A luxury car is a car that provides above-average to high-end levels of comfort, features, and equipment. Often, more expensive materials and surface finishes are used, and buyers expect better build quality. The usually higher pricing and more upscale appearance are often associated with the users' higher social status compared to low- and mid-market segment cars.
The term is relative and partially subjective, reflecting both objective qualities of a car, as well as the projected and perceived image of the vehicle marque. [1] Luxury brands rank above premium brands, though there is no clear distinction between the two. [2]
Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were produced. "Compact" luxury vehicles such as hatchbacks and off-road capable sport utility vehicles are more recent expansions of luxury qualities in various cars. [1]
Increasing comfort features, materials quality, interior space, innovations, and or performance have consistently been competitive strategies between car makers practically throughout the history of the automobile.
Several car classification schemes include a luxury category, such as:
Luxury cars have traditionally emphasized higher levels of comfort and safety. [14] Manufacturers often introduce new safety technologies and comfort amenities on luxury models before they are available on more affordable models. [15] Some brands, like Audi and BMW have expanded their marketing by "introducing lesser priced and strip-down economy versions of their products." [16]
Luxury vehicles can be a status symbol for conspicuous consumption. [17] However, since many European luxury car buyers shy away from conspicuous consumption, brands offer buyers the option of removing exterior badges that identify the model name or engine size. [18]
The suspension system of most luxury cars is tuned to prioritize ride quality over handling, however, some are marketed as "sports luxury" and have a greater emphasis on handling characteristics. [19] [20]
Traditionally, luxury cars have used a front-engine, rear-wheel drive (FR) layout. The FR layout is more expensive to produce and produces lower fuel economy than a front-wheel drive layout; however, it allows for larger engines (particularly straight-six, V8, and V12) to be used. [18] [21] [22] [23]
Some American luxury cars during the 1970s through the 1990s switched to a front-wheel drive layout with transverse engine, due to the Arab Oil Embargo of 1973 and the 1979 fuel crises which eliminated many FR platforms in favor of the more economical front-wheel drive (FF) layout. [24] From the early 2000s, several of these American luxury cars reverted to FR layouts. [25] [26] [27] [28]
Since the introduction of the Bentley Continental GT in 2003, additional luxury grand tourers feature all-wheel drive. [29]
Prior to World War II, a wide array of European producers made luxury cars, including Rolls-Royce, Bugatti, Delage, Delahaye, Talbot-Lago, Bentley, Alvis, Avions Voisin, Isotta Fraschini, Horch, Simson, Stoewer, Maybach, Mercedes-Benz, Hispano Suiza, Daimler Company, and Spyker. [30] [31]
France was a leading producer of powerful luxury automobiles before World War II. [32] After World War II, the French government used puissance fiscale tax regulations to encourage manufacturers to build cars with small engines, and French motorists to buy them. [32] The Maserati-powered Citroën SM and the Citroën C6 were arguably the last domestic French luxury cars. [33] [34] In the 2010s, some French manufacturers have attempted to develop luxury cars, however the lack of a historical legacy has hindered these efforts. [35] In 2014, Citroën introduced DS Automobiles sub-brand to market luxury cars. [36] [37]
Pre World War II intermediate car manufacturers like Renault, Fiat, Opel, Lancia, Škoda, Riley, Praga, Peugeot, Hillman and Tatra made luxury cars but were forced to make economy cars and superminis post World War II. Following World War II, Germany rose to become an export powerhouse, building on success with the Mercedes-Benz brand, later joined by BMW, which acquired Rolls-Royce Motor Cars in 1998, as well as Volkswagen which much later controlled or acquired additional brands such as Audi, Porsche, Bentley, Lamborghini, and Bugatti brands. [38] [39]
In the Soviet Union, the manufacturer ZiL (then called Zis) began producing representational limousines in the mid-1930s. In the early 1950s, GAZ joined with the somewhat smaller "Chaika" model range. In 2018, Aurus Motors was established to produce luxury vehicles for the Russian market.
