Fresh evidence from the luxury auto industry shows that well-known brands are finding fewer buyers. With BMW’s sales down by 2.8 percent, according to the New York Times, the auto industry’s strategy of ushering in new models to attract more buyers is not working.
BMW’s 3 and 4 car sales plunged over 20 percent in 2016 and fell another 8 percent in the early part of 2017. Mercedes, to a lesser extent, is experiencing the same. Jaguar Land Rover also saw a 2.3 percent drop in April due to a considerable fall in demand from overseas markets. Should carmakers be worried?
Something to Look Forward to
While luxury automakers are experiencing a slump in sales, analysts say there is something to look forward to and it has something to do with luxury electric cars.
A market analysis done by Experian Automotive found that electric car buyers are younger and richer than those who opt for hybrids. While this isn’t just about the luxury electric vehicle market, it is an interesting study that gives car enthusiasts a glimpse of the future. It is also significant to note that there are only a few luxury EVs that are almost ready for the road.
As climate change concerns soar, more people, especially the younger generation, are now more aware of their carbon footprint. In fact, according to Experian Automotive, rich environmentalists are now opting for luxury EVs. There is a growing demand for high-end electric cars and luxury automakers are getting ready for this surge.
In March of 2017, Jaguar’s much anticipated I-PACE was seen on London’s streets. The EV, which will arrive in the US in 2018, is described as “a striking preview” of Jaguar’s electric vehicles. Audi and Mercedes-Benz will be launching their electric vehicles in 2018 while BMW’s newest EV will follow in 2020.