Luxury SUV Market Analysis

Luxury SUV Market Analysis

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The luxury SUV market from hybrid/electric segment was reached USD 1 billion revenue in 2022. Rising environmental concerns pertaining to increasing exhaust emissions are prompting governments to enact stricter environmental regulations. Governments are also increasing incentives & subsidies for EV owners, further fueling the demand for environmental-friendly & sustainable transportation. With the developing electric vehicle technology, hybrid electric powertrains are also being added to vehicles with internal combustion engines to improve fuel efficiency. Such elements are expected to present opportunities for market expansion. Market vendors are concentrating their efforts on developing internal combustion engines with high-speed & high-performance characteristics to achieve the highest level of customer satisfaction while minimizing their negative environmental impacts.
 

The franchised dealer segment held over 76% of luxury SUV market share in 2022 and is set to witness 12% CAGR through 2032, led by offering an exclusive distribution network, expertise in product knowledge, a luxurious brand experience, test drives & demonstrations, financing & after-sales services, customer relationship management, and exclusive promotions & events. The dealership network serves as a crucial touchpoint between luxury SUV brands and customers, providing personalized service, fostering brand loyalty, and creating an immersive buying experience that resonates with the target market.
 

Asia Pacific luxury SUV market accounted for 44% revenue share in 2022, attributed to the presence of numerous large-scale businesses. The ever-increasing population in countries including China and India is benefiting luxury SUV manufacturers in Asia Pacific. The China market is demonstrating one of the highest growth potentials in Asia Pacific. The increasing number of production facilities in the region is credited to the low costs and tax benefits associated with the assembly & sale processes provided by many Asia Pacific countries. These factors have led to growth in the APAC market for luxury SUVs with manufacturers catering to the demand by introducing a wide range of luxury SUV models that are tailored to the preferences of discerning consumers.