Future Trends in Luxury Car Marketing and Sales

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Future Trends in Luxury Car Marketing and Sales

Four trends that will impact sales and marketing in the luxury car market in the next three to five years are the movement toward electric luxury vehicles, growing demand from developing countries, self-driving luxury cars and luxury vans and buses.

ELECTRIC LUXURY VEHICLES

DEMAND FROM DEVELOPING COUNTRIES

  • Market researchers WiseGuyReports and Mordor Intelligence report that growing demand from developing countries will increasingly drive luxury car marketing and sales globally from today through 2025.
  • Specifically, developing countries, such as India, as well as other Asia-Pacific nations are expected to experience "moderately fast growth," and thereby increase the market for luxury car sales worldwide.
  • Notably, Mercedes and BMW are currently leaders in the sale of luxury vehicles in developing markets, such as India, and are expected to continue leading this market change.
  • For example, Mercedes India reported a 16% growth in luxury sedan sales in 2017 compared to its previous year, with the company's C-Class and E-class vehicles representing the greatest percentage of sales.

SELF DRIVING LUXURY VEHICLES

  • According to market researcher, Mordor Intelligence, and automotive trade, Automotive Network, the development of next-generation smart mobility technologies, including autonomous driving, are expected to be a significant trend worldwide in the marketing and sales of luxury cars from today through 2024.
  • Specifically, features such as self driving technology are expected to increase sales of luxury vehicles more generally, as well as further accelerate sales of electric luxury cars that also have such features.
  • Meanwhile, according Automotive Network, Tesla and Cadillac are at the forefront of this trend, with Tesla in particular leading the change by incorporating self-driving capability in all vehicles produced within the company's factories.

LUXURY VANS AND BUSES

  • Market researchers Technavio and Coherent Market Insights suggests that luxury vans and buses represent a growing trend in the marketing and sales of luxury vehicles worldwide from today through 2023.
  • Specifically, growing demand for luxury vans and buses is expected to create new growth and sales in the luxury vehicle market, at least through 2023, stimulate the introduction of new luxury van and bus models and lead to upgrades of existing successful van and bus models.
  • This increase in demand for luxury vans and buses is primarily driven by fleet operators such as VIP or limo services, as well as companies looking to increase market penetration for bus line services.
  • Meanwhile, according to Coherent Market Insights, Volkswagen, Daimler, and General Motors remain and are expected to continue as leaders of this change and growing market segment.

RESEARCH STRATEGY

Please note, for the purpose of this analysis, trends that will impact luxury car marketing and sales in the next three to five years have been defined those trends or drivers that have been identified by multiple credible sources as a major trend or driver, and which are forecast to influence luxury vehicle sales anytime during the next three to five year period.
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Luxury Car Marketing: Case Studies

Luxury car companies successfully use digital marketing in various ways. Mercedes-Benz, for example, has found success with influencer marketing strategies via Instagram. Their #MBPhotoPass campaign loaned vehicles to popular Instagram users, which resulted in 173 million impressions, 2.3 million likes, and $4 million worth of earned media for Mercedes-Benz. Audi, another luxury car company, has found success with a digital marketing strategy using celebrities through Reddit and YouTube. Their "Think Faster" campaign let Reddit users have their questions answered by well-known celebrities via a YouTube stream from the inside of a moving Audi. The campaign's first two episodes earned 35.7 million impressions and 1.33 million views per episode.

Mercedes Benz

  • Mercedes-Benz is a luxury car division of Daimler.
  • Mercedes-Benz launched the #MBPhotoPass campaign via Instagram.
  • #MBPhotoPass was a marketing campaign using "influencers".
  • Mercedes loaned vehicles to popular Instagram users and had them Instagram themselves with a Mercedes-Benz under the hashtag: #MBPhotoPass.
  • The campaign resulted in 173 million impressions, 2.3 million likes, $4 million worth of earned media, and 1,700 brand assets for Mercedes-Benz.

Audi

  • Audi is a luxury car company under the Volskwagen Group.
  • Audi launched its “Think Faster” campaign via Reddit and YouTube.
  • In the “Think Faster” campaign celebrities participate in a live video Q&A filmed inside a moving Audi and streamed from YouTube to Reddit.
  • The first two episodes of this campaign from Audi earned 35.7 million impressions and 1.33 million views per episode.
  • The following two episodes increased to 50.3 million impressions and 2 million views.

Research Strategy

To produce this research, an initial inquiry was done to clarify which brands are considered luxury car brands. Then, further analysis on the social media campaigns of these companies exposed the companies with the strongest digital marketing presence. These companies were additionally investigated through their social media channels, news articles, websites, and other public releases to identify specific case studies about their digital marketing strategy.

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Sources