Luxury car
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A luxury car is a passenger automobile providing superior comfort levels, features, and equipment. More expensive materials and surface finishes are used, and buyers expect a correspondingly high build quality.
The term is relative and unavoidably subjective, reflecting both objective qualities of a car and the projected and perceived image of the vehicle's marque.<ref name="consumer"/> Luxury brands rank above premium brands, though there is no clear distinction between the two.<ref>Template:Cite book</ref>
Luxury cars<ref>Template:Cite web</ref> span from sports cars to large saloons and sport utility vehicles. "Compact" luxury vehicles also fill a niche.<ref name="consumer">Template:Cite web</ref>
Classification standards
Several car classification schemes include a luxury category, such as:
- Australia: Since the year 2000, the Federal Government's luxury car tax applies to new vehicles over a certain purchase price, with higher thresholds applying for cars considered as fuel efficient.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> As of 2019, the thresholds were approximately AU$66,000 (US$Template:To USD,000) for standard cars and AU$76,000 (US$Template:To USD,000) for fuel-efficient vehicles.<ref>Template:Cite web</ref>
- Europe: Luxury cars are classified as F-segment vehicles in the European Commission classification scheme.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
- Italy: The term "auto di lusso" is used for luxury cars.<ref>Template:Cite web</ref>
- France: The term "voiture de luxe" is used for luxury cars.<ref name="grandes">Template:Cite web</ref>
- Germany: The term Template:Langx (upper class) is used for luxury cars.<ref name="obere">Template:Cite web</ref>
- Russia: The term (Template:Lang ("representative class vehicle, also translated as luxury vehicle) is used for luxury cars.<ref>Template:Cite web</ref>
- Rental cars: The ACRISS Car Classification Code is a system used by many car rental companies to define equivalent vehicles across brands. This system includes "Luxury" and "Luxury Elite" categories (along with "Premium" and "Premium Elite" categories).<ref>Template:Cite web</ref> The criteria for a vehicle to be considered "luxury" are not published.
Characteristics
Features
Luxury cars have traditionally emphasized higher levels of comfort, performance, and safety.<ref>Template:Cite web</ref> Manufacturers often introduce new safety technologies and comfort amenities on luxury models before they are available on more affordable models.<ref>Template:Cite web</ref> Some brands, like Audi and BMW have expanded their marketing downscale out of the traditional luxury realm by "introducing lesser priced and strip-down economy versions of their products."<ref>Template:Cite news</ref>
Luxury vehicles can be a status symbol for conspicuous consumption.<ref name="forbes1">Template:Cite news</ref> However, to lessen the theft of the most exotic models in a line, and cater to European luxury car buyers who shy away from being identified with conspicuous consumption, brands offer buyers the option of removing exterior badges that identify the model name or engine size.<ref name="nytimes1">Template:Cite news</ref>
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,<ref>Template:Cite web</ref><ref>Template:Cite web</ref> while others seek to optimize both.
Layout and powertrain
Traditionally, luxury cars have used a front-engine, rear-wheel drive (FR) layout. Due to improvements in technology, the FR layout is more expensive to produce and Template:Citation needed span however, it allows for larger engines (particularly straight-six, V8, and V12) to be used.<ref name="nytimes1"/><ref>Template:Cite web</ref><ref>Template:Cite magazine</ref><ref>Template:Cite news</ref>
Some American luxury cars during the 1970s through the 1990s switched to a front-wheel drive layout with a transverse engine provoked by the Arab Oil Embargo of 1973 and the 1979 oil crisis, which caused automakers to discontinue many FR platforms in favor of the more economical front-wheel drive (FF) layout.<ref>Template:Cite web</ref> From the early 2000s, several of these American luxury cars reverted to FR layouts.<ref>Template:Cite news</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Since the introduction of the Bentley Continental GT in 2003, additional luxury grand tourers have adopted all-wheel drive.<ref>Template:Cite web</ref>
History
European manufacturers
Before 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.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
France was a leading producer of powerful luxury automobiles before World War II.<ref name="facel-vega.com">Template:Cite web</ref> 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.<ref name="facel-vega.com"/> The Maserati-powered Citroën SM and the Citroën C6 were arguably the last domestic French luxury cars.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In the 2010s, some French manufacturers attempted to develop luxury cars; however the lack of a historical legacy hindered these efforts.<ref>Template:Cite news</ref> In 2014, Citroën introduced DS Automobiles sub-brand to market luxury cars.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Pre World War II, intermediate car manufacturers like Renault, Fiat, Opel, Lancia, Škoda, Riley, Praga, Peugeot, Hillman, and Tatra made luxury cars. However, they had to transition to produce economy cars and superminis post World War II.
