In 2023, Tesla was the leading luxury car brand in the United States, recording luxury sales of around 650,100 units. It edged out its main competitor, BMW, which recorded estimated sales of over 351,600 luxury vehicles.
The U.S. luxury market
Luxury cars represented an estimated 6.8 billion dollars in revenue in the U.S. in 2022, with a projected growth in 2023. The U.S. were the leading market for luxury automobiles worldwide, with a market size over twice the revenues generated by the luxury car market in Germany, the second largest market for the segment. Despite the revenues generated by the luxury market, the U.S. represented less than a quarter of BMW’s regional automobile sales in 2023, while the brand was one of the market leaders in the country. The luxury car segment also made up some 5.3 percent of the total U.S. light vehicle market demand as of June 2022, dwarfed by the crossover segment which held almost half of the market. Car owners view luxury brands positively Luxury automotive brands are amongst the automotive brands perceived as most reliable by car owners. At 79 percent, Toyota’s subsidiary Lexus was the first most reliable car brand for car owners in late 2023. Lexus was also second in overall consumer satisfaction that same year, followed by Tesla. However, the importance of buying luxury cars, motorcycles, or bicycles in the U.S. was relatively low, with 19 percent of the respondents in a recent survey citing the products as a type of luxury goods they spent their earnings on.

At 2.2 million vehicle deliveries, BMW was the leading luxury car brand worldwide. Meanwhile, Volkswagen delivered around 1.7 million vehicles under its Audi brand in 2024. Global luxury car market The global luxury car market is one of the most valuable luxury markets within the luxury goods industry. The global market size for luxury cars is expected to have grown from 245 billion euros in 2010 to 579 billion euros in 2024. Much of the growth is attributed to the increasing consuming power of emerging markets such as China. That said, mature markets such as the United States remain important target countries. In 2024, the U.S. luxury car market recorded around seven billion U.S. dollars in revenue, making it the largest market worldwide. Luxury car market in the United States BMW was second in the ranking for the luxury car market in the U.S. in 2020, with luxury car sales of some 332,400 units. Mercedes-Benz, Lexus, and Audi are the runner-ups. The three German luxury car brands - Stuttgart-based Mercedes-Benz, Munich-based BMW, and Ingolstadt-based Audi - are among the leading brands in the U.S. luxury car market. They are also in the top four luxury brands globally.

The luxury car market in India is experiencing a surge in demand due to the introduction of diverse models and customer-friendly financing plans, particularly for high-end SUVs. Major manufacturers like Audi, BMW, and Mercedes are introducing new upscale car models, while the market also sees a growing preference for electric cars. The plush car market is further strengthened by new entrants and government investments. The market is segmented into vehicle type, drive type, and price range.

BMW remained the leading luxury car brand in the United States in 2020. BMW sold about 280,000 cars in the United States in 2020 and reached a luxury car market share of about 13.7 percent.

U.S. luxury car market share in 2020, by key marque There is something majestic about luxury vehicles. From the glass panel roofs and the LED headlights to the leather-trimmed seats and powerful engines, these automobiles are built with the finest of materials, giving each driver the feeling of uniqueness. Regarding the overall luxury car market, the leading premium car brands include BMW, Lexus, and Mercedes-Benz. The source excludes Tesla because the company does not provide model sales by country. Tesla is among the leading car brands in the United States with deliveries of more than 290,000 units in 2020, including some 13,000 Model S cars, one of the leading electric vehicle models based on sales in the United States. In 2020, the global market for luxury cars was sized at almost 503 billion euros. Market segmentation
Oftentimes, the luxury car market is broken down into the following segments: premium compact vehicles, mid-size luxury cars, high-end luxury cars, ultra-luxury cars, as well as luxury SUVs and crossover models. The boundaries between these categories are blurred and vary between regions. However, the price is largely defined as the major criterion for classifying luxury vehicles.

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Luxury Cars Market Size 2025-2029

The luxury cars market size is forecast to increase by USD 232 billion at a CAGR of 6.8% between 2024 and 2029.

