COVID-19: The market for luxury cars does not follow the same trends
Posted by Lorène Fauvelle on 11 Sep, 2020
COVID-19: The market for luxury cars does not follow the same trends
Update: 13th October 2020. The market for automobiles has been affected by the COVID crisis, as have many other sectors. While annual sales are down for many manufacturers and dealerships, what about Luxury cars? If you only have 30 seconds The European (or even world) automobile market should fall by around 25% in 2020 compared to the previous year (ACEA). This decline is the strongest ever recorded on the European automobile market. While the world automobile market has been slowing down since 2019, the players in the luxury car sector do not seem to be affected (Lamborghini: +43%, Rolls-Royce: +25%, Porsche: +10%). Manufacturers considered as premium (Mercedes, BMW, Audi for the German brands) see their figures fall in 2020 everywhere in the world, except in China where their sales are on the rise compared to 2019. Summary The world automobile market before the crisis The outlook for luxury cars in 2020 What was the world automobile market like before the COVID crisis? Faced with constantly changing standards and tax incentives, which we detailed in a previous article, brands must, however, take steps and adapt to comply with new requirements, particularly European ones. 2018 sounded the downfall of the actions of the automobile equipment manufacturers, with its impact on the constructors. 2019, however, unfolded under better auspices. But this does not (or hardly) concern the brands of luxury cars. What do we define when we use the term “luxury cars”? The major brands of luxury cars are well known: Rolls Royce, Ferrari, Lamborghini, Bentley, and so on. These luxury vehicles are distinguished by their design, their options, but also by the number of examples put on the market. In short, it is the price and exclusivity that make them luxury vehicles and brands. In 2019, the famous English brand, Bentley achieved almost as many sales in Monaco as in its four concessions located in Paris, Lyon, Bordeaux and Cannes. Culture, the absence of a national manufacturer, taxes and social movements, notably the yellow jackets, are called into question: luxury cars don’t seem to be the French people’s cup of tea. It should be noted, however, that the sales volume is on the rise for the majority of luxury car brands in France. Brand Number of units sold in France in 2019 Evolution compared to 2018 Porsche 5 572 +22%...
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