The luxury car market has seen record sales this year despite international economic challenges. A new report by automotive market intelligence provider Jato Dynamics has revealed that sales of luxury cars have risen 10.3 percent globally, amid an 8.3 percent decrease in the overall global car market.
The new figures demonstrate a stark contrast to the economic climate, as the number of people taking out loans to purchase luxury cars also rose. This demonstrates that many luxury car buyers are confident about their long-term financial situations. The report noted that in many markets, luxury cars are considered a form of status symbol.
Notable European markets such as Britain and Germany witnessed 26.2 percent and 25 percent rises respectively, while the US saw sales rise by 8.8 percent. This growth was largely attributed to the relatively quick recovery of the US economy from the pandemic.
High profile brands such as Mercedes-Benz, BMW, Audi, and Lexus all posted strong sales over the course of the year. Analysts have attributed this to the relatively low interest rates on loans, as well as the search for greater customization options in car buying.
Experts note that despite the pandemic, buyers in the luxury car market have both the resources and the desire to spend on luxury cars. For some, this reflects a shift in customers’ perception of luxury cars. With increasing demand for personalized vehicles, there has been a significant increase in demand for luxury cars over the past few years.
This shift has been reflected in the sales figures of luxury carmakers. Mercedes-Benz posted a 25.3 percent rise in year-on-year sales in 2020, with BMW posting a 7.3% jump from 2019. Analysts cite increased confidence in the market, as well as wealthy buyers turning to luxury cars as safe-haven assets during times of economic uncertainty.
While the pandemic presented many economic challenges, the luxury car market has been resilient. With strong demand from wealthy customers, the industry is expected to remain largely strong in 2021.