Luxury seems recession proof when it comes to cars
For many people, budgets may still be tight, but luxury car sales are going strong. Even in the middle of a world recession, it seems we want to hang on to luxury products and our cars are a number one priority in this field.
Figures show that Mercedes-Benz topped BMW and Audi in the second quarter of 2013, which seems to indicate that top of the range luxury is staging a comeback.
It could be the introduction of the new A-Class and B-Class ranges, which are comparatively small and compact, which is attracting more buyers to the luxury brand. With the addition of these smaller models, Mercedes saw a massive 12% increase in sales over 2012.
The race to be top
Introducing models that scream luxury but are smaller and more economical seems to be the key to the increase in sales. More people want smaller cars and manufacturers are reacting to that. Each of the big three luxury brands, Mercedes, Audi and BMW, is competing fiercely for this market with the aim of achieving the highest sales figures.
We love luxury
Even through the slow recovery from a recession, people just love luxury, particularly when it can be felt on the open road. With jobs harder to find, people are spending longer commuting, which makes it even more important to be comfy whilst driving. Moreover, most people want to be particularly sure the vehicles they are driving will not cause them any major problems (even though all luxury cars are definitely not perfect) and will be as reliable as possible.
It is, however, not only compact cars that are climbing in popularity. Sales of BMW’s XI SUV showed a 15 per cent jump earlier in 2013, only a little behind the increase in sales for the smaller 3-series and the luxury compact C180 from Mercedes. People are becoming more interested in luxury vehicles as a way to enjoy the finer things in life whilst driving a family-friendly car.
Time on the Road
A large percentage of people spend an average of 25 minutes commuting every day and many spend much longer than that in their car. Just as consumers enjoy a comfortable couch for watching movies, they also demand a comfortable car to get them from A to B.
This is excellent news for luxury car brands and hybrid manufacturers alike. Luxury car makers may be missing out on a large part of the population, however, by not including as many eco-friendly vehicles in their selection. Consumers should not have to make a stark choice between luxury and saving money on fuel and a new raft of eco-luxury would be welcomed by the motoring public. Despite this current gap in the market, the demand for luxury is not deteriorating and demand will, without doubt, lead to more innovation in this area. Technology needs to solve the problem of bringing environmentally friendly and luxurious products together for today’s marketplace.