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Luxury Cars - US - October 2014

Published By :

Mintel

Published Date : Oct 2014

Category :

Machines

No. of Pages : 140 Pages

Luxury car sales have been strong, but seasoned marketers know that any brand is only as good as its next sale. Marketers have an opportunity to sustain the next generation of luxury buyers with impressive ongoing service, next-gen technology, and the possibility of a more comfortable car buying process.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

The market
Luxury car market estimated to top 2.5 million units
Figure 1: Total US unit sales and fan chart forecast of Luxury cars, 2009-19
Entry-level luxury cars now most common vehicle
Figure 2: Total US unit sales of new luxury vehicles, by segment, 2012 and 2014
Key players
Four luxury brands represent nearly 50% market share
Figure 3: Top 4 luxury car brands, July 2013-2014
The consumer
Luxury buyers want new and improved technology
Figure 4: Reasons for wanting another vehicle, by luxury car intenders, May 2014
Young consumers twice as likely to buy compact cars
Figure 5: Luxury car purchase intenders by vehicle body style consideration, by age, May 2014
Luxury car buyers want reliable maintenance and warranties
Figure 6: Incentives and service features important to new vehicle intenders, May 2014
Tech and audio features more likely to influence luxury buyers
Figure 7: Tech and audio features important to luxury vehicle intenders, May 2014
Opportunity for developing technologies to attract luxury car buyers
Figure 8: Interest in developing technologies, functionality, features, and services when purchasing next new luxury car, May 2014
What we think

Issues and Insights

What is next for entry-level luxury buyers?
The issues
The implications
What “next-gen” technology resonates with luxury car buyers?
The issues
The implications
Should luxury dealerships embrace a “no-pressure” environment?
The issues
The implications

Trend Application

Trend: Life Hacking
Trend: Return to the Experts
Trend: Prepare for the Worst

Market Size and Forecast

Key points
Luxury car market estimated to top 2.5 million units
Figure 9: Total US unit sales and forecast of new luxury vehicles, 2009-19
Luxury cars account for 15.5% of market
Figure 10: Total US unit sales and forecast of total new vehicles and new luxury vehicles, 2009-19
Fan chart forecast
Figure 11: Total US unit sales and fan chart forecast of Luxury cars, 2009-19

Market Drivers

Key points
Aging US fleet helps create demand from new luxury buyers
Figure 12: Average age of light Vehicles, 2002-13
Rise in median home prices increases luxury consumption
Figure 13: Median existing home prices vs new light vehicle sales, 2002-13
High gas prices may pave way for more hybrid luxury vehicles
Figure 14: All grades all formulations retail gasoline prices, 2000-14
Monthly payments made more affordable by leasing, but headwinds appear
Figure 15: New lease share of new vehicle financing, 2009-13

Segment Performance

Key points
Entry–level luxury cars now most common vehicle
Figure 16: Total US unit sales of new luxury vehicles, by segment, 2012 and 2014

Segment Performance – Near-luxury

Key points
Near-luxury vehicle sales stable
Figure 17: Total US unit sales of near-luxury vehicles, 2009-14
Near-luxury crossovers and SUVs drive category
Figure 18: Total US unit sales of near-luxury vehicles, by category, 2009-14

Segment Performance – Entry-level Luxury

Key points
More affordable luxury brands selling fast
Figure 19: Total US unit sales of entry-level luxury vehicles, 2009-14
Entry-level luxury car and crossover sales equally strong
Figure 20: Total US unit sales of entry-level luxury vehicles, by category, 2009-14

Segment Performance – Mid-level Luxury

Key points
Mid-level luxury vehicles account for one third of new sales
Figure 21: Total US unit sales of mid-level luxury vehicles, 2009-14
Crossover/SUV sales drive segment
Figure 22: Total US unit sales of mid-level luxury vehicles, by category, 2009-14

Segment Performance – Elite Luxury

Key points
Elite luxury sales growth estimated to cool in 2014
Figure 23: Total US unit sales of elite luxury vehicles, 2009-14
Crossovers less prominent in elite luxury category
Figure 24: Total US unit sales of elite luxury vehicles, by category, 2009-14

Segment Performance – Exotic Cars

Key points
Corvette drives exotic luxury segment to strong growth
Figure 25: Total US unit sales of exotic cars, 2009-14

Leading Companies

Key points
Four luxury brands represent nearly 50% market share
Figure 26: Top 10 luxury car brands, July 2013-2014
Competing in segment, BMW gains share with 3-Series
Figure 27: BMW luxury car sales, by model, July 2013-2014
Mercedes-Benz sees growth in higher-end models
Figure 28: Mercedes-Benz luxury car sales, by model, July 2013-2014
Having survived, Lexus looks to thrive
Figure 29: Lexus luxury car sales, by model, July 2013-2014
GMC builds crossover/SUV vehicles only in near-luxury segment
Figure 30: GMC luxury car sales, by model, July 2013-2014
Buick looks to smaller vehicles to attract new audience
Figure 31: Buick luxury car sales, by model, July 2013-2014
Audi makes splash with diesel
Figure 32: Audi luxury car sales, by model, July 2013-2014

