Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Luxury market remains stagnant until 2020
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- Figure 1: Total US unit sales and fan chart forecast of new luxury cars, 2012-22
- Women in the market for cars less likely than men to consider a luxury brand
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- Figure 2: Luxury intent, by gender, August 2017
- Off-lease vehicles give shoppers cheaper alternatives to a new luxury purchase
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- Figure 3: Method of acquisition, by most recently acquired vehicle, by luxury makes, 2014-17
- The opportunities
- Hispanic Millennials are a priority target
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- Figure 4: Purchase intent, by Millennials and Hispanic origin, August 2017
- Luxury brands still something shoppers aspire to
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- Figure 5: Luxury intent, August 2017
- Comfort, tech, and style will win luxury car shoppers
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- Figure 6: Luxury reasons, August 2017
- Married urbanites show high luxury intent
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- Figure 7: Luxury consideration – CHAID – Tree output, August 2017
- What it means
The Market – What You Need to Know
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- Luxury car market remains stagnant through 2019
- Luxury SUVs and crossovers continue to see growth
- Off-lease CPO vehicles continue to pressure new vehicle sales
- High consumer confidence and employment bodes well for luxury
Market Size and Forecast
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- Forecast predicts stagnant market through 2020
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- Figure 8: Total US unit sales and fan chart forecast of new luxury cars, 2012-22
- Figure 9: Total US unit sales and forecast of new luxury cars, 2012-22
Market Breakdown
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- Luxury segment benefitting from SUV and crossover craze
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- Figure 10: Total US unit sales of new luxury vehicles, by segment, 2012-16
Market Perspective
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- Certified pre-owned and off-lease luxury vehicles pressure new sales
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- Figure 11: Method of acquisition, by most recently acquired vehicle, by luxury makes, 2014-17
Market Factors
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- High consumer confidence and low unemployment empower car shoppers
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- Figure 12: Consumer confidence and unemployment, 2000-July 2017
- Low gas prices fuel SUV and crossover purchases
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- Figure 13: US gasoline and diesel retail prices, January 2007-August 2017
Key Players – What You Need to Know
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- Mercedes-Benz has largest market share in the luxury segment
- Lexus’s car lineup struggles through 2017
- Luxury brands announce conversion to electric and hybrid drive trains
- Tesla’s highly anticipated Model 3 begins mass production
Luxury Car Sales by Brand
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- Americans say “Ja!” to German luxury
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- Figure 14: Market share, by luxury brands, January-August 2017
What’s Working?
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- Mercedes-Benz leads the luxury market
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- Figure 15: Mercedes-Benz C-Class online display ad, September 2017
- Figure 16: Mercedes-Benz #MBLGBT C-Class Cabriolet online display Ad, June 2017
- Jaguar F-Pace is a big success story for the British automaker
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- Figure 17: Jaguar “Impeccable Timing” sales event print advertisement, March 2017
What’s Struggling?
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- Luxury brands struggle to sell cars
- Lexus’ car sales drop by over a fifth of 2016 figures
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- Figure 18: Lexus “Golden Opportunity” sales event, online display ad, August 2017
- BMW’s truck growth unable to overcome car declines
What’s Next?
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- Luxury brands announce electrification plans for model lineup
- Tesla depends on a successful Model 3 rollout
- Cadillac pilots Book by Cadillac subscription service
The Consumer – What You Need to Know
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- Downward trending purchase intent may be reversing
- English speaking Hispanic Millennials show high luxury intent
- Comfort, tech, and style drive luxury purchase reasons
- German luxury brands viewed most positively by consumers
Purchase Intent
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- Downward trending purchase intent goes into reverse
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- Figure 19: Purchase intent, July 2016-August 2017
- Millennials are the dominant car buying group
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- Figure 20: Purchase intent, by generation, August 2017
- English-speaking Hispanic Millennials show high purchase intent
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- Figure 21: Purchase intent, by Millennials and Hispanic origin, August 2017
- Major life events correlate with high purchase intent
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- Figure 22: Purchase intent, by major life events, August 2017
Luxury Intent
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- Nearly two in five aspire for a luxury brand
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- Figure 23: Luxury intent, August 2017
- Millennials a key target for luxury
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- Figure 24: Luxury intent, by generation, August 2017
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- Figure 25: Luxury intent, by generation and Hispanic origin, August 2017
- Men show higher desire for luxury badge than women
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- Figure 26: Luxury intent, by gender, August 2017
- Married city dwellers likely to buy a luxury brand
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- Figure 27: Luxury consideration – CHAID – Tree output, August 2017
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- Figure 28: Infiniti QX30 – Carpool, March 2017
- Figure 29: 2017 Audi A4: Driver Assistance Systems, March 2016
Luxury Reasons
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- Comfort, tech and style drive reasons for buying luxury
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- Figure 30: Luxury reasons, August 2017
- Millennials value what’s under the hood as much as the badge on top
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- Figure 31: Luxury reasons, by Millennials, August 2017
Luxury Brand Perceptions
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- German luxury brands top consumer perceptions
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- Figure 32: Luxury brand perceptions, August 2017
- Blacks view Cadillac favorably in critical factors
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- Figure 33: Luxury brand perceptions, by luxury car shoppers, August 2017
- Tesla electrifies hybrid and EV shoppers
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- Figure 34: Luxury brand perceptions – Tesla, by hybrid/EV shoppers, August 2017
Attitudes toward Car Ownership
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- Personal car ownership isn’t ending anytime soon
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- Figure 35: Attitudes toward car ownership, August 2017
- Luxury car shoppers even more attached to their vehicles
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- Figure 36: Attitudes toward car ownership, by luxury intent, August 2017
- Leasing an attractive option for Hispanic Millennials
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- Figure 37: Attitudes toward car owners, by Hispanic origin and generation, August 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Key Players
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- Figure 38: Units sold and market share, by brand, January-August 2017
- Figure 39: Units sold and market share, by brand, 2016
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