29 December 2022
Consultancy group McKinsey has said the global luxury vehicle market is “rapidly transforming”. This was its main conclusion after carrying out a survey of high-net-worth consumers in the US, Europe, China, Japan, Singapore and the Middle East, writes Leatherbiz.
Image shows Bugatti Chiron interior. High-end interior design and materials are close to the top of purchasing criteria for buyers of luxury vehicles.
It questioned 350 buyers of luxury vehicles, which it defined for the purposes of the study as cars with a recommended retail price of at least $200,000.
McKinsey said six major insights had emerged from its conversations with participants.
It spoke to buyers of traditional internal combustion engine (ICE) cars as well as consumers who have already bought an electric vehicle (EV). It found that 44% of respondents with an ICE at the moment are ready to switch to pure EVs.
There is little brand loyalty among these consumers: 95% said they would be willing to switch brands for their next purchase.
Respondents were asked to list their top five purchasing criteria when buying a luxury vehicle and driving performance (acceleration and handling) came top of the list with 52% of buyers including it. This was closely followed, with 48%, by high-end interior design and materials.
Asked what luxury-brand car manufacturers should focus on when seeking to differentiate themselves, the top three factors to emerge were technical innovation, sustainability and “a luxury eco-system”.
Luxury vehicle customers want more than just a car: more than 35% of them said they would appreciate branded accessories to go with their vehicle purchase.
The study also concluded that many luxury vehicle customers prefer online channels for many aspects of choosing and maintaining their cars, which means manufacturers should work hard to have an “omnichannel sales approach”.