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A luxury car is a car that provides increased levels of comfort, equipment, amenities, quality, performance, and associated status compared to moderately priced cars. The term is subjective and reflects both the qualities of the car and the brand image of its manufacturer. Luxury brands rank above ''premium brands'', though there is no fixed demarcation between the two. Traditionally, most luxury cars were large
vehicles A vehicle (from la, vehiculum) is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles (motorcycles, cars, trucks, buses, mobility scooters for disabled people), railed vehicles (trains, trams), ...
, though smaller sports-oriented models were always produced. "
Compact Compact as used in politics may refer broadly to a pact or treaty; in more specific cases it may refer to: * Interstate compact * Blood compact, an ancient ritual of the Philippines * Compact government, a type of colonial rule utilized in Britis ...
" luxury vehicles such as
hatchbacks A hatchback is a car body configuration with a rear door that swings upward to provide access to a cargo area. Hatchbacks may feature fold-down second row seating, where the interior can be reconfigured to prioritize passenger or cargo volume. ...
, and off-road capable
sport utility vehicle A sport utility vehicle (SUV) is a car classification that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive. There is no commonly agreed-upon defini ...
s, are relatively modern trends.


Classification standards

Several car classification schemes include a luxury category, such as: * Australia: Since the year 2000, the Federal Government's luxury car tax applies to new vehicles over a certain purchase price, with higher thresholds applying for cars considered as fuel efficient. As of 2019, the thresholds were approximately AU$66,000 (US$,000) for normal cars and AU$76,000 (US$,000) for fuel-efficient cars. * Europe: Luxury cars are classified as F-segment vehicles in the European Commission classification scheme. * Italy: The term "auto di lusso" is used for luxury cars. * France: The term "voiture de luxe" is used for luxury cars. * Germany: The term german: Oberklasse (''upper class'') is used for luxury cars. * Russia: The term ( (''"representative class vehicle'', also translated as ''luxury vehicle'') is used for luxury cars. * Rental cars: The ACRISS Car Classification Code is a system used by many car rental companies to define equivalent vehicles across brands. This system includes "Luxury" and "Luxury Elite" categories (along with "Premium" and "Premium Elite" categories). The criteria for a vehicle to be considered "luxury" is not published.


Characteristics


Features

Luxury cars have traditionally emphasized higher levels of comfort and safety, with manufacturers often introducing new safety technologies and comfort amenities on luxury models before they are available on more affordable models. Some brands, like
Audi Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its parent company, the Volkswagen Group, Audi produces vehicles in nine production facilities worldwide. ...
and BMW have expanded their marketing by "introducing lesser priced and strip-down economy versions of their products." Luxury vehicles can be a status symbol for
conspicuous consumption In sociology and in economics, the term conspicuous consumption describes and explains the consumer practice of buying and using goods of a higher quality, price, or in greater quantity than practical. In 1899, the sociologist Thorstein Veblen c ...
. However, since many European luxury car buyers shy away from conspicuous consumption, brands offer buyers the option of removing exterior badges that identify the model name or engine size. The suspension system of most luxury cars is tuned to prioritize ride quality over handling, however, some cars are marketed as "sports luxury" and have a greater emphasis on handling characteristics.


Layout and powertrain

Traditionally, luxury cars have used a front-engine, rear-wheel drive (FR) layout. The FR layout is more expensive to produce and produces lower fuel economy than a front-wheel drive layout, however, it allows for larger engines (particularly
straight-six The straight-six engine (also referred to as an inline-six engine; abbreviated I6 or L6) is a piston engine with six cylinders arranged in a straight line along the crankshaft. A straight-six engine has perfect primary and secondary engine bal ...
, V8, and V12) to be used. Many American luxury cars during the 1970s through the 1990s switched to a front-wheel drive layout with
transverse engine A transverse engine is an engine mounted in a vehicle so that the engine's crankshaft axis is perpendicular to the direction of travel. Many modern front-wheel drive vehicles use this engine mounting configuration. Most rear-wheel drive vehicle ...
, due to the
Arab Oil Embargo The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supp ...
of 1973 and the 1979 fuel crises which eliminated many FR platforms in favor of the more economical
front-wheel drive Front-wheel drive (FWD) is a form of engine and transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longitu ...
(FF) layout. From the early 2000s, several of these American luxury cars reverted to FR layouts. Since the introduction of the Bentley Continental GT in 2003, additional luxury cars feature
all-wheel drive An all-wheel drive vehicle (AWD vehicle) is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand. The most common forms of all-wheel drive are: ;1x1 : All unicycles Reflecting one axle with one ...
.


