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Luxury Vehicles - US - March 2021

OVERVIEW 
What you need to know
Key issues covered in this Report
Definition
Economic and other assumptions
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Figure 1: Luxury vehicle sales market size and sales forecast, 2015-25
Impact of COVID-19 on luxury vehicles
Figure 2: Short, medium and long term impact of COVID-19 on nonluxury vehicles, March 2020
Opportunities and challenges
Younger consumers are the new target audience for luxury cars
NFTs can generate longer-term interest and purchase consideration
The COVID-19 pandemic and recession can negatively affect vehicle affordability
Luxury brand collaborations can spark interest among consumers
THE MARKET – KEY TAKEAWAYS 
Luxury sales to recover in the longer term
Global chip shortages threaten to balloon vehicle sales, create vehicle shortages
Luxury OEMs focus on a sustainable, tech-forward future
MARKET SIZE AND FORECAST
Luxury sales on pace to recover in longer term
Figure 3: Luxury vehicle sales market size and sales forecast, 2015-25
Figure 4: Total US unit sales and forecast of new luxury vehicles, 2015-25
Impact of COVID-19 on luxury vehicles
Figure 5: Short, medium and long term impact of COVID-19 on nonluxury vehicles, March 2020
Learnings from the last recession
MARKET FACTORS 
Global chip shortage continues to affect automotive supply chain
As economic instability persists, COVID-19 incentives and programs could help luxury vehicle market
Figure 6: Consumer confidence and unemployment, 2000-January 2021
Sustainability and technology are leading the evolution of luxury automotive
MARKET OPPORTUNITIES 
Luxury brand collaborations can help reach younger car buyers
NFTs could be the next big thing for luxury automotive
COVID-19 increased interest in road trips and presents opportunity for luxury rentals
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Tesla continues to be the category’s cutting-edge leader
Jaguar plans for an all-electric future by 2025
Cadillac’s long-term tech investments are paying off
Lexus targets younger consumers through sneaker collaboration
COMPETITIVE STRATEGIES 
Tesla remains a dominant figure in tech-forward luxury
Figure 7: Tesla highlights various vehicle technology features
Jaguar to go all-electric by 2025
Figure 8: Jaguar, “Reimagine modern luxury,” February 2021
Cadillac’s technology investments solidify its spot as a pack leader
Figure 9: Cadillac Super Cruise, February 2021
Lexus seeks to epitomize style with sneaker collaboration
Figure 10: Lexus x RTFKT sneaker collar, February 2021
THE CONSUMER – KEY TAKEAWAYS  
Luxury vehicle ownership has increased over the years
First-time female luxury car buyers present opportunity to gain market share
Consumers doubt if luxury vehicles are worth the cost
LUXURY VEHICLE OWNERSHIP AND CONSIDERATION
Increased discretionary savings led to increase in luxury vehicle ownership
Figure 11: Luxury vehicle ownership, by year comparison, January 2021
Luxury ownership and consideration unexpectedly decreases with age
Figure 12: Luxury vehicle ownership, by age, January 2021
Figure 13: Lexus IS: Names – All In with Tyler, February 2021
Current luxury vehicle owners see value in repurchasing another luxury brand
Figure 14: Luxury vehicle consideration, by current luxury vehicle ownership, January 2021
Low use of some alternate transportation creates opportunities with urban consumers
Figure 15: Luxury vehicle consideration, by area, January 2021
LUXURY BRAND PURCHASE MOTIVATORS
Self-indulgence at the heart of purchase consideration factors
Figure 16: Luxury vehicle purchase motivators, January 2021
Aspirational and influential prestige attracts young car buyers
Figure 17: Luxury vehicle purchase motivators, by age, January 2021
Empowered luxury can attract young, female first-time buyers
Figure 18: Luxury vehicle purchase motivators, by age and gender, January 2021
PURCHASE BARRIERS
Lack of perceived value threatens luxury car purchases
Figure 19: Luxury vehicle purchase barriers, January 2021
Luxury vehicles don’t fit the lifestyle of would-be “luxury” consumers
Figure 20: Luxury vehicle purchase barriers, by net worth, by generations, January 2021
COVID-19-related concerns threaten luxury consideration
Figure 21: Luxury vehicle purchase barriers, January 2021
LUXURY BRAND ATTRIBUTES
Luxury brands stylish, safe, but lack perception of being a good value
Figure 22: Luxury vehicle brand attributes, January 2021
Younger car buyers are less likely to have high brand perceptions of safety
Figure 23: Luxury vehicle brand perceptions of being safe, by age, January 2021
Tesla overwhelms, overshadows other brand’s innovative tech offerings
Figure 24: Luxury vehicle brand perceptions of being cutting edge, by age, January 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
APPENDIX – THE CONSUMER
Figure 25: Luxury vehicle ownership by brand, January 2021

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