Valuable brands
Providers of high-end vehicles are currently springing up everywhere like mushrooms. Whether Rivian, Fisker or Polestar, the list of manufacturers offering exquisite, luxuriously equipped and also electrified cars for well-heeled clients is getting ever longer. However, the “old hands” such as Ferrari, Porsche and even premium supplier Mercedes-Benz, whose portfolio contains a luxury brand more than 100 years old in the form of the Maybach, are not giving up without a fight. While they may still be catching up in terms of the engine of the future, the reputation of these traditional providers for premium quality goes well before them. They also have brands that are not only known across the world, but also particularly valuable. The brand value of Mercedes-Benz, for instance, has risen by a tenth to USDbn 56 in the last year, putting the Germans in eighth position on the international rankings. That keeps the “three-pointed star” in first place for the seventh year in a row as the only European brand and only luxury brand of the car sector in the top ten of the 100 best global brands.
Luxury in demand
Demand for prestige models is currently much higher than for mass-market versions. According to estimates by the Center for Automotive Research, 3.1% more cars will be sold worldwide in 2023, which would be the first rise since 2019. In 2024 this figure could then climb to around 4%. To compare, Porsche managed to sell some 15% more sports cars in the first half of 2023. In general, demand for luxury cars is accelerating. According to Grand View Research, from USDbn 617.36 in 2022 the global market for high-end vehicles is expected to surge at an annual growth rate of 6.9% until 2030 and crack the billion dollar mark by the end of the decade. In geographical terms, the Asia Pacific region is predicted to have the highest rates of increase in the forecast period at 8.2%.
Ambitious electric plans
Admittedly, the traditional manufacturers have been a long time getting round to electrifying luxury and sports cars, something which has also brought them plenty of criticism. Nevertheless, the car giants are now really putting their foot on the gas. “We took the decision in favour of electromobility a lot sooner than many competitors,” said Porsche boss Oliver Blume to Automobilwoche magazine recently. Putting figures on it, the CEO expects more than 80% of vehicles coming off the production line to be fully electric by as early as 2030. Among the contributors are to be the new generation of the Macan mid-class SUV, designed as an electric car and set to hit the roads in 2024, and the 718 model planned for the middle of the decade. Its direct competitor, Ferrari, does not intend to lag behind the Germans and has likewise published ambitious plans. Electric and hybrid vehicles are to be added to the Italians’ product range in the second half of the decade. To that end Ferrari is building a new production facility in the Italian town of Maranello which is to go into operation next year.
Advanced campaign
In terms of the number of electric models, Mercedes-Benz is already well in front. The electric campaign of the Stuttgart-based company goes by the abbreviation EQ. That the already broad fleet is being well-received on the market is demonstrated by the latest sales figures, with sales of battery-powered cars shooting up 89% in the first quarter to reach 51,600 units. The share of electric cars in the group now stands at around a tenth, which compares with just 6% in the same quarter last year. Mercedes has been giving plenty of thought to ensuring that the graph continues to head upwards. In April, for instance, the first fully electric Mercedes-Maybach EQS SUV celebrated its world première.
Development of the global luxury car market
Source: Grand View Research