In the face of prolonged stock market downturns around the world, major marques are increasing the pressure in the already crowded prestige car market with an ever-increasing array of new luxury offerings. However, those manufacturers already in the super luxury club can afford to push their lower priced models without losing status.
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Despite the current depressed economic climate, cars such as the Mercedes Maybach are trying to muscle in on territory traditionally dominated by players such as Bentley and Rolls Royce, as the number of new super-luxury vehicles being put on the market increases.
Manufacturers are hoping that the new models will boost interest from super-rich customers who already own several vehicles and want the latest prestige model. However, Bentley has estimated that the sector, which traditionally supports annual sales of between 1,600 and 1,700 vehicles worldwide, will reach 2,400 vehicles at most.
This figure is far short of the combined sales targets of the players currently active in this market. Rolls Royce and Mercedes each aim for sales of 1000 vehicles of this type per year and Bentley aims to sell 900 of its Arnage T luxury four-door model.
However, Bentley is anticipating worse than target sales for its top of the range Arnage model. It is hoping to make big gains with its Continental GT, a cheaper model at GBP110,000. The company already has 3,000 customers lined up for the car this year.
High prestige car manufacturers have lowered the bar in terms of cost before. For example, in the mid 1990s BMW launched a low-budget 318ti hatchback. And in 2001, Jaguar launched its entry level model, the X-Type -nicknamed the baby Jag. The success of such models has led to more fluidity in the automotive caste system.
Already a member of the top club, Bentley can afford to concentrate on car sales just below the GBP150,000 threshold without losing its super luxury status. Manufacturers that currently fall below the super luxury threshold progressively strive to gain share in this exclusive market, but it is always harder to climb up the mountain than it is to stroll down.
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