Luxury SUV Market Analysis

Sales Channel (Franchised Dealer, Independent Dealer)

Franchised dealer segment is estimated to dominate luxury SUV market share of over 77% by 2037. The segment growth can be attributed to the increasing rate of franchised dealerships. The franchise dealership business model has significantly impacted global auto sales during the last century and has continued to be a significant economic cornerstone since these companies are authorized and permitted to sell automobiles as a major automaker's direct representatives.

Expert mechanics at franchised dealerships are capable of providing a special combination of advantages that meet a variety of customer needs to distinguish themselves in the luxury SUV market with their assurance of authenticity and quality as well as their extensive assistance and customer care.

Franchised dealers sell new automobiles such as luxury SUVs since it is a profitable business model for manufacturers, local communities, and customers. Moreover, they offer financing and leasing options in addition to a large selection of new and used cars and provide unmatched dependability and quality assurance for their vehicles, which customers can rely on.

Luxury car brands are elevating their exclusivity game, making them more reliable. The franchise dealer business model has grown in popularity as a means of purchasing and maintaining automobiles, leading to an increase in the number of brand dealerships worldwide. The BMW brand is represented by over 4,400 dealers in 150 countries.

Furthermore, due to their minimal overhead, independent used automobile dealers frequently provide the cheapest deals available, which only sell used automobiles as they do not have the overhead costs involved with franchise dealers, and may cause lesser operating expenditures than other dealers, which could lead to lower prices.

Fuel Type (Gasoline, Diesel, Hybrid/Electric)

The hybrid/electric segment in the luxury SUV market is set to garner notable revenue in the coming years. The growth of the segment can be propelled by the increasing launch of hybrid variants. Sales of battery-electric, plug-in hybrid, and hybrid luxury SUVs have surged in recent years as the future belongs to electric vehicles, and manufacturers are introducing more of them to their portfolios every year to reduce pollution.

For instance, Hyundai Motor Co. announced the introduction of hybrid vehicles under its premium brand Genesis, which includes the GV60, GV70, and GV80 sports utility vehicles in addition to the G70, G80, and G90 sedans to boast lower pollutants and better economy and to increase their profit margins more than other vehicle types.

Product (Mini, Compact, Mid-Size, Full-Size)

By 2037, the mini segment is predicted to witness significant luxury SUV market share owing to the rising introduction of new models. In November 2023 Toyota introduced a compact SUV in India, the Land Cruiser 250 series with its choices for an electric and hybrid drivetrain, and is expected to pose a serious threat to Thar and Jimny.

Our in-depth analysis of the luxury SUV market includes the following segments: