Five trends shaping tomorrow’s luxury-car market
Skip to main content !Ask McKinsey chat bubbles !Ask McKinsey AI Chatbot !Ask McKinsey Close icon Five trends shaping tomorrow’s luxury-car market Share Print Download Save # Five trends shaping tomorrow’s luxury-car market July 8, 2022 \| Article By Mingyu Guan, Jan-Christoph Köstring, Simon Middleton, and Timo Möller Share Print Download Save Luxury-car sales continue to surpass the mass market in terms of growth, profitability, and buzz. SoundCloud Widget ### DOWNLOADS Article (14 pages) Luxury-vehicle brands stand apart. Where the mainstream market has largely stagnated, with little to no growth expected through 2031, the luxury segments should gain share during the same period, with growth rates ranging from 8 to 14 percent annually.
What’s more, margins in the luxury segment ranged in the double digits from 2016 to 2021, while the mass market remained in the low single digits during the same period. ## Cultivating a separate market The luxury market is where the action currently is in the automotive world. In addition to traditional comfort, convenience, entertainment, and safety features, luxury cars bristle with advanced connectivity elements, autonomous-driving options, and the latest powertrain electrification technologies. They also have some of the strongest brands in the industry. Share Sidebar ## Methodology When plotting luxury-vehicle volumes and electrification rates, McKinsey used two growth scenarios.
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- Where the mainstream market has largely stagnated, with little to no growth expected through 2031, the luxury segments s
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