History


European manufacturers

Prior to
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
, a wide array of European producers made luxury cars, including Rolls-Royce,
Bugatti Automobiles Ettore Bugatti was a German then French manufacturer of high-performance automobiles. The company was founded in 1909 in the then-German city of Molsheim, Alsace, by the Italian-born industrial designer Ettore Bugatti. The cars ...
,
Delage Delage was a French luxury automobile and racecar company founded in 1905 by Louis Delâge in Levallois-Perret near Paris; it was acquired by Delahaye in 1935 and ceased operation in 1953. On 7 November 2019, the association "Les Amis de D ...
, Delahaye, Talbot-Lago,
Bentley Bentley Motors Limited is a British designer, manufacturer and marketer of luxury cars and SUVs. Headquartered in Crewe, England, the company was founded as Bentley Motors Limited by W. O. Bentley (1888–1971) in 1919 in Cricklewood, Nort ...
,
Alvis Alvis may refer to: *Alvis Car and Engineering Company, British luxury car and military vehicle manufacturer which later became Alvis plc *Alvis plc (formerly United Scientific Holdings plc), a defence contractor which acquired Alvis Cars and beca ...
,
Avions Voisin Avions Voisin was a French luxury automobile brand established by Gabriel Voisin in 1919 which traded until 1939. History Gabriel B. Voisin was an aviation pioneer and manufacturer who in 1919 started producing cars using Knight-type ...
, Isotta Fraschini,
Horch Horch () was a car brand manufacturer, founded in Germany by August Horch & Cie at the beginning of the 20th century. It is one of the predecessors of the present day Audi company, which itself resulted from the merger of Auto Union Aktieng ...
, Simson,
Stoewer Stoewer was a German automobile manufacturer before World War II whose headquarters were in Stettin (Now Szczecin, Poland). History The first company was founded by the Stoewer brothers, Emil (lived 1873 - 1942) and Bernhard (1875 - 1937) in ...
,
Maybach Maybach (, ) is a German luxury car brand that exists today as a part of Mercedes-Benz. The original company was founded in 1909 by Wilhelm Maybach and his son Karl Maybach, originally as a subsidiary of ''Luftschiffbau Zeppelin GmbH'', and ...
,
Mercedes-Benz Mercedes-Benz (), commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG (a Mercedes-Benz Group subsidiary established in 2019) is headquarte ...
, Hispano Suiza, Daimler Company, and Spyker. France was a leading producer of powerful luxury automobiles prior to World War II. After World War II, the French government used ''puissance fiscale'' tax regulations to encourage manufacturers to build cars with small engines, and French motorists to buy them. The Maserati-powered Citroën SM and the Citroën C6 were arguably the last domestic French luxury cars. In the 2010s, some French manufacturers have attempted to develop luxury cars, however the lack of a historical legacy has hindered these efforts. In 2014, Citroën introduced DS Automobiles sub-brand to market luxury cars. Pre
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
intermediate car manufactures like
Renault Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
,
Fiat Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiar ...
,
Opel Opel Automobile GmbH (), usually shortened to Opel, is a German automobile manufacturer which has been a subsidiary of Stellantis since 16 January 2021. It was owned by the American automaker General Motors from 1929 until 2017 and the PSA Grou ...
,
Lancia Lancia () is an Italian car manufacturer and a subsidiary of FCA Italy S.p.A., which is currently a Stellantis division. The present legal entity of Lancia was formed in January 2007 when its corporate parent reorganised its businesses, but it ...
, Škoda, Riley,
Praga Praga is a district of Warsaw, Poland. It is on the east bank of the river Vistula. First mentioned in 1432, until 1791 it formed a separate town with its own city charter. History The historical Praga was a small settlement located at ...
,
Peugeot Peugeot (, , ) is a French brand of automobiles owned by Stellantis. The family business that preceded the current Peugeot companies was founded in 1810, with a steel foundry that soon started making hand tools and kitchen equipment, and then ...
,
Hillman Hillman was a British automobile marque created by the Hillman-Coatalen Company, founded in 1907, renamed the Hillman Motor Car Company in 1910. The company was based in Ryton-on-Dunsmore, near Coventry, England. Before 1907 the company had ...
, Tatra made luxury cars but were forced to make economy cars and superminis post
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
. Following World War II, Germany rose to become an export powerhouse, building on success with the Mercedes-Benz brand, later joined by BMW, which acquired Rolls-Royce Motor Cars, as well as
Volkswagen Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...
that controls
Audi Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its parent company, the Volkswagen Group, Audi produces vehicles in nine production facilities worldwide. ...
,
Porsche Dr. Ing. h.c. F. Porsche AG, usually shortened to Porsche (; see below), is a German automobile manufacturer specializing in high-performance sports cars, SUVs and sedans, headquartered in Stuttgart, Baden-Württemberg, Germany. The company ...
,
Bentley Bentley Motors Limited is a British designer, manufacturer and marketer of luxury cars and SUVs. Headquartered in Crewe, England, the company was founded as Bentley Motors Limited by W. O. Bentley (1888–1971) in 1919 in Cricklewood, Nort ...
,
Lamborghini Automobili Lamborghini S.p.A. () is an Italian brand and manufacturer of luxury sports cars and SUVs based in Sant'Agata Bolognese. The company is owned by the Volkswagen Group through its subsidiary Audi. Ferruccio Lamborghini (1916–19 ...
, and
Bugatti Automobiles Ettore Bugatti was a German then French manufacturer of high-performance automobiles. The company was founded in 1909 in the then-German city of Molsheim, Alsace, by the Italian-born industrial designer Ettore Bugatti. The cars ...
brands. In the Soviet Union, the manufacturer ZiL (then called Zis) began producing representational limousines in the mid-1930s. In the early 1950s GAZ joined with the somewhat smaller "Chaika" model range.


