The auto industry has had some severe ups and downs over the last half decade, but a surprising segment has been reliably growing. That segment is luxury vehicles, and they are heading in a shocking trend that may enable them to be the largest portion of motor vehicle sales in only a few more years. There are many factors that have contributed to the changes, but a consistent player comes to the fact that luxury companies are pushing most of the major innovations on the road. Tesla is leaving competitors in the dust in terms of self-drive operations, and most modern safety features and assisted driving tools made their debuts in the luxury market. As advances become more attainable, consumers will keep shifting to this market. Keeping that in mind, it’s worth taking a look at who is winning among luxury manufacturers today.
Sedan sales have long been dominated by BMW. They were key to the company leading overall sales last year, and the newest 7-Series that hit markets this quarter has single-handedly restructured figures and predictions for the year. The new model has seen sedan sales growth of 219 percent over last quarter, and it has a slim chance of enabling BMW to come out on top for a second year in a row. Despite those impressive numbers, BMW is nowhere near the top of sedan sales this year.
That title belongs to Tesla, as its Model S has outsold the next three most popular models, combined. The Model S has made it clear that there is sharp and growing demand for electric models, and things are likely to change even more towards Tesla’s favor. Many major cities, starting with a trend set by Seattle, are investing heavily in revamping their vehicle fleets with electric options. This will bolster Tesla sales and open the market for Tesla’s utility vehicles. This may be the young brand in the game, but it is a rising star.
Tesla still has a ways to go before it can claim to be the overall largest seller of luxury vehicles. Sedans are important, but they make up a minority of luxury sales in the big picture. To really understand brand dominance, you have to look at SUVs.
There have been a few positive results, but across the industry, luxury sedan sales are dropping. That is not the case for SUVs. They account for the bulk of overall sales, and they are the reason why BMW is unlikely to retain its crown from last year. So far, the clear leader is Mercedes-Benz. They currently lead by roughly 10,000 units, and all of those numbers come from SUV sales. While Lexus and BMW have seen net losses compared to last year, the 47 percent increase in SUV sales has pushed the company-wide numbers to rise by 1.3 percent. This is particularly indicative of the overall market, because Mercedes-Benz sedan sales have plummeted even more than their rivals.
Taking this into account, there are some companies worthy of a close watch. Jaguar broke into the SUV game in the second half of this year when they released the F-PACE, and it has lifted the company’s numbers by 73 percent so far. Audi’s new Q7 has likewise produced positive changes to the tune of a 3.5 percent rise.
Tying it all together, Mercedes-Benz has a large lead that is unlikely to fall by the end of the year. While they are the overall leader, Tesla and BMW have revitalized the sedan market, and it just may fully recover over the next few years. Next year promises to be even more competitive, as some of the smaller players are seeing big numbers with new SUV lines. So, as you shop around for your BMW or Lexus insurance, be sure to pay attention to the big new things that will likely speak to a luxury vehicle owner such as yourself.
Courtesy TheTopTier Digital Media