Cars play many roles in the current market. Needless to say, they serve their primary function as a mode of transportation, but just as a suit and a T-shirt are both pieces of clothing they exist in different leagues, the same applies to luxury vehicles and daily drivers. High-end vehicles have a charm; they aren’t just machines that get you from one point to another—they’re an experience, a statement.
This sentiment is held worldwide, as most parts of the world are now actively involved in car culture, thanks to rising disposable income. In this blog post, we’ll talk about the current scenario around luxury car exports and the market for supercars.
Bird’s Eye View of The Global Luxury and Supercar Market
The global supercar and luxury car market is, undeniably, a niche segment. No two ways about it. Most cars sold aren’t high-end but come under the daily driver category. This is primarily due to the higher costs of these vehicles.
With that said, it is this higher price tag that compensates for the limited sales numbers (when compared to daily driver cars) and ends up making this segment of the market lucrative considering all factors. If we talk numbers, luxury car sales are projected to reach 211.2k vehicles in 2029, with revenue expected to be around £71,092,775.
The major brands in this industry, which are also highly sought after by emerging economies and wealthy individuals with plenty of disposable income, are brands like Ferrari, McLaren, Rolls-Royce, Bugatti, Lamborghini, and more. These companies tend to make limited-edition models quite often, which tend to sell like hotcakes—being sold out even before hitting the showroom floor. This very exclusivity makes these cars an easy sell.
Social Media and Its Influence
There was a time when seeing the interiors of a Lamborghini or hearing it absolutely floor the accelerator was a rare experience. One could perhaps see them in movies or, if lucky enough, in real life. However, today, with the advent of social media and digital marketing trends, it’s there for everyone to see—anytime, anywhere. Digital exposure, driven by platforms such as Instagram and YouTube, has removed the veil that once covered luxury and supercars.
Studies have shown that social media significantly influences purchasing decisions, especially among young people. Research indicates that social networking sites play a key role in the initial stages of need recognition and information gathering when it comes to luxury vehicle purchases. Automotive brands invest heavily in social media strategies to keep this momentum in their favour. Using these platforms, brands aim to build positive relationships with younger audiences, increasing awareness and guiding them toward a purchase. This serves both as marketing and a form of brand loyalty cultivation.
Digital Showrooms and Virtual Experiences
The rise of digital platforms allows buyers to explore any supercar showroom online. Virtual reality (VR) and augmented reality (AR) technologies are making it easier for customers to customise and purchase cars remotely.
The Market Has Grown
There was a time when the majority of buyers were concentrated in the Western Hemisphere, with the USA, UK, and Europe containing the bulk of supercars and luxury vehicles. Whilst this was once the case, other parts of the world have now also become viable markets for automotive companies.
Countries like China, India, and the UAE are experiencing a significant surge in demand for luxury cars due to rising disposable incomes and a predominantly young population. These factors make them key markets for exporting luxury cars and supercars.
The Ease of Shipment
There was a time when shipping a car internationally was a logistical nightmare, requiring it to be disassembled, shipped, and then reassembled at the destination country.
However, today, there are several methods for luxury car exports, including Container Shipping, Enclosed Transport, and Air Freight for ultra-rare or hypercars.
Issues With The Current Market
Despite overall growth, it isn’t all sunshine and rainbows when it comes to luxury car exports. Supercar showroom sales would increase manyfold, but most governments, in countries impose heavy fines upon luxury and supercars. Fully imported cars, in certain countries, see taxes and tariffs that are 100–200% of the car’s actual value, shooting up their price to an almost ludicrous amount.
Furthermore, emissions regulations are getting stricter by the day, imposing immense pressure upon manufacturers that rely heavily and primarily upon ICE cars. While some manufacturers are transitioning to hybrid and electric models, these changes are costly and time-consuming, and there isn’t a huge market for EVs in the supercar market sphere. Some markets, like the EU and UK, are planning to ban new petrol and diesel cars by 2035, which could force traditional supercar makers to rethink their entire approach. However, these are not set in stone, especially considering that EVs are on a decline due to their several issues and lack of emotional appeal, which doesn’t make them so desirable to this niche part of the overall automotive market.
Final Thoughts
The market is forever changing, and it takes a proactive effort to stay updated on the latest trends and regulations. Whilst taxes and tariffs are still a major hindrance, trade has been more open now than ever before. The supercar market, globally, is on the rise despite the challenges and is only expected to grow further with time. Tying up with a supercar showroom like GVE London for luxury car exports is a good strategy, as they have the expertise and network to bypass the common issues and ensure your car is exported with little to no issues.