The luxury car phenomenon began at the start of the automobile industry when the wealthy frequently invested in manufacturing such models to gain social prestige. [40] Emphasis was also placed on custom-built coachwork. [41] The 1920s and 1930s were the apogee of production of these very large luxury automobiles from many manufacturers. The significant North American manufacturers from 1910 until 1940 included Auburn, Buick, Cadillac, Chrysler, Continental, Cord, Daniels, DeSoto, Duesenberg, Franklin, Imperial, LaFayette, LaSalle, Lincoln, Marmon, Packard, Peerless, Pierce Arrow, Ruxton, Stearns-Knight, and Stutz. The Great Depression put many luxury car manufacturers out of business; others would hold on before going defunct during the postwar era.[ citation needed ] [42] [43]
From 1946 until the late 1990s, Cadillac was the top-selling brand of luxury cars in the U.S., while Lincoln was second. [44] The most successful and long-running model names during this era were the Cadillac DeVille, Lincoln Continental, and the Chrysler Imperial. The Lincoln Mark Series and Cadillac Eldorado were positioned in the personal luxury category, and competition between them continued into the 1990s. [45]
The personal luxury car emerged into mass popularity and affordability as an America-specific category of popularly-priced cars made from the 1950s by the four domestic manufacturers (GM, Ford, Chrysler, and AMC) that reached peak popularity in the 1970s. [46] The cars were stylized, mass-produced two-door coupés or convertibles, relying on standard components. [47] These distinctively styled cars were targeting the needs of individual customers, not an entire family. [48] The longest running model lines were the 1958-1997 Ford Thunderbird, 1956-1998 Lincoln Mark Series, and the 1967-2002 Cadillac Eldorado.
In 1990, American luxury brands dominated, with Cadillac selling over a quarter-million cars, and Lincoln had its best year ever at 231,660 units. [49] However, the market was changing with an ever greater acceptance of smaller, more efficient imported luxury brands while at the same time, the domestic manufacturers were downsizing their models with product decisions that backfired on quality and brand respect. [49]
Since the late 1990s, Japanese and German brands have sold the most luxury-type cars in the United States. However, the Cadillac Escalade has led the luxury SUV segment sales in the United States since its introduction in 1998, with the highest sales for 15 out of its first 20 years on the market. [50] [51]
In the 2000s, both Ford and General Motors produced luxury pickups: 2002-2013 Cadillac Escalade EXT, 2002-2003 Lincoln Blackwood, and 2006-2014 Lincoln Mark LT. In the late 2000s, the Cadillac CTS and Cadillac DTS led to a resurgence in the brand's luxury sedans. [52] The equivalent sedan from the Ford group, the 2008 Lincoln MKS, was also regarded as a significant improvement over previous models. [53] In 2010, BMW was the best-selling luxury vehicle manufacturer by sales, with Audi and Mercedes-Benz the second and third highest selling luxury brands. [54]
Chinese manufacturer Hongqi was launched in 1958, making it the oldest Chinese luxury car marque. [55] Later newcomers joined taking advantage of the rise of electric powertrains, with NEV brands such as Nio in 2014, Lynk & Co in 2016, HiPhi in 2019, and Zeekr in 2021 producing luxury electric and hybrid vehicles.
Japanese manufacturers have been producing luxury cars since the 1950s, including the Toyota Crown (1955–present), [56] [57] Prince/Nissan Gloria (1959–2004), Nissan Cedric (1960–2015), Mitsubishi Debonair (1964–1998), Nissan President (1965–2010), Toyota Century (1967–present), Mazda Luce/929 (1969–1991), and Honda Legend (1985–2021). [58]
Since the 1980s, overseas sales of Japanese luxury cars have increased, challenging traditional European luxury brands. [59]
Several East Asian manufacturers have created sub-brands for the marketing of luxury cars. The first of these was the 1986 launch of Acura (a Honda sub-brand), followed by Lexus (Toyota) in 1989, Infiniti (Nissan) in 1989, and Genesis (Hyundai) in 2015. [59]
The time of the 2007–2008 financial crisis and the Great Recession was the first time since the Great Depression that the luxury car market suffered considerably, something not seen in previous economic downturns. Many such customers saw their net worth decline during this time. [17] [60] For example, some of the steepest drop-offs came at the high end, including the BMW 7 Series and Rolls-Royce Phantom, and in 2010 Mercedes-Benz dropped the price of the W212 E-Class. The unusually sharp decline in luxury car sales has led observers to believe that there is a fundamental shift and reshaping of the luxury automotive market, with one industry official suggesting that the marques no longer command the premiums that they used to and another saying that conspicuous consumption was no longer attractive in poor economic conditions. [59] Additionally, mainstream brands have been able to offer amenities and devices such as leather, wood, and anti-lock brakes, previously found only on luxury cars, as the costs decline. [59]
However, luxury vehicle sales remained relatively high compared to their non-luxury counterparts. [61] [62] This was aided by growing interest in luxury vehicles from emerging markets such as China and Russia. [59]
Sales in the entry-level luxury segment remained strong throughout the GFC, due to prices being lowered to compete with well-equipped non-luxury cars. [63] [64] For example, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to discounted pricing on entry-level luxury vehicles. [65] [66]
Some auto manufacturers market their luxury models using the same marque as the rest of their line. Others have created a separate marque (e.g. Lexus, launched by Toyota in 1989) [72] or purchased one (e.g. Bentley, by Volkswagen in 1998). [73] [74]
Occasionally, a luxury car is initially sold under a mainstream marque and is later rebranded under a specific luxury marque (for example, the Hyundai's Genesis to Genesis G80 as well as the Citroën DS to DS 5). [75] [76]
For mass-produced luxury cars, sharing of platforms or components with other models is common, [77] as per modern automotive industry practice.
