Despite the corona crisis, the luxury car market is booming. While the total car market grew by 35% in 2021, the luxury car category grew by about 88%. Thus, according to the Association of Car Importers, sales of the Ferrari brand jumped by 166.7%, Maserati by 100% and Alfa Romeo by 95.1%.
In conversations we had with luxury car importers, it emerged that the demand trend continues this month as well, in parallel with the shortage around the world.
"The delay in approving the Ministry of Transportation's licensing fee caused a delay in dedication in January," said Shai Feldman, CEO of Sergeant, "but we estimate that this trend will continue this month as well."
For the Ferrari brand, for example, this was the peak year in Israel. "
Feldman explains the reasons for the increase in sales by saying that "as a result of the corona, many expenses such as trips and vacations abroad have decreased, and those who have bought less luxury vehicles in the past allow themselves as compensation.
In addition, if in the past every exit was the property of shareholders and executives, now intermediate levels are integrated and this has brought in new audiences. "
Regarding prices, says Feldman, "there are insignificant increases in the entire car market, but on the other hand the shekel has strengthened. The big challenge today is less in price increases and more in production. It is estimated that if there were no production problems in 2021, the car market in Israel could reach "350,000 dedications. The luxury car market is in the same predicament, there is still a shortage of supply from manufacturers, and we estimate that it will be at least until the middle of the year."
Erez Tropen, VP of Marketing and Sales at the Mizrahi Car Marketing Company, also talks about growth in the luxury car market, including leisure and off-road vehicles.
This was also the case in 2021, despite the chip crisis that has slowed the pace in recent months of the year.
Range Rover Evoque, for example, has risen 2.5 times in sales.
"People have more disposable income and less expenses, and for them this is an opportunity to fulfill a dream."
Tropen provides an amazing statistic about the actual significance of the number of purchases: "Two weeks ago we launched our flagship, the new Range Rover, which starts at NIS 1.2 million. After a week of marathon personal meetings, we already have several dozen orders, including from new customers ".
According to Dror Gorelnik, CEO of Lexus Israel, the reason for the jump in the luxury market is an increase in demand and the introduction of new brands.
In the luxury market, battery-powered vehicles - hybrid and electric - account for more than 50% of sales, compared to 25% in the general market.
"In 2021, we launched the electric U-X, which was its peak year after we sold 630 cars."
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