What you need to know

The luxury car market is more than a niche segment of the auto industry: 2014 sales are expected to top 2.5 million units and account for 15.5% of all vehicles sold. Luxury vehicle sales are growing faster than the overall market and this segment represents significant growth opportunities. Luxury buyers are particular in their tastes and opinions. They desire specific features and want a car buying experience that is catered to these needs.

Readers of this report will gain an in-depth understanding of the luxury vehicle market and the consumers it serves. Topics include:

  • Sales, market share, and marketing activity of the leading automakers.

  • The luxury car consumer: who expects to purchase a new car and when. What types of features and services is the luxury car intender looking for when making a purchasing decision?

  • How are consumers reacting to the newest technology, entertainment, and safety features? What brands are innovating in these categories and how are they doing it?

This report builds on the analysis presented in Mintel’s Luxury Cars – US, November 2013, as well as New Cars – US, September 2014.

Definition

For the purposes of this report, Mintel has used the following definitions:

This report covers the sale of new domestic and imported luxury vehicles, and consumer attitudes and activity around luxury vehicles. Vehicle segments represent those involving both traditional luxury vehicle makers and nontraditional luxury vehicle makers.

Sales figures throughout this report apply to new (not used) luxury cars, and are unit volume figures as reported by the manufacturers.

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Data sources

Sales data

  • Market Size and Forecast: Mintel/Morgan & Company, Inc., West Olive, Mich.; HybridCars.com; automotive manufacturer sales reports

  • Segment Performance: based on Morgan & Company, Inc., West Olive, Mich.

  • Leading Companies: based on Morgan & Company, Inc., West Olive, Mich.

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer consumption of/attitudes and behaviors toward luxury vehicles. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted from April 23-May 6, 2014, among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms

Abbreviations

The following is a list of abbreviations used in this report:

APR Annual Percentage Rate
BLS Bureau of Labor Statistics
CPI Consumer Price Index
CPO Certified Pre-owned
GPS Global Positioning System
HD High-definition
MSRP Manufacturer’s Suggested Retail Price
rsp Retail selling price
: :
: :

Terms

Generations are discussed within this report, and they are defined as:

World War II /Swing generation Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 69-81 in 2014.
Baby Boomers The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials* The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 20 and 37.
iGeneration The generation born between 1995 and 2007. In 2014, iGens are between the ages of 7 and 19.
Emerging generation The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet-unnamed generation are younger than 7.

*Also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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