The premium car market share has grown by 57.3 percent over the past decade. That’s according to accident aftercare specialist AX.
In 2009, BMW and Mercedes enjoyed market shares of 4.95 percent and 3.62 percent respectively, but by 2018 these figures had grown to 7.28 percent and 7.27 percent.
Other winners include Audi (up from 4.57 percent to 6.07 percent), Volvo (up from 1.75 percent to 2.13 percent), and Jaguar (up from 0.91 percent to 1.56 percent). We’ve also seen the introduction of new brands, such as Alpine and McLaren, although a premium badge isn’t a passport to success. See the recent news about Infiniti.
The likes of the Mercedes-Benz A-Class, BMW 1 Series and Audi A3 have proved incredibly popular, with the availability of cheap finance making it easier for customers to push beyond the volume brands. When comparing PCP monthly payments, it’s often a small jump from regular hatchback to something with a posh badge.
This market shift has even encouraged some mainstream manufacturers to introduce new premium trim lines to their model ranges, such as Ford’s Vignale.
But as customers move upmarket, they also expect improved customer service and like-for-like replacement vehicles in the event of an accident.
Downgrading is not an option
Steve Molloy, director of commercial sales at AX, said: “Since 2009, we’ve seen prestige car brands taking more and more market share and, as with any other product, if people are paying more for something they are really proud of, they don’t want to downgrade to a less premium product while their pride and joy is repaired following an accident.
“Consumer expectation when it comes to customer service is only going to increase further still and insurers and brokers who can meet that throughout the accident management process will enjoy an increase in loyalty and retention.”