Luxury Cars Account for a Quarter of the Worldwide Luxury Goods Market image

The worldwide luxury goods market, with a total value of 960 billion euro, is dominated by the following branches in this order: hotels-traveling, cars and watches-jewelry.

If luxury services in the hotel-traveling branch rises up to 270 billion euro and expensive watches and jewels add another 100 billion euro, the luxury car industry makes people cash out around 250 billion euro annually.

Ian Robertson, Chief of Sales Department and Marketing at BMW sais that although it seems surprising that cars have such an importance in the worldwide luxury market, BMW is mainly responsible for this rise. BMW is quite confident in its place as the world’s biggest-selling premium auto maker, and plans to reach sales of over 2 million vehicles in 2016 instead of an earlier goal of 2020.

VW’s Audi also pulled forward its volume target earlier this month, saying it planned to achieve sales of 1.5 million vehicles before 2015. The two companies benefit from strong demand for luxury cars in emerging economies such as China, India and Russia.

“We are targeting new record highs in vehicle sales and pre-tax earnings for 2012. We are increasing our production capacity in China, the USA, South Africa and India, while at the same time evaluating potential production locations in the BRIKT markets,” declared BMW Chief Executive Norbert Reithofer.