Luxury Cars - South America

South America

The Luxury Cars market in South America is anticipated to achieve a revenue of €1,135m by 2024.
It is projected to experience a compound annual growth rate (CAGR 2024-2028) of 1.36%, leading to a market volume of €1,198m by 2028.
In that year, unit sales in the Luxury Cars market are expected to reach 11.7k vehicles.
The volume weighted average price of Luxury Cars market in South America is estimated to be €106k in 2024.
When considering the global market, United States is expected to generate the highest revenue, with €6,170m in 2024.
In South America, the luxury car market is experiencing a surge in demand, with affluent consumers in countries like Brazil and Argentina driving the growth.

Key regions: United States, Worldwide, United Kingdom, Europe, Germany

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Analyst Opinion

The Luxury Cars market in South America is experiencing significant growth and development. Customer preferences in the Luxury Cars market in South America are shifting towards more high-end and luxurious vehicles.

Customers are increasingly looking for cars that offer superior performance, advanced technology features, and luxurious interiors. There is a growing demand for luxury SUVs and sports cars, as customers seek both comfort and style in their vehicles. Additionally, customers in South America are placing a greater emphasis on sustainability and environmental friendliness, leading to an increased interest in luxury electric and hybrid cars.

One of the key trends in the Luxury Cars market in South America is the increasing presence of international luxury car brands. Major luxury car manufacturers from Europe and the United States are expanding their operations in South America to tap into the growing market. These brands are introducing a wide range of luxury models and variants to cater to the diverse preferences of South American customers.

This trend is driving competition in the market and providing customers with more options to choose from. Another trend in the Luxury Cars market in South America is the rise of online car sales platforms. Customers are increasingly using online platforms to research and purchase luxury cars.

These platforms offer a convenient and transparent way for customers to compare different models, prices, and features. This trend is particularly appealing to the younger generation, who are tech-savvy and value convenience in their purchasing process. Local special circumstances in South America, such as high import taxes and limited infrastructure, have an impact on the Luxury Cars market.

Import taxes on luxury cars can significantly increase the price of these vehicles, making them less affordable for some customers. However, despite these challenges, the demand for luxury cars remains strong in South America, driven by a growing affluent class and increasing disposable incomes. Underlying macroeconomic factors, such as economic growth and stability, also play a role in the development of the Luxury Cars market in South America.

As the economy grows and incomes rise, more customers are able to afford luxury cars. Additionally, stable economic conditions provide customers with the confidence to make big-ticket purchases, including luxury cars. Overall, the Luxury Cars market in South America is witnessing a shift towards high-end and luxurious vehicles, driven by changing customer preferences and the presence of international luxury car brands.

The rise of online car sales platforms is also shaping the market, providing customers with more convenient options for purchasing luxury cars. Despite local challenges and macroeconomic factors, the market is expected to continue its growth trajectory in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).