Who is most inclined to look into buying a luxury vehicle in the US? What factors influence their final decision? Which features do they look for when buying a luxury vehicle?

What percentage of luxury vehicle drivers have more than one automobile?

How has the increase in experimental/innovative marketing effected the industry?

Luxury car dealerships are in the process of change, expansion and consolidation as manufacturers gear up for the anticipated growth in demand for this tier of product. Where can the best examples of this be seen and what can be learnt from these experiences?

Who is most inclined to look into buying a luxury vehicle in the US? What factors influence their final decision? Which features do they look for when buying a luxury vehicle?

What percentage of luxury vehicle drivers have more than one automobile?

How has the increase in experimental/innovative marketing effected the industry?

Luxury car dealerships are in the process of change, expansion and consolidation as manufacturers gear up for the anticipated growth in demand for this tier of product. Where can the best examples of this be seen and what can be learnt from these experiences?

What prospects are there for growth in this market?

These are just some of the major questions answered by Mintel's highly anticipated study of the Sports and Luxury Car Market.

From 1986 through 2000, the U.S. automobile luxury market experienced its longest and strongest rise in history. Unit sales between 1997 and 2002, the period under review in this report, grew by 17%. In the aftermath of the 9/11 tragedy and economic recession, critics suggested that luxury sales would plummet just as they had through the Great Depression and the 1930s. Instead, luxury sales, buoyed by nearly a decade of economic increase, fared better in 2001 and 2002 than either standard or compact vehicles.

Luxury sales are highly desirous for dealers and manufacturers, as higher sticker prices result in greater profit margins. On some ultra-luxury vehicles, supplier profit margins exceed 200%. As a result of the growth and the profit margins within the market, the field is becoming more competitive, with luxury brands seeking entrance into downscale markets, ultra-luxury suppliers entering luxury markets, and non-luxury brands moving upscale. The onslaught of new product over the next few years should further increase the market, as will increasing numbers of Boomers and Generation X consumers who have accumulated sufficient wealth to purchase these prestige products.

While the field grows more competitive, quality of product has risen throughout the automobile market, including among standard and compact cars, and light trucks. While luxury vehicles afford consumers substantial improvements in power, handling, design, safety, and comfort when compared with other vehicles, branding is becoming more and more essential to sales. And given recent growth, efforts of specific brands appear to be effective, with sales of Audi, BMW, Jaguar, Lexus, and Mercedes increasing.

OTHER RELEVANT REPORTS

A number of U.S. consumer intelligence reports covering other related sectors are in preparation, including:

· Brake, Muffler & Oil Shops, consumer intelligence-U.S. Report, July 2003

· Motorcycles, consumer intelligence-U.S. Report, April 2003

· The Auto Market, Vol. 5 Pick-ups, consumer intelligence-U.S. Report, March 2003

· The Auto Market, Vol. 4 SUVs & Minivans, consumer intelligence-U.S. Report, February 2003

· The Auto Market, Vol. 2 Standard Cars, consumer intelligence-U.S. Report, December 2002

· The Auto Market, Vol. 1 Compact Cars, consumer intelligence-U.S. Report, November 2002

· The Auto Sports Market, consumer intelligence-U.S. Report, March 2002

· The Car Rental Market, consumer intelligence-U.S. Report, February 2002

· The Tires Market, consumer intelligence-U.S. Report, November 2001