Expansion of Luxury Segment Creating Opportunities
23 June 1998
Expansion of Luxury Segment Creating Opportunities for Manufacturers and Luxury Vehicle Buyers Luxury Convertibles and Roadsters Becoming Hot Items
AGOURA HILLS, Calif., June 22 -- According to the J.D. Power
and Associates 1998 Luxury Vehicle Market Assessment(SM) the expansion in the
luxury segment to include convertibles, roadsters, hybrids and sport utility
vehicles (premium specialty vehicles) in addition to traditional sedans and
coupes, is creating more variety for luxury vehicle buyers to choose from.
This expansion, in addition to an increase in the number of affluent
households, is creating opportunities for manufacturers. The number of
convertible and roadster models in this segment combined is expected to
increase from 25 in 1997 to 38 by 2003.
"The light vehicle industry continues to fragment forcing manufacturers to
reposition both their products and their images to remain competitive,"
commented Lisa Plosky, director of automotive analysis at J.D. Power and
Associates. "These new premium specialty vehicles offer new and exciting
options for traditional luxury buyers. Also, due to the growth in both luxury
products and affluent households, it is important for manufacturers to
understand the dynamics of the segment and its potential as a source of
volume, image and profitability," said Ms. Plosky.
Based on the report, affluent buyers are going outside the traditional
luxury segments in order to find luxury-like products with distinctive and
assertive styling. For example, new prestige SUV introductions allow
consumers to find a luxury vehicle that gives both the performance of a luxury
sedan with the functionality and strong image of a sport utility vehicle.
The development of a near luxury and luxury vehicle market for
convertibles and roadsters is also consistent with these trends. The
assertiveness of premium specialty vehicles and strong brand identity are an
important compliment to an increasingly competitive and fragmented
marketplace.
"One important factor in the development of these premium specialty
vehicles involves the positive impact on brand -- especially in terms of
appealing to younger and affluent households," continued Ms. Plosky. "In a
luxury vehicle market that is experiencing rapid growth in terms of products
and makes, the ability to develop brand is a key competitive issue for
manufacturers. Convertibles and roadsters are clearly vehicles that are vital
to brand development," concluded Ms. Plosky.
The 1998 Luxury Vehicle Market Assessment is a comprehensive analysis
expanding upon the competitive issues impacting the luxury vehicle market
while emphasizing the nuances in premium specialty vehicles -- specifically,
the rapidly changing niche markets for convertibles and roadsters. The report
highlights socioeconomic influences, supply-side adjustments, sales and
industry forecasts and forward planning information.
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually. With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut. Its international locations include Japan, Korea, England,
Canada and Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. Media email contact: john.pepitone@jdpower.com.
This press release is provided for editorial use only. No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.
