Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- The issues
- Recent surge in off-lease vehicles could impact decision to opt for new
- Affordability still a concern for many consumers
-
- Figure 1: Luxury attributes, July 2016
- Consumers don’t have a favorite luxury brand
-
- Figure 2: Attitudes toward luxury vehicles, July 2016
- Luxury cars considered high maintenance
-
- Figure 3: Attitudes toward luxury vehicles, July 2016
- Regular makes are increasingly competing with luxury makes on features
-
- Figure 4: American Honda Motor Co., Direct mail, June 2016
- The opportunities
- Men more likely to consider a luxury car for their next purchase
-
- Figure 5: Luxury or premium brand consideration, by gender, July 2016
- Luxury car buyers more likely to purchase
-
- Figure 6: Luxury or premium brand consideration, by car purchase intent, July 2016
- Consumers want comfort over performance
-
- Figure 7: Attitudes toward luxury vehicles, by select demographics, July 2016
- What it means
The Market – What You Need to Know
-
- Luxury market expected to grow
- American infatuation for SUVs and crossovers also apply to the luxury market
- Off-lease luxury vehicles pose challenges and opportunities
Market Size and Forecast
-
- Slow growth expected for luxury vehicles
-
- Figure 8: Total US sales and fan chart forecast of new luxury cars, at current prices, 2011-21
- Figure 9: Total US sales and forecast of new luxury cars, at current prices, 2011-21
Market Breakdown
-
- Luxury SUVs and crossovers experience unprecedented growth
-
- Figure 10: Total US unit sales of new luxury cars by segment, 2011-2015
- Figure 11: Total US unit sales and market share of new luxury cars by segment, 2014-2015
- American brands successful in the SUV/crossover segment
-
- Figure 12: Luxury SUV/Crossover sales by brand, 2015
Market Factors
-
- Interest rates starting to rise, but remain historically low
-
- Figure 13: Average loan rates, Q2 2015 & Q2 2016
- Off-lease vehicles could depress demand for new vehicles
- Millennials buying new and considering luxury brands
-
- Figure 14: Share of US population by generation, 2011- 2021
- Figure 15: Luxury or premium brand consideration, by generation, July 2016
Key Players – What You Need to Know
-
- Tesla’s Model 3 gets over 400K reservations
- Ford and BMW’s innovations spur interest
- Audi avoids stigma from Dieselgate
- Lincoln to provide on-demand service and repair with complimentary loaner cars for 2017 models
- Preference for SUVs and crossovers favor GM and Chrysler
Manufacturer Sales of Luxury SUVs and Crossovers
-
- Nearly every brand saw growth in the SUV/crossover segment
-
- Figure 16: Luxury SUV and crossover sales by manufacturer, 2011 – 2015
What’s Working?
-
- Tesla Model 3 gets over 400K reservations
- Rebooted Ford Mustang dominating sales
-
- Figure 17: Ford Mustang direct mail brochure, July 2016
- BMW’s i8 showcases latest foray into Hybrid technology
-
- Figure 18: BMW i8, BMW mobile advertisement, January 2016
What’s Struggling?
-
- Electric vehicles not named Tesla
What’s Next?
-
- Lincoln to provide on-demand service and maintenance for 2017 models
- Driver awareness monitoring
The Consumer – What You Need to Know
-
- Consumers view European brands as most luxurious
- Older Millennials most likely to consider a luxury car
- Consumers agree luxury cars are self-indulgent purchases for people who want to project a certain image
- Affordability a concern for many consumers considering a luxury brand
- Hispanics most likely and Asians least likely to base luxury on brand
Luxury Car Buyers
-
- Older Millennials are the primary target for luxury vehicles
-
- Figure 19: Luxury or premium brand consideration, by millennials vs non millennials, July 2016
- Men more likely to consider a luxury brand
-
- Figure 20: Luxury or premium brand consideration, by gender, July 2016
-
- Figure 21: Attitudes toward luxury vehicles, by gender, July 2016
Attitudes toward Luxury Vehicles
-
- Younger wealthier parents favor foreign luxury brands over domestic
-
- Figure 22: Attitudes toward luxury cars – CHAID – Tree output, July 2016
- Luxury cars are the ultimate “Treat yourself” purchase
-
- Figure 23: Attitudes toward luxury vehicles, by luxury vehicle consideration, July 2016
Luxury Attributes
-
- Affordability a concern for many potential luxury car buyers
-
- Figure 24: Luxury attributes, July 2016
- Older adults emphasize affordability
-
- Figure 25: Luxury attributes – Affordability most important, by age, July 2016
- Brand most important to men
-
- Figure 26: Luxury attributes – Brand most important, by gender and age, July 2016
Luxury Brand Perceptions
-
- Hispanics most likely to determine luxury by brand
-
- Figure 27: Luxury brand perception, Audi, by race and Hispanic origin, July 2016
- Asians least likely to determine luxury by brand
-
- Figure 28: Attitudes toward luxury vehicles, July 2016
- Mercedes-Benz regarded highly by consumers
-
- Figure 29: Luxury brand perceptions, Luxurious, July 2016
- Tesla seen as cutting edge, but not safe
-
- Figure 30: Luxury brand perceptions – cutting edge, safe, July 2016
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
-
-
- Figure 31: Total US unit sales and market share of new luxury vehicles, by segment, 2011-15
-
Appendix – Key Players
-
-
- Figure 32: Total US luxury vehicle sales and market share, by make, 2011-15
-
Back to top