SANTA MONICA, Calif., Dec. 8, 2016 /PRNewswire/ -- In 2016, luxury SUVs will outsell luxury cars in the U.S. for the first time, according to the new Luxury Market Report from Edmunds.com, the leading car shopping and information network. Luxury SUVs are on pace to secure 55 percent share of the market, and Edmunds analysts predict this gap will widen further in 2017 to 60 percent.
"Low gas prices, changing consumer tastes and attractive new vehicles are creating the perfect environment for luxury SUV sales to grow," said Jessica Caldwell, Edmunds executive director of industry analysis. "Given that luxury brand loyalty rates are typically higher than for volume brands, this trend has the potential to affect this vehicle segment for years to come."
While overall sales of luxury vehicles are expected to remain flat in 2016 as compared to last year, SUVs are bringing growth to brands that historically have been considered niche players. Jaguar and Volvo are enjoying the most gains, thanks to the popularity of the F-Pace and XC90. Jaguar's overall sales were up more than 81 percent through the first three quarters of the year, while Volvo's overall sales rose almost 26 percent. The F-Pace and XC90 are also helping Jaguar and Volvo attract a significantly higher number of conquest buyers, which has the long-term potential to help diversify a segment that's long been dominated by a small number of high-volume manufacturers.
This market shift is largely being led by women: 57 percent of women who bought a luxury vehicle in 2016 bought an SUV, compared to 49 percent of men. Women are also becoming increasingly more influential in the overall luxury market– this year just over 40 percent of luxury vehicles will be sold to women, compared to 36 percent in 2011.
"Luxury automakers who anticipated this trend are really reaping the rewards: they're attracting previously untapped buyers, increasing brand loyalty and enjoying healthy profit margins," Caldwell said. "It's a winning scenario that shows no signs of slowing down."
For more insights on the latest trends in the luxury market, read the complete report in the Edmunds Industry Center.
Car shopping destination Edmunds.com serves millions of visitors each month. With Edmunds.com Price Promise®, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Shoppers can browse not only dealer inventory, but also vehicle reviews, shopping tips, photos, videos and feature stories on both Edmunds' wired site and on its acclaimed mobile apps. Regarded as one of the best places to work in Southern California, Edmunds.com was also named one of "The World's Top 10 Most Innovative Companies of 2015 in Automotive" by Fast Company. Edmunds welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and firstname.lastname@example.org, via text at ED411 and on Twitter and Facebook. The company is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich., but you can find Edmunds from anywhere on YouTube, Pinterest, LinkedIn, Instagram, Google+ and Flipboard.
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