Electrifying the Luxury Car Market

As the world’s luxury car market grows, electric cars are becoming an increasingly popular choice. Electric vehicles have several benefits over their conventional counterparts, including lower fuel consumption. Plus, they are more fun to drive. Many luxury car manufacturers are now well into the electrification process, including Jaguar and Lexus. Let’s take a look at some of these new luxury cars.

A new study shows that the majority of potential Chinese luxury-car buyers believe that customization is important. In fact, they rank it higher than the driving performance, battery range capacity, or autonomous driving features. Moreover, sixty percent of prospective buyers would prefer customized service throughout the buying process. This trend could be the reason that China will be the world’s fastest growing luxury car market by 2031.

The middle-luxury segment includes cars with a base MSRP of $36k to $60k. These vehicles are usually designed with high levels of comfort and technological innovations, but the customer is often more interested in performance. Therefore, many car manufacturers produce mid-range luxury cars with V8 engines or sophisticated 6-cylinder engines. In the United Kingdom, such cars are known as executive cars.

Luxury cars are often higher priced than conventional cars. They have more expensive parts and are often more powerful, ranging from V8s to V12s. They are also designed to provide the driver with a high level of comfort and pleasure. As a result, luxury cars can cost twice as much as entry-level Lexus sedans.

Convertibles are another popular option, and many luxury car companies have their own models in this segment. The S-Class convertible and the M8 Spyder are the leading convertibles on the market today. US automakers also have a stake in this segment, such as Tesla. There are also many smaller variants that can be purchased by less affluent shoppers.

Luxury car customer expectations are rapidly evolving. Many newer luxury OEMs have created a go-to-market strategy based on these changing customer experiences. For example, half of all premium consumers prefer to buy their next car online, while 60 percent are interested in contactless sales. Moreover, they are looking for a seamless experience, including personalized service and omnichannel reach.

Luxury vehicles offer greater comfort and convenience, as well as more safety and technology features than mass-market cars. Traditionally, luxury cars were known as Mercedes-Benz, BMW, and Audi, but now, mainstream brands are offering their own luxurious models. But there are several challenges ahead. The incumbent brands need to overcome legacy retail challenges and improve the customer experience.