New Luxury Products Conquest Non-Luxury Owners
07-25-14, 02:18 PM
#1
New Luxury Products Conquest Non-Luxury Owners
One of the most competitive parts of the U.S. new vehicle market is the lower end of the luxury space, where the Mercedes-Benz CLA-Class, Audi A3 sedan and BMW 320 all serve as gateways, at least on the car side, from the non-luxury makes up to the prestige brands. An IHS Automotive analysis of Polk new vehicle registration data indicates that the CLA-Class and A3 sedan are both succeeding in this effort as both appear on the list of models most likely to conquest non-luxury drivers. But they are not alone, and actually not at the top of the list. Among the ten premium models most likely to conquest non-luxury owners, the Volvo C70 ranks number one with more than two thirds of its conquests coming from non-luxury makes, followed by the JX and ILX (see table below). Nine of the ten models on this list are entry-level models based on price and/or size, but the Infiniti JX is a midsize crossover slotted above the EX. This situation speaks to the relative weakness of the EX, which will soon be replaced.
At the other end of the spectrum, the list of luxury models with the fewest percentage of non-luxury conquests indicates that Mercedes-Benz and BMW remain strong premium makes; each has three models on this top ten list. Note that only one of every ten S-Class conquests is from a non-luxury make, the lowest rate of any luxury model. Also note the overall difference in brand composition between the two lists, with the stronger luxury makes with broad product portfolios dominating the list of makes with low non-luxury conquests.
The fact that some luxury models are pulling more than half of their conquests from non-luxury makes suggests the line between luxury and non-luxury is blurry at best. As more luxury makes join Mercedes-Benz, BMW and Audi in the entry-level arena, and as mainstream makes continue to offer sophisticated products at the top of their portfolios, the division between luxury and non-luxury may fade even more.
At the other end of the spectrum, the list of luxury models with the fewest percentage of non-luxury conquests indicates that Mercedes-Benz and BMW remain strong premium makes; each has three models on this top ten list. Note that only one of every ten S-Class conquests is from a non-luxury make, the lowest rate of any luxury model. Also note the overall difference in brand composition between the two lists, with the stronger luxury makes with broad product portfolios dominating the list of makes with low non-luxury conquests.
The fact that some luxury models are pulling more than half of their conquests from non-luxury makes suggests the line between luxury and non-luxury is blurry at best. As more luxury makes join Mercedes-Benz, BMW and Audi in the entry-level arena, and as mainstream makes continue to offer sophisticated products at the top of their portfolios, the division between luxury and non-luxury may fade even more.
Ten Models with Highest Conquests from Non-Luxury Segments | % Total Conquests
Ten Models with Lowest Conquests from Non-Luxury Segments | % Total Conquests
- Volvo C70 68.01%
- Infiniti JX35 63.89%
- Acura ILX 59.66%
- Audi A3 57.34%
- Cadillac ATS 56.88%
- Acura RDX 56.53%
- BMW 128 53.93%
- Lexus CT200H 53.17%
- Land Rover LR2 52.47%
- Mercedes-Benz CLA-Class 51.83%
Ten Models with Lowest Conquests from Non-Luxury Segments | % Total Conquests
- Porsche 911 18.86%
- Porsche Panamera 18.19%
- BMW 550 17.76%
- Land Rover Range Rover 16.52%
- Mercedes-Benz CLS-Class 15.81%
- Lexus LS 15.45%
- BMW 640 14.97%
- BMW 750 14.91%
- Mercedes-Benz SL-Class 14.03%
- Mercedes-Benz S-Class 10.35%
07-25-14, 03:51 PM
#4
The pursuit of F
Was going to say something very similar. I don't consider the Acura Civic, I mean ILX, luxury whatsoever.
07-25-14, 05:17 PM
#6
Lexus Fanatic
I think most of the cars are luxury brands. Maybe not luxury cars but they should be a tier 1 or 2 luxury brand. I surprised the writer did not add the Chevrolet Verano on the list.
07-25-14, 06:52 PM
#7
Lexus Fanatic
Actually, the Verano IS getting at least some of the sales that the ill-fated ILX is losing. But neither one is really priced high enough to be in the "luxury" range....though the Verano drives like a mini-luxury car.
Notice, however, that the first group (conquests from non-luxury brands) are not all, but mostly, relatively inexpensive entry-level luxury models (by those automaker's standards). That shows that they are basically doing what they were intended to do......drawing in buyers to their entry-level category from other makes. In other words, those new-time buyers to that brand are walking before they run....and starting off on the lowest level in the brand.
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07-25-14, 06:55 PM
#8
Lexus Fanatic
Originally Posted by LexFather
It shows the power of the badge. Which is fine it is what it is.
The Evoque, IMO, is clearly an example of a vehicle that sells mostly because of image and the Land-Rover nameplate. Its rear-end styling, with the low, slant-down roofing and the slit-windows, makes it quite difficult to see out the back. I'm also not terribly impressed with its interior.
07-25-14, 07:39 PM
#9
The Evoque, IMO, is clearly an example of a vehicle that sells mostly because of image and the Land-Rover nameplate. Its rear-end styling, with the low, slant-down roofing and the slit-windows, makes it quite difficult to see out the back. I'm also not terribly impressed with its interior.
07-25-14, 08:18 PM
#10
Guest
Posts: n/a
The Evoque is fantastic and priced and equipped like a luxury car. The style alone trumps most in this group.
Just noticed the JX35, so most buyers are not from other luxury brands. Makes sense as they would have lower expectations so they are impressed by a pretty lackluster "luxury" vehicle.
Just noticed the JX35, so most buyers are not from other luxury brands. Makes sense as they would have lower expectations so they are impressed by a pretty lackluster "luxury" vehicle.
07-25-14, 08:29 PM
#11
Lexus Fanatic
Just noticed the JX35, so most buyers are not from other luxury brands. Makes sense as they would have lower expectations so they are impressed by a pretty lackluster "luxury" vehicle.
07-25-14, 10:19 PM
#12
Guest
Posts: n/a
Consumers and the market consider the Evoque a luxury SUV. The car was purposely designed with an emphasis on design so poor visibility doesn't matter. Something had to be sacrificed for style. I think sales might have levels off but for awhile they couldn't build the Evoque fast enough.
07-25-14, 11:01 PM
#13
Lexus Fanatic
I think in a few years, the real luxury brands are going to seriously eat into the premium upmarket (non luxury) cars like Acura, Buick, and the Avalon. The luxury makers have done a good job at attracting new buyers.
07-25-14, 11:39 PM
#14
HOLY CRAP!!! I didn't know they still sold the LR2, I thought it had been out of production for 4 or 5 years by now lol. I know the "Freelander", when that came out around 2000 or 2001, man what a pile of junk. The LR2 was better, but I could think of a million better SUV's out there for similar $$$$.
07-26-14, 12:29 AM
#15
HOLY CRAP!!! I didn't know they still sold the LR2, I thought it had been out of production for 4 or 5 years by now lol. I know the "Freelander", when that came out around 2000 or 2001, man what a pile of junk. The LR2 was better, but I could think of a million better SUV's out there for similar $$$$.