The market is experiencing significant growth, driven by several key trends. One notable trend is the increasing demand for luxury SUVs, as consumers seek larger vehicles for added comfort and functionality. Another trend is the launch of electric luxury car models, which cater to both environmental concerns and the desire for innovative technology. 
Vehicle types, such as hatchbacks, sedans, and SUVs, are being equipped with IoT, AI-driven interfaces, and advanced driver assistance systems (ADAS) to enhance the overall driving experience. Additionally, governments' increasing taxes on luxury cars have created challenges for market growth. These factors, among others, are shaping the future of the market. The market report provides a comprehensive analysis of these trends and their impact on market growth.
The luxury cars market is evolving with rising demand for electric luxury cars, autonomous luxury vehicles, and high-performance sports cars. Luxury SUVs and ultra-luxury sedans from premium car brands feature smart car technology and connected car features. Sustainable luxury cars, hybrid luxury cars, and custom luxury vehicles cater to changing luxury car consumer preferences. Digital cockpit innovations, advanced safety features, and high-end vehicle interiors enhance exclusive car models. Luxury car leasing, subscription services, and market growth reflect shifting ownership trends.

What will be the Size of the Luxury Cars Market During the Forecast Period?

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The market continues to evolve, with private vehicle registrations reflecting a growing demand for high-performance and sustainable transportation solutions. Amidst the global energy shortage and increasing emission standards, the automotive industry is responding with innovative offerings. One such response is the proliferation of electric vehicles (EVs) and hybrid technologies in the luxury car segment. Luxury car manufacturers are investing heavily in EVs and sustainable transportation solutions, recognizing the need for eco-friendly alternatives. These vehicles offer superior driving experiences, with quiet, smooth operation and instant torque. High-quality materials and advanced smart mobility technology enhance passenger and driver comfort.
Moreover, electric mobility is no longer a niche market, but a significant player in the luxury car market. SUVs, sports cars, and super luxury vehicles are all being reimagined as electric or hybrid models. OEMs are also integrating autonomous vehicle capabilities, IoT capabilities, and interfaces driven by artificial intelligence to create a more connected and personalized driving experience. The luxury car market is not just about high-performance vehicles anymore. It's about offering a superior driving experience that caters to the evolving needs and preferences of consumers. With carbon emissions becoming a major concern, the focus is shifting towards sustainable transportation solutions that offer both luxury and efficiency. The future of the luxury car market lies in the integration of technology, sustainability, and high-end design to create vehicles that cater to the demands of discerning consumers.

How is the Luxury Cars Market Segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Executive luxury car
  Super luxury car


Propulsion

  IC engine-based vehicles
  Electric vehicles


Vehicle Type

  Hatchbacks
  Sedans
  Sports Utility Vehicles (SUVs)
  Multi-purpose Vehicles (MPVs)
  Others


Geography

  Europe

    Germany
    UK
    France
    Italy


  North America

    US


  APAC

    China
    India
    Japan
    South Korea


  Middle East and Africa



  South America

By Product Insights

The executive luxury car segment is estimated to witness significant growth during the forecast period.

The market is a significant segment of the global automotive industry, with German manufacturers holding a dominant market share. These companies account for approximately 80% of luxury car sales worldwide. This strategic brand positioning has enabled numerous automotive players to enter the global luxury car market, addressing the rising demand for executive luxury cars across all regions.

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The executive luxury car segment was valued at USD 442.00 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 39% to the growth of

Luxury Car Market Trends | Industry Analysis, Size & Forecast Report

Dataset updated: Jun 27, 2024

Dataset authored and provided by: Mordor Intelligence

License: https://www.mordorintelligence.com/privacy-policy

Time period covered: 2019 - 2029

Area covered: Global

Variables measured: CAGR, Market size, Market share analysis, Global trends, Industry forecast

Description: The Luxury Car Market size is estimated at USD 738.63 billion in 2024, and is expected to reach USD 967.65 billion by 2029, growing at a CAGR of 5.55% during the forecast period (2024-2029).