Innovations and Innovators

Tesla releases downloadable software upgrade for Model S
Figure 33: Tesla Model S software Update
Multiple smartphone integrations sure to entice buyers
Headlight innovations go easily noticed by consumers
Apple, Google enter integrated dashboards
Figure 34: Apple CarPlay
Figure 35: Android Auto

Marketing Strategies

Mercedes-Benz launches GLA on Instagram
Figure 36: Mercedes-Benz Instagram ad, “#GLAPacked,” 2014
Audi makes no compromise in launching A3 like a champion
Figure 37: Audi television ad, “Dues,” March 2014
Figure 38: Audi television ad, “Touch,” March 2014
Lexus marks performance with “F”
Figure 39: Lexus television ad, “Temptation,” June 2014
BMW builds bobsled for 2014 Olympic Winter Games
Figure 40: BMW television ad, “Hello Future,” February 2014

Luxury Car Buyers

Key points
Most luxury car buyers have one or two vehicles
Figure 41: Number of household vehicles owned by luxury car intenders, May 2014
Luxury car buyers already own passenger cars
Figure 42: Vehicle types already owned by luxury car intenders, May 2014
Luxury car intenders approach buying process independently
Figure 43: Who will be responsible for the purchase of the next luxury vehicle, May 2014

Price Paid for Recently Purchased Vehicle

Key points
Buying luxury vehicle is a step up in price for most consumers
Figure 44: Price paid for most recently purchased vehicle, May 2014
In market segmented by price, high-end buyers represent 20%
Figure 45: Price paid for most recently purchased vehicle, by household income, May 2014
On average, luxury car buyers expect to pay $40,000
Figure 46: Expected total price of next new car, May 2014

New, Used, or CPO Luxury Vehicles in Household

Key points
Luxury car buyers want new cars, but CPO trend rising
Figure 47: Luxury vehicle intenders by whether vehicle will be purchased new, used, or CPO, May 2014
Men more likely to buy new
Figure 48: Luxury vehicle intenders by whether vehicle will be purchased new, used, or CPO, by gender, May 2014
More affluent luxury car buyers plan to buy new
Figure 49: Luxury vehicle intenders by whether vehicle will be purchased new, used, or CPO, by household income, May 2014

When Will Luxury Vehicle Purchase Occur?

Key points
Men more likely to buy soon
Figure 50: Approximately when will the next luxury vehicle purchase occur, by gender, May 2014
Parents expecting to buy luxury cars soon
Figure 51: Approximately when will the next luxury vehicle purchase occur, by presence of children in household, May 2014
Some 18-34s expect to buy within 30 days
Figure 52: Approximately when will the next luxury vehicle purchase occur, by age, May 2014

Motivators for Purchase of Luxury Vehicle

Key points
Luxury buyers want new and improved technology
Figure 53: Reasons for wanting another vehicle, by luxury car intenders, May 2014
Luxury car buyers desire technology regardless of income
Figure 54: Reasons for wanting another vehicle, by luxury car intenders, by household income, May 2014

Luxury Vehicle Types Considered

Key points
Luxury car intenders prefer mid- and full-sized cars
Figure 55: Luxury car purchase intenders by vehicle body style consideration, by gender, May 2014
Crossovers/SUVs suitable as a family car
Figure 56: Luxury car purchase intenders by vehicle body style consideration, by presence of children in household, May 2014
Young consumers twice as likely to buy compact cars
Figure 57: Luxury car purchase intenders by vehicle body style consideration, by age, May 2014

Monthly Payment versus Total Cost

Key points
Nearly half of luxury car intenders focus on total price
Figure 58: Monthly payment or total price on next luxury vehicle, by household income, May 2014
Many younger car buyers focused on monthly payments
Figure 59: Monthly payment or total price on next luxury vehicle, by age, May 2014

Incentives and Service Features Important to Luxury Vehicle Intenders

Key points
Luxury car buyers want reliable maintenance and warranties
Figure 60: Incentives and service features important to new vehicle intenders, May 2014
Women more focused on financial implications when buying luxury cars
Figure 61: Incentives and service features important to new vehicle intenders, by gender, May 2014
Attractive incentives and service depends on household income
Figure 62: Incentives and service features important to new vehicle intenders, by household income, May 2014
Warranties most attractive to older car buyers
Figure 63: Incentives and service features important to new vehicle intenders, by age, May 2014

Styling and Comfort Features Important to Luxury Vehicle Intenders

Key points
Luxury car buyers more likely to want most styling and comfort features
Figure 64: Styling and comfort features important to new vehicle intenders, May 2014
Women want comfortable, heated seats
Figure 65: Styling and comfort features important to new vehicle intenders, by gender, May 2014
Older luxury car buyers want creature comforts
Figure 66: Styling and comfort features important to new vehicle intenders, by age, May 2014