A compact executive car or a compact luxury car is a premium car larger than a premium compact and smaller than an executive car. In European classification, compact executive cars are part of the D-segment. In North American terms, close equivalents are "compact premium car", "compact luxury car", [97] "entry-level luxury car" and "near-luxury car". [98] Compact executive cars are usually based on the platform of a mid-size car (also known as large family car or D-segment), while some models may be based on a compact car (also known as small family car or C-segment).
Executive car is a British term for an automobile larger than a large family car. In official use, the term is adopted by Euro NCAP, a European organization founded to test for car safety. It is a passenger car classification defined by the European Commission.
The next category of luxury cars is known in Great Britain as a "luxury saloon" or "luxury limousine," [99] [100] [101] [102] and is known in the United States as a full-size luxury sedan, large luxury sedan, or flagship sedan. [103] [104] [105] [106] It is the equivalent of the European F-segment and the German Oberklasse segment.
Many of these luxury saloons are the flagship for the marque and include the newest automotive technology. [107] Several models are available in long-wheelbase versions, which provide additional rear legroom and may have a higher level of standard features. [108]
Examples of luxury saloons / full-size luxury sedans include the BMW 7 Series, [109] Jaguar XJ, Cadillac CT6, [110] [111] Genesis G90, [110] Audi A8, [112] Mercedes-Benz S-Class, [109] Lexus LS, [110] Hongqi H9, Porsche Panamera and Maserati Quattroporte. [109]
Luxury cars costing over US$100,000 (as of 2007) can be considered as "ultra-luxury cars". [113] Examples include the Rolls-Royce Phantom, Maybach 57 and 62, Hongqi L5, Bentley Mulsanne, Cadillac Celestiq, Toyota Century, and Aurus Senat. [113] [114] [115] High-end sports cars which are targeted towards performance rather than luxury are not usually classified as ultra-luxury cars, even when their cost is greater than US$100,000. [113] The history of a brand and the exclusivity of a particular model can result in price premiums compared to luxury cars with similar features from less prestigious manufacturers. [116] Ultra-luxury cars are usually selected as the official state car. [117]
Grand tourers are essentially high-performance luxury vehicles. These vehicles are generally two-door coupes and are made for long-distance driving, combined with the luxury of an executive car or full-size luxury car. [118]
Long before the luxury SUV segment was defined and became popular, the 1966 Jeep Super Wagoneer was marketed at the time as a fully-equipped station wagon. [119] [120] [121] [122] : 3 It was the first off-road SUV to offer a V8 engine and automatic transmission along with luxury car trim and equipment. [123] Standard features included bucket seating, a center console, air conditioning, a seven-position tilt steering wheel, a vinyl roof, and gold-colored trim panels on the body sides and tailgate. [122] : 3 By the late 1970s, optional equipment included an electric sunroof. [122] : 4 The 1978 Jeep Wagoneer Limited was the spiritual successor to the Super Wagoneer and was the first four-wheel drive car to use leather upholstery. [122] : 5
The Range Rover was released in 1970 as a two-door vehicle for off-road durability with few "creature comforts." [124] A four-door version was added in 1981, and the model was pushed upmarket in 1983 by introducing an automatic transmission (Chrysler's A727 TorqueFlite) as an option. [125] The Range Rover had a long-travel coil-spring suspension and an aluminium V8 engine. [126]
In the mid-1990s, the SUV market expanded with new entrants. By the mid-1990s, the entry-level Ford Explorer and upscale Jeep Grand Cherokee were the market leaders for SUVs. [127] The fastest-growing sector of this market was for the so-called luxury SUVs, which included the Jeep Grand Cherokee ... the Grand Cherokee's allure: "This vehicle is proof you can have a true off-road vehicle without giving up luxuries and amenities" with the Jeep providing a crucial new intangible factor for buyers—image. [128]
The SUV models generated higher profit margins than passenger cars, and car manufacturers began introducing new luxury SUVs during the late 1990s. [129] SUVs such as the 1995 Lexus LX, 1997 Mercedes-Benz M-Class, and 1998 Lincoln Navigator were the first SUVs produced by these luxury car brands. Some of these early luxury SUV models used unibody construction, becoming part of the trend moving away from the body-on-frame construction traditionally used by off-road vehicles.
