KUALA LUMPUR, Malaysia, June 1, 2018 /CNW/ -- The rising power of consumption among Chinese, especially the younger generation who demands luxury products, is driving significant growth in luxury car market in China as a result of impactful megatrends such as social, economic and innovation.
The luxury car market in China is expected to undergo positive growth at compound annual growth rate (CAGR) of 5.4% from 2017 to 2025. Frost & Sullivan's recent report, China Luxury Car Market, Forecast to 2025 highlights that over 10% of 24 million units of passenger vehicles sold in China in 2017 were luxury cars.
"Compact SUV and C-Compact sedan are the most preferred luxury car segments in China. Increasing adoption by female and urban drivers, as well as the price conscious, will drive the demand for luxury cars from individual customers over the long term," said Ming Lin Chan, Senior Research Analyst of APAC Mobility Practice at Frost & Sullivan.
Shift in social trends increases the demand for luxury cars among female customers whom seek to position luxury brands as representation of their successful careers and positive outlook towards life.
Moreover, the Chinese population born between 1990s and 2000s are the key revenue generators for the future luxury car market as they are likely to pursue luxury cars to differentiate their social status.
To gain a competitive advantage in this growing market, companies should look into maximizing their promotion and advertising platforms in order to capture potential luxury customers. Customer experience is the key driver in accelerating luxury car sales.
"Luxury automotive brands are adopting cutting-edge technologies such as augmented reality and holographic projections to ensure high brand engagement," Chan added.
Frost & Sullivan predicts that luxury car companies such as Mercedes-Benz, Audi, and BMW are likely to enhance their market dominance and account for combined market share of over 60% in 2025. Companies are encouraged to examine trends in the global luxury car market to gain a competitive advantage.
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SOURCE Frost & Sullivan