More buyers than ever considered purchasing a luxury SUV, according to a quarterly analysis from Cox Automotive.
Over the course of Q1, 73% of high-end shoppers looked to purchase a luxury SUV, a quarterly and yearly increase of 5% and the highest number on record. However, this popularity came at the expense of premium cars and sedans, which dropped 6% from early 2022 to 45%, the lowest score for the segment.
Increased interest in the Buick Enclave and Encore contributed heavily to the luxury SUV market’s increase in popularity, with the former taking the top spot for the second consecutive quarter. Other high-demand vehicles were the BMW 3 series and the Mercedes-Benz E-class. Tesla’s Model 3 and Model Y were also popular, with the latter coming in tenth place, tied with the Buick Envision.
BMW remained the most popular manufacturer among luxury market consumers, followed by Lexus and Cadillac. Electric vehicle newcomers like Rivian, Lucid, and Polestar were the least shopped-for brands, accounting for only 4% of the segment. Tesla ranked eighth overall among premium buyers, despite becoming the best-selling high-end car manufacturer in Q1.
The recovery of high-end inventory has spurred growth in the luxury market, the easing of pent-up demand, and the ongoing shortage of affordable models. In prior reports, Cox Automotive has noted that subprime shoppers are being steadily pushed out of the car market due to high prices, limiting purchases to high-income earners. However, if the industry returns to its pre-pandemic norms, the premium segment could be at risk of shrinking as more budget-friendly options return.