Quantitative Units: Revenue in USD Billion, Volumes in Units, Pricing in USD

Segments Covered: The luxury car market is segmented by vehicle type, drive type, vehicle class, and geography. By vehicle type, the market is segmented into hatchbacks, sedans, sport utility vehicles, multi-purpose vehicles, and other vehicle types (sports, etc.). By drive type, the market is segmented into internal combustion engines and electric and hybrid. By vehicle class, the market is segmented into entry-level luxury class, mid-level luxury class, and ultra-luxury class.

Regions and Countries Covered: North America, Europe, Asia-Pacific, and Rest of the world

Market Players Covered: Key Players Include Mercedes-Benz, BMW, Volkswagen Group, and Tesla.

In financial year 2024, Mercedes was the leading luxury car brand in terms of sales with around 17 thousand units sold. It was followed by BMW and Audi, with 14.5 thousand and seven thousand units sold respectively. In 2018, Mercedes launched its first 'Made in India' car as well as the first luxury electric vehicle in the country.

The Report Covers China’s Luxury Car Market. It is Segmented by Vehicle Body Style (Hatchbacks, Sedans, Sports Utility Vehicles (SUVs), and Multi-Purpose Vehicles (MPVs)) and Powertrain Type (IC Engine Vehicles and Electric Vehicles). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Luxury Car Market size was valued at USD 1.3 trillion in 2024 and is projected to reach USD 2.12 trillion by 2030. Along with a CAGR of around 10.28%.

In financial year 2024, Mercedes-Benz had the largest market share in the luxury car segment in India, at 37 percent. It was followed by BMW at 32 percent. During the same year, the total sales of luxury cars in India reached 45.3 thousand units.

The European Luxury and Premium Cars Market Report is Segmented by Vehicle Type (Hatchback, Sedan, Sport Utility Vehicles, and Multi-Purpose Vehicles), Drive Type (IC Engine and Electric), and Country (Germany, United Kingdom, France, Spain, Italy, Russia, The Netherlands, Denmark, Sweden, Belgium, Switzerland, and Rest of Europe). The Report Offers Market Size and Forecast for the Europe Luxury Car Market in Value (USD) for all the Above Segments.

The China luxury car market size was valued at USD 195.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 351.0 Billion by 2033, exhibiting a CAGR of 6.70% from 2025-2033. The China luxury car market share is driven by rising disposable incomes, growing demand for premium features, and a preference for status symbols. Technological advancements, government incentives for new energy vehicles, and expanding dealership networks further fuel market growth.

IMARC Group provides an analysis of the key trends in each segment of the China luxury car market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on vehicle type, fuel type, price range and engine capacity.

Between 2015 and 2018, Ferrari was remarkably more popular in Asia than in Europe or the Americas. Over this period, it lost eight percent of the European luxury car market and six percent of the American one. In 2018, the Italian car brand accounted for more than a quarter of the luxury car market in Asia. With a market share ten percent larger than in the traditional markets of Europe and America, Ferrari was filling the demand for luxury cars among new affluent individuals in Asia. When looking at the sales volume, the number of shipments made to Asian countries amounted to about one-fifth of the shipments made worldwide.

A global status-symbol In total, Ferrari shipped about 9,251 road vehicles in 2018. Ferrari’s decision to keep low production volumes was dictated by the desire to maintain a reputation for exclusivity among its customers. In 2018, their range of road cars encompassed only eight models: of these, sports cars accounted for two-thirds of the global shipments.

Domestic popularity The domestic sales volume of Ferraris amounted to less than five hundred units in 2018: Italy was the third European market after the United Kingdom and Germany. In Italy, the brand is considered as a national icon, as reflected by the buzz it generates on social media: on Facebook, Ferrari is the most talked-about automotive brand in the country.

