The luxury car market is growing and changing every day to suit the needs of prospective clientele. Where once before you could only dream of owning one, now luxury car manufacturers are looking at ways to make their brands open to more people.

Sales of luxury vehicles will continue to grow for many years to come, according to Jaguar and Land Rover.

The group marketing director for the British brands, Phil Popham, says there is plenty of growth potential for brands that produce premium vehicles and sell them at a premium price.

“We believe that the premium segments have got significant growth in future,” said Popham, who was in Australia this week as part of a visit to the Asia Pacific region.

“The world has and is becoming a more affluent place, there’s more and more affluent people. They are becoming increasingly brand savvy.”

He said success relied on the desirability of the brand being matched by unique and attractive products.

Popham said the growth would be a mix the arrival of new models and organic growth as buyers aspired to owning a luxury vehicle and wealth increased.

He also said emerging markets such as China and India brought potential for significant growth, while markets such as South Korea presented opportunities due to the greater acceptance of imported vehicles.

Sales of luxury cars have been steadily growing for more than a decade, with most manufacturers selling in market segments they haven’t traditionally competed in.

The bulk of that growth has been from intense competition from German brands Mercedes-Benz, BMW and Audi.

Whereas in the 1990s they produced a selection of luxury sedans and a sports car or two each now produces dozens of body styles covering SUVs, hatchbacks, coupes and the traditional luxury fare.

Much of the sales growth for those German brands has been at the lower end of the market, with each now selling city cars priced below many mainstream offerings.

But Jaguar says it will not follow the German brands as far down the price scale, saying it was too difficult to compete.

“We have no aspirations to be a volume brand, because that’s not our experience, that’s not our expertise.

Popham said the margins and investments required meant it did not make sense.

“[We’re not going to be] getting down into the smaller segments, where we haven’t got the economies of scale, we haven’t got the expertise, it would cost an incredible amount to invest,” he said.

“We’re not going to be a 2 million car company like BMW.”

“But we do want to be seen as a benchmark, we do want to be considered as one of the big players in the premium segment, a benchmark in terms of a our product attributes, in terms of our credibility and in terms of our geographical coverage.

“We have got ambitions to be a substantial player in the segments in which we compete, which is the premium segment.”

Popham said that could mean producing small cars.

“I wouldn’t say we would never introduce smaller cars … it really depends upon the trends,” said Popham.

“We’ll always look around our portfolio of products in terms of trends, where are the growth segments, where do we think we can have a credible product that will make money.”

Source http://www.drive.com.au/motor-news/luxury-cars-have-significant-growth-potential-20140514-389ss.html