Following World War II, Germany emerged as an export powerhouse, building on its success with the Mercedes-Benz brand. Aircraft engine manufacturer BMW began making motorcycles, then assembling small cars, including under license from the Austin Motor Company, and later evolved into the luxury market segment ultimately acquiring Rolls-Royce Motor Cars in 1998.<ref>Template:Cite web</ref><ref>Template:Cite news</ref> Volkswagen entered the high-end market by expanding or acquiring additional brands such as Audi, Porsche, Bentley, Lamborghini, and Bugatti.<ref>Template:Cite web</ref>
In the Soviet Union, the manufacturer ZiL (then called Zis) began producing representational limousines in the mid-1930s.<ref>Template:Cite web</ref> 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.
North American manufacturers
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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.<ref>Template:Cite book</ref> Emphasis was also placed on custom-built coachwork.<ref>Template:Cite book</ref> 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.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
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From 1946 until the late 1990s, Cadillac was the top-selling brand of luxury cars in the U.S., while Lincoln was second.<ref>Template:Cite news</ref> 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.<ref>Template:Cite web</ref>
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.<ref>Template:Cite web</ref> The cars were stylized, mass-produced two-door coupés or convertibles, relying on standard components.<ref>Template:Cite web</ref> These distinctively styled cars were targeting the needs of individual customers, not an entire family.<ref>Template:Cite book</ref> 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 of a million cars, and Lincoln had its best year ever, at 231,660 units.<ref name="Robertson">Template:Cite web</ref> However, the market was changing, with an ever-greater acceptance of smaller, more efficient imported luxury brands. At the same time, the domestic manufacturers were downsizing their models with product decisions that backfired on quality and brand respect.<ref name="Robertson"/>
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.<ref>Template:Cite webTemplate:Dead linkTemplate:Cbignore</ref><ref>Template:Cite web</ref>
Template:Anchor In the 2000s, both Ford and General Motors produced luxury pickups, including the 2002-2013 Cadillac Escalade EXT, the 2002-2003 Lincoln Blackwood, and the 2006-2014 Lincoln Mark LT. During the late 2000s, the Cadillac CTS and Cadillac DTS led to a resurgence in the brand's luxury sedans.<ref>Template:Cite web</ref> The equivalent sedan from the Ford group, the 2008 Lincoln MKS, was also regarded as a significant improvement over previous models.<ref>Template:Cite news</ref> 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.<ref name="online.wsj.com">Template:Cite news</ref> Template:Clear left
East Asian manufacturers
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Chinese manufacturer Hongqi was launched in 1958, making it the oldest Chinese luxury car marque.<ref>Template:Cite web</ref> 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, Zeekr in 2021, and Yangwang in 2023 producing luxury electric and hybrid vehicles.
Japanese manufacturers have been producing luxury cars since the 1950s, including the Toyota Crown (1955–present),<ref>Template:Cite web</ref><ref>Template:Cite web</ref> 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).<ref>Template:Cite web</ref>
Since the 1980s, overseas sales of Japanese luxury cars have increased, challenging traditional European luxury brands.<ref name="Eisenstein">Template:Cite web</ref>
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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.<ref name="Eisenstein"/>
2008 financial crisis and the Great Recession
The 2008 financial crisis and the Great Recession marked 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.<ref name="forbes1"/><ref>Template:Cite news</ref> 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.<ref name="Eisenstein"/> 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.<ref name="Eisenstein"/>
However, luxury vehicle sales remained relatively high compared to their non-luxury counterparts.<ref>Template:Cite web</ref><ref>Template:Cite news</ref> This was aided by growing interest in luxury vehicles from emerging markets such as China and Russia.<ref name="Eisenstein"/>
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.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> For example, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to discounted pricing on entry-level luxury vehicles.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Brands
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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)<ref name="LexusHistory">Template:Cite press release</ref> or purchased one (e.g. Bentley, by Volkswagen in 1998).<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
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).<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
For mass-produced luxury cars, sharing of platforms or components with other models is common,<ref>Template:Cite magazine</ref> as per modern automotive industry practice.
Market categories
Template:Anchor Compact executive / compact luxury
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",<ref name="consumerguideauto">Template:Cite web</ref> "entry-level luxury car" and "near-luxury car".<ref>Template:Cite magazine</ref> 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).