North American manufacturers

The luxury car phenomenon began at the start of the automobile industry when the wealthy frequently invested in the manufacture of such models to gain the social prestige associated thereby. Emphasis was also placed on custom-built coachwork. The 1920s and 1930s were the apogee of production of these very large luxury automobiles from many manufacturers. The significant North American manufacturers from 1910-1940 were Auburn,
Buick Buick () is a division of the American automobile manufacturer General Motors (GM). Started by automotive pioneer David Dunbar Buick in 1899, it was among the first American marques of automobiles, and was the company that established General ...
,
Cadillac The Cadillac Motor Car Division () is a division of the American automobile manufacturer General Motors (GM) that designs and builds luxury vehicles. Its major markets are the United States, Canada, and China. Cadillac models are distributed ...
,
Chrysler Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotiv ...
, Continental, Cord, Daniels, DeSoto,
Duesenberg Duesenberg Automobile and Motors Company, Inc. was an American racing and luxury automobile manufacturer founded in Indianapolis, Indiana, by brothers Fred and August Duesenberg in 1920. The company is known for popularizing the straight-e ...
, Franklin,
Imperial Imperial is that which relates to an empire, emperor, or imperialism. Imperial or The Imperial may also refer to: Places United States * Imperial, California * Imperial, Missouri * Imperial, Nebraska * Imperial, Pennsylvania * Imperial, Texas ...
, LaFayette, LaSalle, Lincoln, Marmon,
Packard Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958. One of the "Th ...
,
Peerless Peerless may refer to: Companies and organizations * Peerless Motor Company, an American automobile manufacturer. * Peerless Brewing Company, in Birkenhead, UK * Peerless Group, an insurance and financial services company in India * Peerless Re ...
,
Pierce Arrow The Pierce-Arrow Motor Car Company was an American motor vehicle manufacturer based in Buffalo, New York, which was active from 1901 to 1938. Although best known for its expensive luxury cars, Pierce-Arrow also manufactured commercial trucks ...
, Ruxton, Stearns-Knight, and
Stutz The Stutz Motor Car Company, was an American producer of high-end sports and luxury cars based in Indianapolis, Indiana. Production began in 1911 and ended in 1935. Stutz was known as a producer of fast cars including America's first spo ...
. The Great Depression put many luxury car manufacturers out of business; others would hold on before going defunct during the postwar era. From 1946 until the late 1990s, Cadillac was the top-selling brand of luxury cars in the U.S., while Lincoln was second. The most successful and long-running model names during this era were the Cadillac DeVille,
Lincoln Continental The Lincoln Continental is a series of mid-sized and full-sized luxury cars produced by Lincoln, a division of the American automaker Ford Motor Company. The model line was introduced following the construction of a personal vehicle for Ed ...
, and the
Chrysler Imperial The Chrysler Imperial, introduced in 1926, was Chrysler (division), Chrysler's top-of-the-line vehicle for much of its history. Models were produced with the Chrysler name until 1954, after which it became Imperial (automobile), a standalone bra ...
. The Lincoln Mark Series and Cadillac Eldorado were positioned in the personal luxury category and competition between them continued into the 1990s. The
personal luxury car Personal luxury car is a North American car classification describing somewhat sporty, sophisticated mass-market coupés that emphasized comfort over performance. The North American manufacturers most often combined engineering, design, and mar ...
emerged into mass popularity and affordability as an America-specific category of popularly-priced cars made from the 1950s by the four domestic manufacturers (GM, Ford, Chrysler, and AMC) that reached peak popularity in the 1970s. The cars were stylized, mass-produced two-door
coupé A coupe or coupé (, ) is a passenger car with a sloping or truncated rear roofline and two doors. The term ''coupé'' was first applied to horse-drawn carriages for two passengers without rear-facing seats. It comes from the French past parti ...
s or
convertible A convertible or cabriolet () is a passenger car that can be driven with or without a roof in place. The methods of retracting and storing the roof vary among eras and manufacturers. A convertible car's design allows an open-air driving expe ...
s, relying on standard components. These distinctively styled cars were targeting the needs of individual customers, not an entire family. The longest running model lines were the 1958-1997 Ford Thunderbird, 1956-1998 Lincoln Mark Series, and the 1967-2002 Cadillac Eldorado. In 1990, American luxury brands dominated with Cadillac selling over a quarter-million cars and Lincoln had its best year ever at 231,660 units. However, the market was changing with an ever greater acceptance of smaller, more efficient imported luxury brands while at the same time the domestic manufacturers were downsizing their models with product decisions that backfired on quality and brand respect. Since the late 1990s, Japanese and German brands have sold the most luxury-type cars in the United States. However, the Cadillac Escalade has led the luxury SUV segment sales in the United States since its introduction in 1998, with the highest sales for 15 out of its first 20 years on the market. In the 2000s, both Ford and General Motors produced luxury pickups: the 2002-2013
Cadillac Escalade EXT The Cadillac Escalade is a full-size luxury SUV engineered and manufactured by General Motors. It was Cadillac's first major entry into the SUV market. The Escalade was introduced for the 1999 model year in response to competition from the Merce ...
, 2002-2003 Lincoln Blackwood, and 2006-2014 Lincoln Mark LT. In the late 2000s, the Cadillac CTS and
Cadillac DTS The Cadillac DTS is a full-size, four-door, front-drive, five or six passenger luxury sedan that was manufactured and marketed over a single generation for model years 2006–2011 by Cadillac, using GM's G-platform. The DTS debuted at the 2005 ...
led to a resurgence in the brand's luxury sedans. The equivalent sedan from the Ford group, the 2008 Lincoln MKS, was also regarded as a significant improvement over previous models. In 2010, BMW was the best-selling luxury vehicle manufacturer by sales, with Audi and Mercedes-Benz the second and third highest selling luxury brands.


