The US auto market is gradually shifting towards more expensive cars. Supply chain shortages and global shipping dilemmas have given automakers convenient reasons to focus on cars. better profit margin, and their plan is working. Luxury cars are going through a boom in the US that doesn’t look like it’s going to go bankrupt anytime soon.
Luxury brands like Audi, BMW car, Mercedes-Benz and even Tesla (seems to be a luxury brand now) is selling more cars in the US than ever before, because The Wall Street Journal report. Luxury auto sales are at a record high, accounting for 17.3% of total US auto sales in 2022.
Last year, luxury car sales accounted for 14.1% of total sales, but in the US – and the rest of the world – start to recover After recovering from the global pandemic, the luxury car market has not only recovered, but also broken records. And it’s not just luxury and high-end models that fly out a lot: supercar and exotics are also currently breaking sales records in the US.
Cars from Bentley, Ferrari and Lamborghiniwhich WSJ called superpremium models, which grew to 6,700 models sold in the first half of 2022. Sales increased 35.6% year-on-year in 2017. Though that market contrast is a bit outdated, after 5 years, it’s still growing. in a relatively stubborn segment.
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Selling econoboxes is different than selling supercars, is all. Just trade the instant coffee and cookies that dealers use to woo us mere mortals for, what, Caviar and Kopi luwak? I don’t know. I’m not rich. But more and more American car buyers sure are, and it’s this bigger pool of affluent Americans that’s behind the boom of luxury cars sales.
Last year, 2.48 million luxury cars were sold in the U.S., which represents a 13.2 percent jump over the year prior. Meanwhile, mass-market auto sales grew by only 1.7 percent in 2021. Market analysts at J.D. Power claim that luxury cars would have sold in bigger numbers last year, if it weren’t for supply constraints.
This is, presumably, part of the reason why automakers are inching towards higher brackets even with pedestrian models. The WSJ says the difference between a Kia Telluride and Lexus RX 350 was $6,875 in 2022 compared to $9,000 a few years ago, before the global pandemic.
The pandemic has driven the wedge deeper between well-heeled buyers and those who are less well-off. Spending $80-, $90- or $100,000 on a car is now becoming more common, according to our own Tom McParland. But whether it’s a new car, a used car, a luxury car or a supercar, what they all have in common is that they are more expensive; Superpremium cars are immune to price increases.
