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The luxury car market size in Australia is estimated to grow at a CAGR of 5.28% between 2022 and 2027. The luxury car market size in Australia is forecast to increase by 30,298.94 actual units. The growth of the market depends on several factors, including the integration of advanced technologies in luxury cars, a rising number of high-net-worth individuals, and an increasing preference for safety and comfort.
This luxury car market report in Australia extensively covers market segmentation by propulsion (IC engine based vehicles and electric vehicles) and vehicle type (SUV and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising number of high-net-worth individuals is notably driving the market growth, although the decline in the automotive industry due to the global semiconductor chip shortage may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising number of high-net-worth individuals is notably driving the Australian luxury car market growth. High Net Worth Individuals (HNWI) is a term used by financial institutions for individuals or families who have large cash and savings accounts with banks. These individuals make up the majority of luxury car sales. Therefore, an increase in the number of Australian HNWIs will lead to an increase in the number of luxury cars sold during the forecast period. HNWIs are defined as individuals with liquid assets of at least USD 1 million. Australia has always attracted many wealthy people. According to New World Wealth, over the last 20 years, it has had more than 80,000 wealthy people immigrate to the country.
Australia will continue to attract the largest number of HNWIs during the forecast period. Australia is a highly developed and prosperous country with high per capita incomes, a high quality of life, a first-class healthcare system, world-class educational institutions, economic independence, and stability. Australia has a developed economy, with particular strengths in the financial services, healthcare, and materials sectors, and a thriving technology industry. An increase in the country's HNWI population will, therefore, have a positive impact on the growth of the market during the forecast period.
The increasing technological updates in luxury cars to beat the competition is a key trend influencing the Australian luxury car market growth. Luxury cars are considered flagship models by automakers. As such, automakers are updating luxury car models with advanced technologies and features such as parking assistance. The Volvo XC90 is equipped with an advanced parking assist system with four hidden cameras that give the driver a 360-degree view of him both when parking and driving. The feed from the camera is controlled via the touch display. Drivers can choose angles and cameras to make informed parking decisions. The vehicle can also be semi-automatic to steer, stop, decelerate, and accelerate at less than 30 mph. The luxury SUV Audi Q7 is equipped with advanced driver assistance systems that automatically recognize emergencies, close the sunroof and windows, and apply the brakes to protect the vehicle. This vehicle's system helps the driver avoid a collision when reversing the vehicle. The vehicle's cruise control system allows the driver to autonomously maintain lanes and adjust speed according to highway traffic conditions.
The luxury Tesla Model X has an autopilot feature that allows you to steer the vehicle, change lanes, and even apply the brakes while driving. A front-facing camera identifies pedestrians and recognizes signs to warn drivers. Therefore, luxury car manufacturers are updating their products. Hence, increasing technological advancements in luxury vehicles will drive the growth of the market during the forecast period.
The decline in the automotive industry due to the global semiconductor chip shortage is challenging the Australian luxury car market growth. Chip shortages have hampered vehicle production by causing automakers to shut down production lines for short periods when supplies run out. For example, the entire automotive industry is in the midst of a severe parts shortage, forcing automakers to halt production and cut exports to Australia. Vendors like Toyota have also been hit hardest resulting in a slowdown in production in Australia. New car buyers in Australia are being urged to queue up and order early to avoid delays as data shows global semiconductor shortages will continue.
In addition, Russia's invasion of Ukraine has further degraded the operations of the semiconductor supply chain, as both countries are major semiconductor producers. However, this shortage is expected to end by the end of 2023. Therefore, the factors mentioned above are likely to hamper the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Luxury Car Market Customer Landscape in Australia
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aston Martin Lagonda Ltd: The company is involved in different types of activities associated with luxury vehicles such as design, development, manufacture, marketing, and sales.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the IC engine based vehicles segment will be significant during the forecast period. Diesel and petrol engines dominate the Australian Luxury Car Market. Growth in this segment has been attributed to rising consumer disposable income, resulting in increased acceptance of luxury vehicles in the country. Technological developments have also led to improvements in internal combustion engines in terms of emissions, performance, and fuel efficiency. This trend is also expected to boost the growth of this market segment over the forecast period.
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The IC engine based vehicles segment was valued at 78,960.22 actual units in 2017 and continued to grow until 2021. With the advent of electric vehicle technology, internal combustion engine-based vehicles are being integrated with hybrid electric powertrains to improve fuel efficiency. Such factors are expected to provide growth opportunities for the growth of the market. Market vendors are focused on developing internal combustion engines with high speed and high-performance characteristics to achieve optimal customer satisfaction and minimize negative environmental impact.
The luxury car market report in Australia forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the luxury car market in Australia as part of the global automotive market under the global automobiles and components industry. The parent market, the global automotive market, includes companies that manufacture vehicles such as passenger cars, commercial vehicles, and SUVs. Manufacturers of motorcycles, scooters, e-bikes, tricycles, and tricycles are not included.
Luxury Car Market Scope in Australia |
|
Report Coverage |
Details |
Page number |
134 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.28% |
Market growth 2023-2027 |
30,298.94 actual units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.55 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aston Martin Lagonda Ltd., Bayerische Motoren Werke AG, FCA Italy S.p.A, Ferrari spa, Ford Motor Co., GAZ International LLC, General Motors Co., Isuzu Motors Ltd., Mazda Motor Corp., McLaren Group Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., Porsche Automobil Holding SE, Renault SAS, SAIC Motor Corp. Ltd., Stellantis NV, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., and Hyundai Motor Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Propulsion
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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