Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Luxury vehicle sales market size and sales forecast, 2015-25
- Impact of COVID-19 on luxury vehicles
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- Figure 2: Short, medium and long term impact of COVID-19 on nonluxury vehicles, March 2020
- Opportunities and challenges
- Younger consumers are the new target audience for luxury cars
- NFTs can generate longer-term interest and purchase consideration
- The COVID-19 pandemic and recession can negatively affect vehicle affordability
- Luxury brand collaborations can spark interest among consumers
The Market – Key Takeaways
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- Luxury sales to recover in the longer term
- Global chip shortages threaten to balloon vehicle sales, create vehicle shortages
- Luxury OEMs focus on a sustainable, tech-forward future
Market Size and Forecast
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- Luxury sales on pace to recover in longer term
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- Figure 3: Luxury vehicle sales market size and sales forecast, 2015-25
- Figure 4: Total US unit sales and forecast of new luxury vehicles, 2015-25
- Impact of COVID-19 on luxury vehicles
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- Figure 5: Short, medium and long term impact of COVID-19 on nonluxury vehicles, March 2020
- Learnings from the last recession
Market Factors
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- Global chip shortage continues to affect automotive supply chain
- As economic instability persists, COVID-19 incentives and programs could help luxury vehicle market
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- Figure 6: Consumer confidence and unemployment, 2000-January 2021
- Sustainability and technology are leading the evolution of luxury automotive
Market Opportunities
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- Luxury brand collaborations can help reach younger car buyers
- NFTs could be the next big thing for luxury automotive
- COVID-19 increased interest in road trips and presents opportunity for luxury rentals
Companies and Brands – Key Takeaways
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- Tesla continues to be the category’s cutting-edge leader
- Jaguar plans for an all-electric future by 2025
- Cadillac’s long-term tech investments are paying off
- Lexus targets younger consumers through sneaker collaboration
Competitive Strategies
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- Tesla remains a dominant figure in tech-forward luxury
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- Figure 7: Tesla highlights various vehicle technology features
- Jaguar to go all-electric by 2025
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- Figure 8: Jaguar, “Reimagine modern luxury,” February 2021
- Cadillac’s technology investments solidify its spot as a pack leader
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- Figure 9: Cadillac Super Cruise, February 2021
- Lexus seeks to epitomize style with sneaker collaboration
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- Figure 10: Lexus x RTFKT sneaker collar, February 2021
The Consumer – Key Takeaways
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- Luxury vehicle ownership has increased over the years
- First-time female luxury car buyers present opportunity to gain market share
- Consumers doubt if luxury vehicles are worth the cost
Luxury Vehicle Ownership and Consideration
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- Increased discretionary savings led to increase in luxury vehicle ownership
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- Figure 11: Luxury vehicle ownership, by year comparison, January 2021
- Luxury ownership and consideration unexpectedly decreases with age
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- Figure 12: Luxury vehicle ownership, by age, January 2021
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- Figure 13: Lexus IS: Names – All In with Tyler, February 2021
- Current luxury vehicle owners see value in repurchasing another luxury brand
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- Figure 14: Luxury vehicle consideration, by current luxury vehicle ownership, January 2021
- Low use of some alternate transportation creates opportunities with urban consumers
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- Figure 15: Luxury vehicle consideration, by area, January 2021
Luxury Brand Purchase Motivators
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- Self-indulgence at the heart of purchase consideration factors
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- Figure 16: Luxury vehicle purchase motivators, January 2021
- Aspirational and influential prestige attracts young car buyers
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- Figure 17: Luxury vehicle purchase motivators, by age, January 2021
- Empowered luxury can attract young, female first-time buyers
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- Figure 18: Luxury vehicle purchase motivators, by age and gender, January 2021
Purchase Barriers
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- Lack of perceived value threatens luxury car purchases
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- Figure 19: Luxury vehicle purchase barriers, January 2021
- Luxury vehicles don’t fit the lifestyle of would-be “luxury” consumers
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- Figure 20: Luxury vehicle purchase barriers, by net worth, by generations, January 2021
- COVID-19-related concerns threaten luxury consideration
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- Figure 21: Luxury vehicle purchase barriers, January 2021
Luxury Brand Attributes
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- Luxury brands stylish, safe, but lack perception of being a good value
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- Figure 22: Luxury vehicle brand attributes, January 2021
- Younger car buyers are less likely to have high brand perceptions of safety
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- Figure 23: Luxury vehicle brand perceptions of being safe, by age, January 2021
- Tesla overwhelms, overshadows other brand’s innovative tech offerings
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- Figure 24: Luxury vehicle brand perceptions of being cutting edge, by age, January 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Figure 25: Luxury vehicle ownership by brand, January 2021
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