North America Luxury Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American market is poised to register a CAGR of over 6% over the forecast period (2020-2025).

- Increasing disposable income, changing customer preferences has become one of the most important aspects of the growth of the luxury car market. These cars offer outstanding comfort, indulging and silky-smooth ride, extensive levels of technology used, ample performance, excellent drivability, refinement and above all it serves as a better status symbol than most things on four wheels.

- Automotive industry is America’s largest manufacturing sector, accounting for 3% of America’s GDP in 2018. The automotive industry is also the country’s largest exporter. Over the past five years, around $692 billion worth of vehicles and parts have been exported to other countries.

- The SUV segment is expected to record high CAGR, on account of the rising sales of this segment over other luxury cars segment. passenger-vehicle sales declined at roughly the same rate as SUV sales have risen. Some of the reasons for the rise of SUVs are flexibility, payload-carrying ability, driveability, ease of cabin access and above all commanding view from driver’s seat.

- Some of the major players in the market are GM, Ford. In 2019, have dominated the luxury car market. The other players in the market include other major European and Asian players such as BMW, Mercedes Benz, and Nissan amongst others.

Key Market Trends

Rise in electrification of vehicles

The factor which is likely to fuel the demand of the automotive luxury car market in North America is the growing production of electric vehicles backed by many established players and new startups such as Tesla, Rivian, and Lucid Motors.

Major automotive OEMs have their plan for launching various electric vehicle models. For instance, in 2019, Ford introduced its famous Mustang Mach-E electric SUV and revealed its plans to invest around $11.5 billion in the technology between 2020 to 2022. The company plans to manufacture a variety of EVs and plug-in hybrids which include an electric version of the next-generation F-150 pickup.

In March 2020, GM introduced its EV plans along with its new Ultium battery technology. GM is will be spending around US$20 billion by 2025 to develop electric vehicles and autonomous vehicles, in which 20 all-electric models will be launched by 2023.

SUV is Anticipated to witness higher growth in the North American Luxury Car Market

The North American luxury car market is expected to be driven by SUVs, traditional passenger cars are losing their share to SUV. US was always the largest market and producer of pickup trucks, now the pick trucks are following the trend of electrification with all the major players in the market have launched their electric trucks and some are in pipeline. For instance, in 2019 Tesla unveiled the its first electric pickup truck Cybertruck. This truck will come in three versions with 250 miles, 300 miles, and 500 miles of range. First cycbertruck will be coming off the assembly line by 2021

Some of the foreign brands whose best-seller SUV in North America are Nissan, Hyundai, Kia, Jaguar, Lexus, Porsche, Maserati and Volvo. And in 2020 Kia Telluride bags NACTOY best Utility Vehicle of the Year, it’s interior layout and design meet the luxury SUV standards, while its refined drivetrain, driving dynamics and advanced technology maintain its premium experience.

Competitive Landscape

The North America Luxury Car market is consolidated and majorly dominated by few players, such as GM, Tesla, and Ford amongst others. The market is highly driven with factors like advanced technology, more comfort, growing investment in R&D projects and growing market of electric and autonomous vehicles around the region. To provide more luxurious experience to the people, major automotive luxury car manufacturer is investing huge amount on R&D and making joint venture with other industry players.

- In March 2020, BMW announce the newest additions to their 3 Series model line, the performance plug-in-hybrid 330e and 330e xDrive Sedans. These models comes with eDrive technology, advanced driver assist, safety and infotainment systems.

In January 2020, BMW i Ventures announced that they are investing in Software Motor Company (SMC) a startup involved in development of intelligent motor systems. The new motor system is based on switched reluctance technology, which is managed by advanced cloud software.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support