Luxury Electric Vehicle Market: Unleashing the Potential of a Growing Domain

Do you know that BMW 7 series manufacturers endeavor for a 25.2% electric vehicle penetration by 2030? Electric vehicles accounted for almost 15.2% of BMW sales in 2023.

Content provided by Research Nester

BMW is not the only top-notch company focusing on the electrification of luxury cars. Some others on the list are Porsche Taycan, Mercedes Benz EQC, and many more. These companies together are building a new era of sustainability without even compromising on the features. In this blog, we will dig into the various parameters associated with the luxury electric vehicle market.

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Why do consumers prefer electric luxury vehicles?

Sustainability

Sustainability has become a new standard for luxury. For instance, Europe is emphasizing reducing almost 55.2% reduction in carbon dioxide emissions from SUVs as well as new cars by the year 2030. Additionally, a survey conducted by Research Nester revealed that almost 62.5% of the consumers surveyed are considering an automotive brand’s commitment to sustainable practices before they make any purchase. The unique clientele of luxury vehicles is no exception.

Moving ahead in this direction, automakers are also showing keen interest in making sustainable vehicles. For instance, BMW Group targets to eradicate carbon dioxide emissions by almost 40.2% per vehicle by 2030. In 2023, the company sold out almost 82,710 complete electric BMWs.

Performance

Consumers are no longer concerned about the performance of luxurious electric vehicles since luxury automobile manufacturers produce exceptional-quality vehicles. For instance, the E-Tron GT is a coalescence of stellar looks, fast-moving performance, and opulent experience. The planted stance aids the sedan reach 0-100 km per hour in just 4 seconds.

Ultra-Modern Technology

Luxury electric vehicles are at the front line of technological evolution, rendering a plethora of ultra-modern features and connectivity options. These tech-savvy electric luxury car buyers are demanding seamless integration with smartphones, high-resolution infotainment systems, and autonomous driving capabilities.

Charging Infrastructure

According to the data published by the International Energy Agency, there were 2.71 million public charging points installed in the world by the end of 2022. Automakers are acknowledging the concern of the availability of fewer charging stations by enhancing the range of capabilities of electric vehicles.

Various countries are providing incentives to boost the sales of luxury electric vehicles. For example, New Zealand is giving cash rebates to people for switching to electric vehicles. In the US, President Biden has declared USD 7.51 billion for an EV charging infrastructure network. In California, the Clean Vehicle Rebate Project offers electric car incentives of up to USD 7000 on the latest EVs. The UK government renders a USD 3,480 discount on new electric vehicles under USD 48,760.

Luxury Electric Vehicle Market Analysis

The luxury electric vehicle market size was over USD 175.1 billion by the end of 2023. The market is set to reach USD 550 billion by the end of year 2036. The growth of the market can be attributed to the factors such as:

• High focus on innovative designs and features

• Rise in charging infrastructure

• Technological advancement in vehicles

• Supportive government policies and incentives

• High economic efficiency of luxury EV cars

Some of the prominent companies in the domain are BMW, Porsche, Tesla, BYD Auto, Kia, Volvo Cars, Mercedes and Audi. However, factors such as supply chain disruptions and economic uncertainties are some of the growth-hindering factors for the growth of the market.

Additionally, the North American electric vehicle market garnered almost 30.1% of the revenue in 2023. The growth of the market can be attributed to the rising disposable income and increasing living standards of the people. The people living in the United States had a per capita income of almost USD 81,630 in 2023.

The market is offering lucrative growth opportunities in the future. However, market players are required to understand the brass tacks of the business. An all-inclusive market research report gives data on various important parameters such as regional analysis, growth drivers, market constraints, etc. These parameters help the business to fabricate a niche for themselves and excel in the competition.