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High-End Car Brands Enjoy Increased Demand in Australia

Manufacturers  ·  May 20, 2021

High-End Car Brands Enjoy Increased Demand in Australia

The automotive industry has undoubtedly suffered difficulties from all directions—sales slump, recession, supply shortage, and the global pandemic. Recent sales data in Australia, however, show that luxury car brands enjoy increased demand and show resilience amid the overall market decline.

Luxury cars are more expensive in Australia and new car sales have long been in a downward trend, yet we’re seeing positive growth in this segment. This is a welcome development, no doubt. We’ll look deeper into what’s actually happening and what causes this buoyancy in the high-end car market. 

How is the luxury car market performing in Australia?

In August last year, Australia’s new car sales slumped to as low as 28.8%. However, luxury car brands showed more resilience. Though sales also slowed down, it was not as severe (at only 2.8%), and Audi actually enjoyed increased sales. 

Audi Australia spokesperson Shaun Cleary disclosed that for that period, Audi’s new car sales increased by 1.4% amid the challenges posed by the pandemic. Even the used Audi car segment performed positively.

In the first quarter of 2021, Aussies bought over 23,000 luxury vehicles, a marked 13% growth from Q1 of last year. Sales increases are not usually seen in the first quarter, but it did this year. One reason could be pent-up demand, which is what seems to be the case with Porches selling like pancakes.

Porsche Cars Australia PR Chief Chris Jordan stated that they’re seeing strong signs of recovery as they began serving a sudden demand from customers who held back from buying due to the pandemic. In March alone, they delivered 161 electric Taycans to new owners.

Why are luxury cars performing better than mainstream brands? 

There are several reasons for the luxury car market’s more resilient performance.

  1. Wealthy buyers have money to buy, with or without pandemic – the ability of the targeted market to buy luxury cars was not as hard-hit as that of buyers from lower market tiers. 
  2. Spending restrictions allowed for more disposable income – trips abroad and lavish lifestyle were restricted, so people had more money to spend on upmarket vehicles.    
  3. More people opt to travel in their own vehicle for safety reasons – this applies to all car categories, including used luxury cars, but more so for the wealthier segment due to their financial capability to readily buy or upgrade to a new car.
  4. Smoother import and export supply chains – Australian Automotive Dealers Association Chief Executive James Voortman attributes the sales improvement to the easing of restrictions experienced during the pandemic. Factories have resumed, and deliveries of high-end vehicles are catching up. 
  5. The air of exclusivity and the availability of newer models get buyers rushing to dealerships – Rolls-Royce expanded its range and offered customised service, while McLaren doubled its sales in 2020 with newer models.

Our Thoughts

Luxury cars are more a luxury in the Down Under than in most places mainly due to our country’s distance from where these cars come from. Plus, our right-hand-drive configuration and higher specs add up to make Australia-bound luxury vehicles more expensive. 

Being that, the market it serves is an elite segment whose ability to buy a new car has not been harshly affected by the pandemic. If at all, the pandemic has only resulted in more disposable money to spend on cars. 

With this, we expect better sales in most of the 17 luxury marques in Australia, aside from those already mentioned in this article. Expect more posts about Aston Martin, Bentley, Ferrari, Lamborghini, Maserati, Maybach, and Rolls Royce in our upcoming posts. 

Hear the latest from! You may also search for used luxury cars from our listing, or request for hard-to-find car parts by filling out this online form!

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