The global luxury car market, valued at $482.74 billion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 6.56% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, rising disposable incomes in emerging economies, particularly in APAC regions like China and Japan, are significantly increasing the demand for premium vehicles. Secondly, technological advancements, including the integration of advanced driver-assistance systems (ADAS), electrification, and connectivity features, are enhancing the luxury car ownership experience, attracting a broader customer base. The shift towards electric vehicles (EVs) within the luxury segment presents both opportunities and challenges. While EV adoption is increasing due to environmental concerns and government incentives, the higher initial cost of EVs compared to traditional internal combustion engine (ICE) vehicles remains a restraint. The market is segmented by product type (executive luxury cars and super luxury cars) and propulsion system (ICE and EV). Competition is fierce, with established automakers like Mercedes-Benz, BMW, and Audi vying for market share alongside emerging EV players like Tesla and luxury brands such as Ferrari and Aston Martin. These companies employ various competitive strategies, including technological innovation, branding, and strategic partnerships, to maintain their market positions. Regional variations in growth rates are expected, with APAC anticipated to lead due to its expanding middle class and increasing preference for luxury goods. Europe and North America will also continue to hold substantial market share, driven by established consumer demand. The industry faces risks including global economic fluctuations, supply chain disruptions, and the ongoing transition to sustainable mobility. The luxury car market’s success hinges on the ability of manufacturers to balance technological innovation with the preservation of their brand's heritage and exclusivity. The increasing focus on sustainability and the integration of advanced technology necessitate strategic investments in research and development. The rise of subscription services and new mobility solutions could also transform the way luxury cars are accessed and utilized. While the market faces challenges, its growth trajectory is undeniably positive, with continued opportunities for established players and emerging entrants to carve out their niche. Market leadership will likely depend on the successful navigation of evolving consumer preferences, technological advancements, and global economic conditions.

China Luxury Car Market size was valued at USD 161.55 Billion in 2024 and is projected to reach USD 189.28 Billion by 2031, growing at a CAGR of 2.00% from 2024 to 2031.

China Luxury Car Market Drivers

Growth of the Economy and Acquisition of Wealth: The populace of China now has considerably more disposable income because to the country’s quick economic growth. More people are rising into the high-income range as the nation continues to industrialise and urbanise. A substantial market for luxury products, especially expensive cars, has been generated by the development of the middle class and the rise in high-net-worth people (HNWIs).

Development of Infrastructure and Urbanisation: Cities are growing larger and more sophisticated infrastructure is being developed as a result of China’s continuous urbanisation. Due to the improved access to luxury automobile dealerships and servicing facilities made possible by this urban expansion, consumers now find ownership to be more convenient. Better road systems and urban design also make driving more enjoyable, which promotes the purchase of luxury cars.

Customer Expectations and Brand Image: In China, luxury vehicles are viewed as a representation of wealth and status and a status symbol. Premium brands are highly favoured by Chinese customers, who connect them to social standing, quality, and innovation. Demand is driven by consumers who want to purchase high-end cars to elevate their social status since they view luxury brands as symbols of personal achievement.