During the mid-2000s, SUVs from luxury car brands grew by almost 40% in the United States to more than 430,000 vehicles (excluding SUV-only brands like Hummer and Land Rover), at a time when luxury car sales suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30% of major luxury brands' U.S. sales were SUVs. Crossover SUVs became increasingly popular in the mid-2000s, and manufacturers also began to produce luxury versions of crossovers. The Lexus RX was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US. [130] Some luxury crossovers are built on a platform shared with sedans or hatchbacks. For example, the Infiniti FX is based upon the same platform as the Infiniti G35 sedans and coupes. [131] While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, later crossovers, such as the Infiniti FX and BMW X6, have been designed with a sporting appearance. [132] [133] [134]
Despite the increased popularity of crossover models, traditional luxury SUVs remain in production. Examples include the Lexus LX, Infiniti QX80, and Lincoln Navigator. [135]
Research data from the mid-2000s suggested that luxury SUV buyers did not consider traditional luxury cars (e.g. sedans and coupes), therefore the SUV is becoming the key to bringing new customers into luxury dealerships. [136]
Luxury car companies have increasingly introduced SUV or crossover models in the 2010s. For example, Rolls-Royce Cullinan, Bentley Bentayga, Aston Martin DBX, Maserati Levante, Lamborghini Urus, and Ferrari Purosangue. Some brands, such as Lincoln, have even moved to an all SUV and/or crossover lineup.
Manufacturers such as Mercedes-Benz, Toyota, Lexus, Buick, Hongqi, Zeekr and Volvo have marketed upscale luxury MPVs as luxury vehicles, mainly marketed for Asian markets. Luxury MPVs generally have 3-rows of six or seven seats; however, range-topping flagship models may also offer a 2-rows option with four seats, which typically have more features than their cheaper counterparts. By the early 2020s, manufacturers have found additional strategies to improve technologies, such as new materials, new systems, and improving exteriors.
Examples of luxury MPV models include Mercedes-Benz V-Class, Lexus LM, Buick GL8, Hongqi HQ9, Toyota Alphard, Volvo EM90 and the Zeekr 009. [137] [138]
Lexus is the luxury vehicle division of the Japanese automaker Toyota Motor Corporation. The Lexus brand is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese global brands in market value. Lexus is headquartered in Nagoya, Japan. Operational centers are located in Brussels, Belgium, and Plano, Texas, United States.
Minivan is a car classification for vehicles designed to transport passengers in the rear seating row(s), with reconfigurable seats in two or three rows. The equivalent classification in Europe is MPV or M-segment - and are taller than a sedan car, hatchback, SUV or station wagon.
Infiniti is the luxury vehicle division of the Japanese automaker Nissan Motor Corporation. The brand began on November 8, 1989, initially in North America. The marketing network for Infiniti vehicles included dealers in over 50 countries in the 2010s. As of 2020, there were 25 markets served by new car dealers, primarily North America, China, Taiwan, and the Middle East.
Governments and private organizations have developed car classification schemes that are used for various purposes including regulation, description, and categorization of cars.
The Detroit Auto Show, formerly known as the North American International Auto Show (NAIAS), is an annual auto show held in Detroit, Michigan. Hosted at Huntington Place since 1965, it is among the largest auto shows in North America, and is widely regarded as one of the automotive industry's most important events.
In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand, a manufacturer creates a distinct automobile by applying a new "badge" or trademark to an existing product line.
The Lexus LS is a series of full-size luxury sedans that have served as the flagship model of Lexus, the luxury division of Toyota, since 1989. For the first four generations, all LS models featured V8 engines and were predominantly rear-wheel-drive. In the fourth generation, Lexus offered all-wheel-drive, hybrid, and long-wheelbase variants. The fifth generation changed to using a V6 engine with no V8 option, and only one length was offered.
