What’s next for UK luxury car sales?
UK luxury luxury car companies are set to publish their annual earnings in January, and analysts say the market is poised to reach a peak.
According to The Economist, UK luxury sales in the second half of this year are set for a record $4.6bn.
That compares with $3.5bn in 2016, a record low for a period of time.
The Economist says the UK luxury market has been a bright spot in the global luxury economy, with the average annual sales of a luxury car exceeding $20m, up from $15m in 2016.
The report notes that luxury cars in Britain account for almost 80% of the total car sales in Europe.
While the UK market has seen a dip in sales over the last few years, the Economist believes this could be a temporary blip.
“The decline in the sales of the Jaguar XJX, the new model introduced last year, is partly due to the price cuts of the XJ series, which have been so aggressive that the company is now working on a cheaper version of the car,” the report states.
“This is also likely to affect the growth of luxury carmakers in the UK, who will have to look at ways to lower their costs.”
In the short term, however, it looks like luxury cars will remain a significant part of the UK’s economy, and it is hoped that this trend will continue.””
It will be interesting to see how this changes in the next two years as the industry adjusts to the new Jaguar XJR.
We also expect that luxury car dealerships will remain popular as the luxury car industry is now increasingly a retail business.
“The UK luxury industry has been hit by a series of downturns.
The British luxury car sector was hit by the financial crisis, which saw sales of cars plummet by more than 20%.
The industry is also suffering from a slowdown in car demand due to Brexit.
While sales of luxury cars increased during the Brexit period, they have since plateaued.