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Template:Anchor Executive / mid-size luxury
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.
Template:Anchor Luxury saloon / full-size luxury sedan
The next category of luxury cars is known in Great Britain as a "luxury saloon" or "luxury limousine,"<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> and is known in the United States as a full-size luxury sedan, large luxury sedan, or flagship sedan.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> 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.<ref>Template:Cite web</ref> Several models are available in long-wheelbase versions, which provide additional rear legroom and may have a higher level of standard features.<ref>Template:Cite magazine</ref>
Examples of luxury saloons / full-size luxury sedans include the BMW 7 Series,<ref name="carsalesbase.com Euro Limousine">Template:Cite web</ref> Jaguar XJ, Cadillac CT6,<ref name="carsalesbase.com USA limousine"/><ref>Template:Cite web</ref> Genesis G90,<ref name="carsalesbase.com USA limousine"/> Audi A8,<ref>Template:Cite web</ref> Mercedes-Benz S-Class,<ref name="carsalesbase.com Euro Limousine"/> Lexus LS,<ref name="carsalesbase.com USA limousine">Template:Cite web</ref>Hongqi L1, Porsche Panamera and Maserati Quattroporte.<ref name="carsalesbase.com Euro Limousine"/> Template:Clear right
Ultra-luxury
In 2007, luxury cars costing over Template:USD were considered as "ultra-luxury cars".<ref name="editorial.autos.msn.com">Template:Cite web</ref> Examples include the Rolls-Royce Phantom, Maybach 57 and 62, Hongqi L5, Bentley Mulsanne, Cadillac Celestiq, Toyota Century, and Aurus Senat.<ref name="editorial.autos.msn.com"/><ref>Template:Cite web</ref><ref>Template:Cite web</ref> 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 Template:USD.<ref name="editorial.autos.msn.com"/> 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.<ref>Template:Cite news</ref> Ultra-luxury cars are usually selected as the official state car.<ref>Template:Cite news</ref>
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Grand tourer
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.<ref>Template:Cite web</ref>
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Luxury SUV / Luxury crossover
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.<ref>Template:Cite web</ref><ref>Template:Cite book</ref><ref>Template:Cite web</ref><ref name="stuff66">Template:Cite web</ref>Template:Refpage It was the first off-road SUV to offer a V8 engine and automatic transmission along with luxury car trim and equipment.<ref>Template:Cite magazine</ref> 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.<ref name="stuff66"/>Template:Refpage It became "the most significant vehicle to carve a path for the modern luxury SUV".<ref>Template:Cite web</ref> By the late 1970s, optional equipment included an electric sunroof.<ref name="stuff66"/>Template:Refpage 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.<ref name="stuff66"/>Template:Refpage
The Range Rover was released in 1970 as a two-door vehicle for off-road durability with few "creature comforts."<ref>Template:Cite web</ref> 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.<ref>Template:Cite web</ref> The Range Rover had a long-travel coil-spring suspension and a modified, Buick-designed aluminum V8 engine.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In the mid-1990s, the SUV market expanded with new entrants and the entry-level Ford Explorer and upscale Jeep Grand Cherokee became the market leaders.<ref>Template:Cite magazine</ref> 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.<ref>Template:Cite book</ref>
The SUV models generated higher profit margins than passenger cars, and car manufacturers began introducing new luxury SUVs during the late 1990s.<ref name="Frankel 2006 35">Template:Cite book</ref> 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 began producing luxury versions. The Lexus RX was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US.<ref>Template:Cite web</ref> 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.<ref>Template:Cite news</ref> 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.<ref name="edmunds 2010 FX35">Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Despite the increased popularity of crossover models, traditional luxury SUVs remain in production. Examples include the Lexus LX, Infiniti QX80, and Lincoln Navigator.<ref>Template:Cite web</ref>
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.<ref>Template:Cite news</ref>
Luxury brands have introduced SUV or crossover models in the 2010s. These include: Mercedes-Maybach GLS, Porsche Cayenne, BMW X7, Audi Q8, Lamborghini Urus, Ferrari Purosangue, Maserati Levante, Rolls-Royce Cullinan, Bentley Bentayga, Aston Martin DBX, Range Rover, Lotus Eletre, Lexus LX, Infiniti QX80, Hongqi LS7, Zeekr 9X, Yangwang U8, Lincoln Navigator and Cadillac Escalade.
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Luxury MPV
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.<ref>Template:Cite web</ref><ref>Template:Cite press release</ref>
- Examples of luxury MPVs
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