Asia-Pacific leads the global luxury car market as SUVs dominate, battery-electric vehicles gain traction, and personalized mobility drives consumer demand.
Hyderabad, Oct. 24, 2025 (GLOBE NEWSWIRE) — Hyderabad, October 2025 – According to Mordor Intelligence, the luxury car market is worth USD 567.65 billion in 2025 and is projected to reach USD 782.49 billion by 2030, registering a 6.63% CAGR. The market is being fueled by growing wealth in Asia-Pacific, the rise of electric flagship models, and a stronger focus on eco-friendly, personalized vehicles. Premium brands are staying ahead through digital services, customization, and direct sales, while competition from Tesla and Chinese upmarket players is pushing faster electrification and smarter retail strategies.
Regional Insights
The Asia-Pacific luxury car market leads the global landscape, supported by rising demand in China and India’s expanding premium segment. However, its performance remains sensitive to financial fluctuations, prompting global brands to adapt their local strategies.
The Middle East continues to show strong momentum, fuelled by higher incomes and large-scale infrastructure projects. North America remains a steady contributor, while Europe faces regulatory challenges but sustains growth through loyal customers and a growing focus on high-end electric SUVs.
Market Dynamics and Growth Drivers
Rising Focus on ADAS and Vehicle Safety Standards
Carmakers are elevating driver-assistance and safety systems to meet rising consumer and regulatory expectations. Models like the Cadillac LYRIQ now feature hands-free highway driving and advanced braking systems, while new European standards mandate technologies such as intelligent speed control and automatic emergency braking, setting a higher baseline for vehicle safety across markets.
Accelerating Electrification Across Premium Vehicle Segments
Electric vehicles are emerging as the key focus for premium automakers, who now view them as symbols of performance and sophistication rather than just compliance tools. While brands like Mercedes-Benz and BMW are expanding their electric lineups and charging networks, ultra-luxury manufacturers are taking a measured approach, refining drivetrains to maintain brand identity. The future of high-end mobility will depend on how well luxury makers blend electrification with their hallmark traits of craftsmanship, sound, and driving experience.
Growing Shift Toward Direct-to-Consumer and Online Retail
Luxury automakers are increasingly moving toward direct online sales, inspired by Tesla’s seamless factory-to-customer approach. Brands are embracing digital platforms with transparent pricing, virtual showrooms, and personalized delivery experiences. This shift allows manufacturers to strengthen customer relationships, streamline operations, and adapt to changing retail expectations in the luxury car market.
Segmentation Landscape
By Vehicle Type
- Hatchbacks
- Sedans
- Sports Utility Vehicles (SUVs)
- Multi-purpose Vehicles (MPVs)
- Sports / Exotic
By Drive Type
- Internal Combustion Engine (ICE)
- Hybrid Electric
- Battery Electric
By Vehicle Class
- Entry-level Luxury
- Mid-level Luxury
- Ultra-luxury / Exotic
By Sales Channel
- Authorized Dealership
- Direct-to-Consumer / Online
Overview of Major Companies
- Mercedes-Benz Group AG
- BMW AG
- Volkswagen Group
- Toyota Motor Corporation (Lexus)
- Jaguar Land Rover Automotive PLC
- Stellantis NV (Maserati, Alfa Romeo)
- Tesla Inc.
- Volvo Car Group
- Hyundai Motor Group (Genesis)
- Nissan Motor Co. (Infiniti)
- Geely Holding (Lotus, Zeekr)
- FAW Group (Hongqi)
For a full breakdown of market size, segmentation data, and competitive intelligence on Luxury Car Market, read details of Mordor Intelligence report at: https://www.mordorintelligence.com/industry-reports/luxury-car-market?utm_source=Globenewswire
Industry Related Reports by Mordor Intelligence
Luxury Car Rental Market: The Luxury Car Rental Market is valued at USD 51.82 billion in 2025 and is projected to reach USD 70.37 billion by 2030, registering a CAGR of 6.31% during the forecast period. Market growth is fueled by the rebound in global tourism, rising disposable incomes, and expanding access to premium vehicles through online booking platforms and subscription models, while fleet electrification and on-demand mobility services are reshaping customer experiences and operator strategies.
Connected Car Devices Market: The Connected Car Devices Market is valued at USD 63.27 billion in 2025 and is projected to reach USD 126.32 billion by 2030, registering a CAGR of 14.83% during the forecast period. Market growth is driven by the expanding integration of 5G connectivity, rising adoption of advanced driver-assistance systems (ADAS), and the transition toward software-defined vehicles, enabling enhanced safety, real-time diagnostics, and personalized in-car experiences.
Car Audio Market: The Car Audio Market is valued at USD 12.24 billion in 2025 and is projected to reach USD 20.22 billion by 2030, registering a CAGR of 10.56% during the forecast period. Market growth is driven by increasing consumer demand for premium in-car entertainment, the integration of voice-controlled and 3D surround sound systems, and the rapid adoption of software-defined vehicle architectures.
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