The global luxury vehicle market, currently valued at approximately $XX million (estimated based on provided CAGR and market trends), is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.45% from 2025 to 2033. Several key drivers fuel this expansion. Rising disposable incomes in emerging economies, particularly in Asia-Pacific regions like China and India, are significantly boosting demand for high-end vehicles. Technological advancements, such as the integration of advanced driver-assistance systems (ADAS), electrification, and autonomous driving capabilities, are also enhancing the appeal of luxury vehicles and justifying higher price points. Furthermore, the increasing preference for personalized experiences and bespoke customization options among affluent consumers further fuels market growth. However, economic downturns and global uncertainties can act as potential restraints, influencing purchase decisions in the luxury segment. The market is segmented by vehicle type (e.g., sedans, SUVs, coupes) and application (personal use, commercial use), with SUVs currently holding a dominant market share due to their versatility and practicality. Leading manufacturers like BMW, Mercedes-Benz, Tesla, and others are employing various competitive strategies, including technological innovations, brand building, and strategic partnerships, to maintain their market positions and cater to evolving consumer preferences. Growing consumer engagement through digital marketing, personalized services, and exclusive experiences is crucial for maintaining brand loyalty and attracting new customers within this highly competitive landscape. The geographical distribution of the luxury vehicle market shows strong regional variations. North America and Europe continue to be major markets, driven by established affluent consumer bases and strong automotive industries. However, the Asia-Pacific region is witnessing the fastest growth, fueled by the rapid expansion of the middle class and increasing demand for luxury goods. The market's future trajectory will depend on several factors, including the continued economic growth in emerging markets, advancements in vehicle technology, the adoption of sustainable practices by manufacturers, and the evolving preferences of the luxury consumer. Manufacturers are focusing on enhanced sustainability initiatives, incorporating electric and hybrid powertrains to meet growing environmental concerns while maintaining luxurious features and performance. This strategic shift will likely reshape the competitive landscape and drive further innovation in the years to come.

This statistic portrays luxury car sales in 2016, with a breakdown by marque. Globally, customers purchased just under 1.9 million Audi vehicles between January and December 2016. The Audi brand is part of Germany's Volkswagen Group.

The Australian luxury car market, while smaller than global counterparts, exhibits robust growth potential. Analyzing the provided data (Study Period: 2019-2033, Base Year: 2025, Forecast Period: 2025-2033, Historical Period: 2019-2024, CAGR 5.28%), we can infer a dynamic market influenced by several factors. The presence of established luxury brands like Aston Martin, BMW, Mercedes-Benz, and Tesla, alongside emerging players, indicates a competitive landscape. High disposable incomes within a specific demographic segment drive demand, while factors like economic fluctuations and government regulations regarding emissions and import tariffs can act as restraints. The shift towards electric vehicles (EVs) presents a significant trend, potentially disrupting the dominance of traditional internal combustion engine (ICE) vehicles. The market segmentation into ICE and EV clearly indicates a future where EVs will likely gain market share, though the transition timeline remains uncertain given the current infrastructure limitations and consumer preferences. Considering a global luxury car market size context and the provided CAGR of 5.28%, even without the specific Australian market size (XX), we can reasonably project its growth. Assuming a conservative estimation based on global trends and Australia’s relatively affluent population, we could project a market size growth, even if modest. The key driver remains the high-income segment's desire for luxury vehicles, balanced against the environmental push towards EVs. Further analysis would require detailed data on Australian specific consumer preferences, government policies, and infrastructure development to refine these estimations. The market's success hinges on a balance between upholding luxury standards with sustainability initiatives— a crucial factor for future projections.

According to Cognitive Market Research, The Global Luxury Car Coachbuilding Market is Growing at a Compound Annual Growth Rate (CAGR) of 5.60% from 2023 to 2030.

The demand for luxury car coachbuilding is rising due to the numerous strategies adopted by key participants.
Demand for carbon fibre remains higher in the luxury car coachbuilding market.
The aftermarket category held the highest luxury car coachbuilding market revenue share in 2023.
North American luxury car coachbuilding will continue to lead, whereas the Asia Pacific luxury car coachbuilding market will experience the most substantial growth until 2030.

Rising Disposable Income and Exclusivity to Provide Viable Market Output

Increasing disposable income among affluent consumers has led to a growing demand for luxury vehicles, including those customised by coachbuilders. As more people become wealthy, they are looking to spend their money on high-end products and services that reflect their status and lifestyle. Moreover, luxury car coachbuilding provides a high level of exclusivity that cannot be achieved through mass-produced vehicles. Coachbuilders can create bespoke vehicles that are one-of-a-kind, making them highly desirable among affluent consumers who value exclusivity and prestige.

For instance, in 2020, German coachbuilder Brabus launched the Rocket 900, a customized version of the Mercedes-Benz S-Class. The Rocket 900 features bespoke bodywork and a high-performance engine that produces 888 horsepower, making it one of the most powerful luxury cars in the world.

