. The market is expanding due to technological advances such as the Internet of Things (IoT) and real-time reporting solutions in all EV charging station systems.

Luxury cars are almost obligatory status symbols for high-net-worth individuals, as these are more expensive than other cars. In addition, the developing world is witnessing a remarkable increase in luxury car sales. Moreover, the demand for luxury vehicles is increasing due to rising incomes and changing consumer needs. In addition, improvements in the economy saw many luxury car manufacturers see an increase in sales. For instance, Audi India delivered 4,187 units by 2022, a growth of 27% in year-on-year sales. Moreover, global sales of luxury car manufacturer, Porsche is 309,884 units in 2022, up 3% from sales in 2021. Furthermore, luxury car sales growth is much faster than the overall market so this increase in demand for luxury automotive in developing countries is expected to boost market growth.