While most car sales are booming, hyper-luxury is a segment taking the lead.
The pandemic has completely reshaped the automotive market, and some of the trends have surprised us, some not so much. While we never thought people would be dropping so much money on cars back in March 2020 when lockdowns started, that’s exactly what’s happened. So it’s really no surprise that those already comfortable dropping even more money, pushing the ultra luxury market even higher.
Ultra-luxury brands like Rolls-Royce and Bentley have been pushing the brand that’s resulted in $1.8 trillion changing hands and a 60-percent gain during the pandemic. The industry actually saw a 10-percent slump in 2019, but quickly recovered by the end of 2020, with the luxury car market being a a driver with the prices of cars spiking. It’s predicted that the growth is nowhere near a slow down with an expectation of 7 million cars being sold by 2024 and a projected $6.9 billion revenue in the segment by the end of this year. China is buying up a lot of supercars, being a main part of the sales, this is due to the economic boom in China, and people cashing in on that.
The luxury car market hasn’t been untouched by production difficulties, with Bentley shutting down for a few weeks, while also reporting the highest demand since 2003. Bugatti is already a brand with limited production and they just recorded their third consecutive recording breaking year.
Another notable trend in the market is the buyer. Thanks to the tech boom, the average age of an ultra-luxury car owner is down.