Full-size car—also known as large car—is a vehicle size class which originated in the United States and is used for cars larger than mid-size cars. It is the largest size class for cars. In the United Kingdom, this class is referred to as the executive car, while in Europe, it is known as E-segment or F-segment.
Body-on-frame is a traditional motor vehicle construction method whereby a separate body or coach is mounted on a strong and relatively rigid vehicle frame or chassis that carries the powertrain and to which the wheels and their suspension, brakes, and steering are mounted. Whereas this was the original method of building automobiles, body-on-frame construction is now used mainly for pickup trucks, large SUVs, and heavy trucks.
The Los Angeles Auto Show, also known as the LA Auto Show, is an auto show held annually at the Los Angeles Convention Center in Los Angeles, California, United States. It is open to the public for ten days, filling 760,000 square feet (71,000 m2) of exhibit space. Since 2006 the event is held in November or December.
Since 2009, the United States is home to the second largest passenger vehicle market of any country in the world, second to China. Overall, there were an estimated 263.6 million registered vehicles in the United States in 2015, most of which were passenger vehicles. This number, along with the average age of vehicles, has increased steadily since 1960. The United States is also home to three large vehicle manufacturers: General Motors, Ford Motor Company, and Chrysler, which have historically been referred to as the "Big Three".
In the United States automotive industry, the term Big Three is used for the country's three largest motor vehicle manufacturers, especially indicating companies that sell under multiple brand names.
A compact executive car, also known as a compact luxury car, is a premium car larger than a premium compact and smaller than an executive car. Compact executive car is a UK term and a part of the D-segment in the European car classification.
The D-segment is the 4th category of the European segments for passenger cars, and is described as "large cars".
An official state car is an automobile used by a government to transport its head of state or head of government in an official capacity, which may also be used occasionally to transport other members of the government or visiting dignitaries from other countries. A few countries bring their own official state car for state visits to other countries, for instance, the United States, Russia, the United Kingdom, South Korea, Germany and Japan. It also may serve as an automotive symbol of the head of state and their country. An official state car must have adequate security, capability and stateliness for its duty. A limousine or other high-end vehicle is usually selected.
The F-segment is the 6th category and largest of the European segments for passenger cars, and always belongs to "luxury cars".
The Lexus RX is a luxury crossover SUV sold since 1998 by Lexus, a luxury division of Toyota. Originally released in its home market of Japan in late 1997 as the Toyota Harrier, export sales began in March 1998 as the Lexus RX.
The Lexus NX is a compact luxury crossover SUV sold by Lexus, a luxury division of Toyota. Introduced in late 2014, it is positioned between the subcompact UX and the mid-size RX in Lexus’ crossover SUV lineup.
The automotive industry in the Philippines is one of the largest in the Asia-Pacific region, with approximately 441.4 thousand vehicles sold in 2023. Most of the vehicles sold and built in the Philippines are from foreign brands. For the most part, the Philippines is dominated by Japanese automobile manufacturers like most of its ASEAN neighbors. The automobile production in the country is covered under the Philippine Motor Vehicle Development Program implemented by the Board of Investments. In addition, there are also a small number of independent firms who assemble and fabricate jeepneys and other similar vehicles, using surplus engines and drivetrain parts mostly from Japan.
A coupe SUV is a type of sport utility vehicle with a sloping rear roofline similar to those of fastbacks or Kammbacks. The sloping roofline is adopted to offer a styling advantage compared to its standard SUV counterpart, which helps increase profit margins as manufacturers are able to raise the price by marketing it as a more premium model. Since all coupe SUVs ever produced are of the crossover variety, coupe SUVs may also be called "coupe crossovers" or "coupe crossover SUVs".
Virtually all the smaller companies competed in the expensive or midpriced segments of the market. They were highly exposed to sharp drops in sales as demand fell away. They were slow to cut costs and introduce low-priced models. Apart from Chrysler, the small players either went out of business or lost so much market share that they could no longer compete effectively.
Many of the smaller automakers folded during the 1930s, including Cord, Durant, Franklin, Peerless, Pierce-Arrow and Stutz. Others survived the Depression, but were so damaged they eventually went out of business, including Graham-Paige, Hudson, Nash, Packard, Studebaker and Willys-Overland.
Volvo Car Group (Volvo Cars) is owned by Zhejiang Geely Holding (Geely Holding) of China.
premium coachbuilt grand tourer ... handcrafted coupe