Table of Contents
Executive Summary
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- The market
- Steady growth of luxury car market stands out against drop in overall new passenger car sales
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- Figure 1: Sales volume and growth rate of luxury cars and total new passenger cars in China, 2013-19
- CAGR of 7.3% over the next five years
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- Figure 2: Best- and worst-case forecast of luxury cars sales volume, 2014-24
- Companies and brands
- Top tier is shared by BBA
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- Figure 3: Market share of luxury car brands, by volume, 2016-18
- The consumer
- Female market is gaining more attention in luxury car category
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- Figure 4: Luxury car owners’ portrait, by gender, 2019 vs 2018
- Emergence of rational considerations towards luxury cars
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- Figure 5: Luxury car brand choices, 2019 vs 2018
- Perception gap between luxury and general car owners on technology and brand history
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- Figure 6: Luxury car brand feature association – selected item, by type of car ownership, March 2019
- Must-have features for female intended luxury car buyers include phone connectivity and storage
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- Figure 7: Interior function requirement – selected items, claim rate on “must have”, by gender, March 2019
- Reaching 81% of luxury car owners and potential buyers through auto websites and auto exhibitions
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- Figure 8: Luxury car information channels – TURF Analysis, March 2019
- What we think
Issues and Insights
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- Marketing the stories behind the brand
- The facts
- The implications
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- Figure 9: 1960s Continental sedan and Lincoln Continental 80th anniversary version
- Building a greater audience via brand collaborations
- The facts
- The implications
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- Figure 10: OnePlus 6T McLaren edition
- Figure 11: Huawei Mate 20 RS Porsche edition
- Promoting luxury experiences and luxury dreams
- The facts
- The implications
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- Figure 12: Porsche design tower
- Figure 13: The Aston Martin Residences
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- Figure 14: Intersect by Lexus
The Market – What You Need to Know
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- Reaching 3 million sales units in 2019
- Upgrading needs and electrification are building up growth potential
Market Size and Forecast
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- Steady growth of luxury car market stands out against a drop in overall new passenger car sales
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- Figure 15: Sales volume and growth rate of luxury cars and total new passenger cars in China, 2013-19
- Luxury car penetration is catching up with the US
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- Figure 16: Luxury car sales units and penetration of China and US, 2013-18
- Sales of domestically-produced luxury cars are rising
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- Figure 17: Percentage of domestically-produced luxury cars and imported luxury cars out of total luxury car sales, 2015-18
- CAGR of 7.3% over the next five years
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- Figure 18: Best- and worst-case forecast of luxury cars sales volume, 2014-24
Market Factors
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- Upgrading needs in saturating market
- The race for luxury electric cars is on
Key Players – What You Need to Know
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- Declining market concentration
- Affordable pricing and customisation are the major competitive strategies
- Luxury MPV and innovations in infotainment systems
Market Share
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- Intensified competition with declining market concentration
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- Figure 19: Market share overview of luxury car brands, by volume, 2015-18
- Top tier is shared by BBA
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- Figure 20: Market share of luxury car brands, by volume, 2016-18
- Only Audi beat last year’s growth
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- Figure 21: Year on year growth rate of luxury brands, by volume, 2017-18
Competitive Strategies
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- Affordable pricing due to localisation of manufacturing
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- Figure 22: Starting price range of Localised models from luxury brands
- Introducing SUV models from super luxury brands
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- Figure 23: SUV models of super luxury brands
Who’s Innovating?
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- Luxury MPV
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- Figure 24: Luxury MPV models
- BMW’s innovation
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- Figure 25: BMW iDrive system 7.0
- Energizing comfort system by Mercedes-Benz
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- Figure 26: Mercedes-Benz Energizing Comfort system
The Consumer – What You Need to Know
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- Portrait of luxury car owners and potential consumers
- Luxury impressions vary by different consumer groups
- Auto websites and auto exhibitions are consumers’ major information channels for luxury cars
Profiling the New Luxury Buyer
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- Female market is gaining more attention in luxury car category
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- Figure 27: Luxury car owners’ portrait, by gender, 2019 vs 2018
- High upgrading intention for luxury cars among current general car owners
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- Figure 28: Luxury car purchasing budget, March 2019
- BMW, Audi and Mercedes are the most popular luxury car brands
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- Figure 29: Luxury car brand choices, March 2019
- Emergence of rational considerations towards luxury cars
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- Figure 30: Luxury car brand choices, 2019 vs 2018
Luxury Impressions
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- Trident of luxury brands – dynamic performance, technology and appearance
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- Figure 31: Luxury car brand feature association, March 2019
- Impress female consumers with interior design and brand ethic
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- Figure 32: Luxury car brand feature association, by gender, March 2019
- Perception gap between luxury and general car owners on technology and brand history
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- Figure 33: Luxury car brand feature association – selected item, by type of car ownership, March 2019
- Ethical expectations on luxury brands are higher among consumer from lower tier cities
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- Figure 34: Luxury car brand feature association, by city tiers, March 2019
Interior Function Requirements
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- Meet the requirements of basic functions
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- Figure 35: Interior functions requirement, claim rate of “must-have”, March 2019
- Highlight features beyond the basic ones on high-end luxury models
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- Figure 36: Interior functions requirement, claim rate of “must-have”, by luxury car purchase budget, March 2019
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- Figure 37: Mercedes-Benz’s in-car fragrance
- Phone connectivity and enough storage are treated as must-have functions by more female intended luxury car buyers
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- Figure 38: Interior functions requirement – selected items, claim rate of “must have”, by gender, March 2019
Information Channels of Luxury Cars
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- Auto websites and auto exhibitions are consumers’ major information channels for luxury cars
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- Figure 39: Luxury car information channels, March 2019
- Reaching 81% of luxury car owners and potential buyers through auto websites and auto exhibitions
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- Figure 40: Luxury car information channels – TURF Analysis, March 2019
Appendix – Market Size and Forecast
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- Figure 41: Total market volume of luxury cars, 2014-24
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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