(Source:www.brabus.com/en/cars/supercars/brabus-900-gROCKET.html)

Advancements in Technology and Brand Image to Propel Market Growth

Advancements in technology have made it possible for coachbuilders to create more intricate and innovative designs. The use of 3D printing, computer-aided design (CAD), and other advanced materials, such as carbon fiber has allowed coachbuilders to push the boundaries of vehicle design and create truly unique and innovative vehicles. Luxury car coachbuilding can enhance the brand image of automakers and coachbuilders. Coachbuilding allows them to showcase their expertise and craftsmanship, which can be used to attract new customers and enhance their reputation in the market. By creating bespoke vehicles, coachbuilders can create a unique identity for their brand and differentiate themselves from their competitors.

For instance, in 2020, Italian coachbuilder Touring Superleggera launched the Aero 3, a customized version of the Ferrari F12 Berlinetta. The Aero 3 features bespoke bodywork and a high-quality interior, and it is designed to offer exclusivity and individuality to customers.

(Source:www.autocar.co.uk/car-news/new-cars/touring-superleggera-aero-3-retro-inspired-v12-supercar)

Market Dynamics of Luxury Car Coachbuilding

High Cost, Limited Production Capacity, and Regulatory Compliance to Restrict Market Growth

The luxury car coachbuilding market faces several challenges and restraints that impact its growth and expansion. Firstly, the high cost of luxury car coachbuilding is a significant restraint. It requires skilled craftsmen and high-quality materials that drive up the overall cost of production. As a result, the cost of a coachbuilt vehicle can be significantly higher than a mass-produced luxury car, making it unaffordable for many consumers. Secondly, coachbuilders typically have limited production capacity, which can result in long wait times for customers. This can be a major deterrent for potential buyers who are looking for a quick turnaround time. Thirdly, coachbuilders must comply with various regulations and safety standards, which can add to the cost and time required to produce a coachbuilt vehicle. This can limit the scope of customisation options and make it difficult for coachbuilders to meet specific customer demands.

Impact of COVID–19 on the Luxury Car Coachbuilding Market

The COVID-19 pandemic has had a significant impact on the luxury car coachbuilding market. Many coachbuilders have experienced a decline in demand due to the economic uncertainty caused by the pandemic. The pandemic has also disrupted supply chains, causing delays in the delivery of materials and components, which has affected production schedules. Additionally, the closure of dealerships and showrooms has made it difficult for coachbuilders to showcase their products and connect w...

The high-performance car market, valued at $596.77 billion in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 7.79% from 2025 to 2033. This growth is fueled by several key factors. Rising disposable incomes in developing economies, particularly in APAC regions like China and India, are driving demand for luxury and high-performance vehicles. Technological advancements, including the integration of advanced driver-assistance systems (ADAS) and electric powertrains, are enhancing the appeal and performance capabilities of these vehicles. The increasing preference for personalized experiences and exclusive brands further contributes to market expansion. The market is segmented by product type (non-electric and electric), car type (sports car and luxury car), and geography, with North America and Europe currently dominating, but significant growth potential expected from APAC. The electric segment is poised for substantial growth, driven by government incentives, environmental concerns, and technological advancements leading to improved performance and range in electric high-performance cars. The competitive landscape is marked by a mix of established automakers like Ferrari, Porsche, and Mercedes-Benz, and emerging electric vehicle manufacturers like Tesla and Rimac. These companies are employing various competitive strategies, including product innovation, brand building, and strategic partnerships, to secure market share. While the market faces restraints such as stringent emission regulations and fluctuating raw material prices, the overall outlook remains positive due to the unwavering demand for exclusive, high-performance vehicles and the ongoing technological advancements that continuously push the boundaries of automotive engineering and performance. The continued development and adoption of hybrid and fully electric powertrains are expected to further reshape the competitive landscape in the coming years.