Tech and Audio Features Important to New Vehicle Intenders

Key points
Tech and audio features more likely to influence luxury buyers
Figure 67: Tech and audio features important to luxury vehicle intenders, May 2014
Men influenced by touchscreen, multimedia
Figure 68: Tech and audio features important to luxury vehicle intenders, by gender, May 2014
HD radio, rear-seat entertainment opportunities for entry-level segment
Figure 69: Tech and audio features important to luxury vehicle intenders, by household income, May 2014
Smartphone connectivity represents next generation of desired tech
Figure 70: Tech and audio features important to luxury vehicle intenders, by age, May 2014

Safety Features Important to Luxury Vehicle Intenders

Key points
Luxury car intenders more influenced by technology in safety features
Figure 71: Safety features important to new vehicle intenders, May 2014
Parents seek automated safety features
Figure 72: Safety features important to new vehicle intenders, by presence of children in household, May 2014

Top Vehicle Brands Seriously Considered by Luxury Car Intenders

Key points
Luxury brands less popular than household names
Figure 73: Top vehicle brands considered by those considering a luxury car, May 2014
Men more likely to consider domestic luxury car
Figure 74: Top vehicle brands considered by those considering a luxury car, by gender, May 2014
Women less interested in origin of brand
Figure 75: Type of luxury vehicles most likely to purchase, by gender, May 2014
Interest in Developing Technologies, Functionality, Features, and Services When Purchasing Next 

New Luxury Car

Key points
Wireless charging appeals to all, other new tech sought by luxury buyers
Figure 76: Interest in developing technologies, functionality, features and services when purchasing next new luxury car, May 2014

Attitudes of Luxury Car Intenders toward Various Emerging Makes, Models, and Features

Key points
Acura and Cadillac perceived in same tier as BMW, Mercedes-Benz
Figure 77: Attitudes of luxury car intenders toward various emerging makes, models and features, by gender, May 2014
More affluent luxury car buyers see foreign brands as more luxurious
Figure 78: Attitudes of luxury car intenders toward various emerging makes, models and features, by household income, May 2014

Race and Hispanic Origin

Figure 79: Household ownership of main luxury brand vehicles, by race/Hispanic origin, April 2013-June 2014
Figure 80: Select attitudes and opinions about cars, by race/Hispanic origin, April 2013-June 2014
Figure 81: Decision makers for automobiles purchased in the past year by household for luxury car buyers, by race/Hispanic origin, April 2013-June 2014
Figure 82: When next new vehicle will be purchased by luxury car buyers, by race/Hispanic origin, April 2013-June 2014

Appendix – Other Useful Consumer Tables

Who will be responsible for luxury purchase
Figure 83: Who will be responsible for the purchase of the next luxury vehicle, by area, May 2014
Type of most recently purchased vehicle
Figure 84: Type of most recently purchased vehicle, May 2014
Figure 85: Type of most recently purchased vehicle, by gender, May 2014
Figure 86: Type of most recently purchased vehicle, by household income, May 2014
New, used, or CPO
Figure 87: Luxury vehicle intenders by whether vehicle will be purchased new, used, or CPO, by age, May 2014
When will next luxury vehicle purchase occur?
Figure 88: Approximately when will the next luxury vehicle purchase occur, May 2014
Figure 89: Approximately when will the next luxury vehicle purchase occur, by household size, May 2014
Reasons for wanting another vehicle
Figure 90: Reasons for wanting another vehicle, by luxury car intenders, by age, May 2014
Vehicle body style consideration
Figure 91: Luxury car purchase intenders by vehicle body style consideration, May 2014
Monthly payment or total price
Figure 92: Monthly payment or total price on next luxury vehicle, May 2014
Type of luxury vehicle most likely to purchase
Figure 93: Type of luxury vehicles most likely to purchase, by household income, May 2014
Figure 94: Type of luxury vehicles most likely to purchase, by age, May 2014
Top vehicle brands considered
Figure 95: Top vehicle brands considered by those considering a luxury car, by age, May 2014
Figure 96: Top vehicle brands considered by those considering a luxury car, by household income, May 2014
Interest in developing technologies
Figure 97: Interest in developing technologies, functionality, features and services when purchasing next new luxury car, by age, May 2014
Attitudes toward emerging makes, models, and features
Figure 98: Attitudes of luxury car intenders toward various emerging makes, models and features, by age, May 2014

Appendix – Trade Associations

Appendix – Market Segment Classification

Figure 99: Segment classification, by make and model – Elite-luxury, 2014
Figure 100: Segment classification, by make and model – Entry-level, 2014
Figure 101: Segment classification, by make and model – Exotic, 2014
Figure 102: Segment classification, by make and model – Mid-Luxury, 2014
Figure 103: Segment classification, by make and model – Near-Luxury, 2014

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