Table of Contents
Executive Summary
-
- The issues
- Brand identity is key
-
- Figure 1: Luxury car brands, May 2015
- Growing loan balances could crimp consumers
- The opportunities
- Comfort is weighing high on consumer minds
-
- Figure 2: Luxury car attitudes, May 2015
- Consumers have money to spend
-
- Figure 3: American average spending on durable goods, January 2015-August 2015
- What it means
The Market – What You Need to Know
-
- Luxury car market is poised for growth, thanks to recovering economy
- Growth in entry-level luxury spurs overall market
- CPO growth helps the overall luxury market
Market Size and Forecast
-
- Luxury car market poised for continued growth
-
- Figure 4: Total US sales and fan chart forecast of luxury cars, at current prices, 2010-20
- Figure 5: Total US sales and forecast of market, at current prices, 2010-20
Market Breakdown
-
- Entry-level luxury segment is strong
-
- Figure 6: Sales of luxury cars, by segment, 2015
Market Perspective
-
- CPO car growth helps luxury market
Market Factors
-
- Foreign economic factors could affect US market
-
- Figure 7: Chinese GDP forecast, 2013-17
- Income growth gives consumers the key to luxury market
-
- Figure 8: American average spending on durable goods, January 2015-August 2015
Key Players – What You Need to Know
-
- Audi, BMW among those with strong consumer interest
- Compact crossovers and entry-level luxury cars help spur brands
- To be luxury, consumers must think luxury
What’s Working?
-
- Going small and (relatively) cheap seems to be the best approach
What’s Struggling?
-
- Brands without luxury cachet are struggling to sell luxury models
What’s Next?
-
- Crossover SUVS and tech are on the horizon
The Consumer – What You Need to Know
-
- Consumers define luxury cars by brand
- Traditional players draw the most interest
- Comfort matters
- Customers are able to treat themselves – and they want to
- Price sensitivity
Luxury Car Definition
-
- Consumers define luxury cars by brand over price
-
- Figure 9: Definition of luxury cars, May 2015
- High-income earners focus on the brand
-
- Figure 10: Definition of luxury cars, by demographics, May 2015
- Those over 55 also use brand to define luxury cars
- Blacks are more likely to rely on brands as an indication of luxury
-
- Figure 11: Definition of luxury cars, by demographics, May 2015
Brand Interest
-
- BMW, Audi, Mercedes-Benz atop consumer shopping lists
-
- Figure 12: Luxury car brands, May 2015
- Established brands play well with those who have high incomes
-
- Figure 13: Luxury car brands, by income, May 2015
- Hispanics prefer BMW while Blacks go for Mercedes-Benz
-
- Figure 14: Luxury car brands, by demographics, May 2015
Luxury Vehicle Consideration
-
- Consumers want to treat themselves, finally feel they can afford luxury
-
- Figure 15: Luxury car reasons for consideration, May 2015
- For a certain age range, it’s about affordability
-
- Figure 16: Luxury car reasons for consideration, by demographics, May 2015
- High-incomes see it as a treat, while middle-incomes are focused on affordability
- Hispanics and Blacks see luxury cars as a treat
Attitudes toward Luxury Cars
-
- Luxury cars perceived as being more comfortable, having more comfort features
-
- Figure 17: Luxury car attitudes, May 2015
- Young folks prioritize looks over comfort
- Hispanics have a preference for style
Price Sensitivity
-
-
- Figure 18: Average pricing for luxury cars, May 2015
- Younger buyers are a bit unrealistic
- Hispanic buyers think like young buyers
-
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Consumer
-
- Consumer consideration of automotive brands
-
- Figure 19: Car Brand, May 2015
Back to top