East Asian manufacturers

Chinese manufacturer Hongqi was launched in 1958, making it the oldest Chinese luxury car marque. Later newcomers joined taking advantage of the rise of electric powertrains, with NEV brands such as
Nio are two wrathful and muscular guardians of the Buddha standing today at the entrance of many Buddhist temples in East Asian Buddhism in the form of frightening wrestler-like statues. They are dharmapala manifestations of the bodhisattva Vajrap ...
in 2014, Li Auto in 2015, HiPhi in 2019, and BYD in 2020 producing luxury electric and hybrid vehicles. Japanese manufacturers have been producing luxury cars since the 1950s, including the Toyota Crown (1955–present), Prince/Nissan Gloria (1959–2004),
Nissan Cedric The is a large automobile produced by Nissan since 1960. It was developed to provide upscale transportation, competing with the Prince Skyline and Gloria which were later merged into the Nissan family. In later years, the Nissan Skyline was posi ...
(1960–2015),
Mitsubishi Debonair The is a four-door executive sedan introduced by Mitsubishi Motors in 1964 to serve as their flagship passenger vehicle in the Japanese market. The word "debonair" means gentle, courteous, suave, lighthearted, or nonchalant. __TOC__ Overv ...
(1964–1998), Nissan President (1965–2010), Toyota Century (1967–present), Mazda Luce/929 (1969–1991), and Honda Legend (1985–present). Since the 1980s, overseas sales of Japanese luxury cars have increased, challenging traditional European luxury brands. Several East Asian manufacturers have created sub-brands for the marketing of luxury cars. The first of these was the 1986 launch of
Acura Acura is the luxury vehicle, luxury and performance division of Japanese automaker Honda, based primarily in North America. The brand was launched in the United States and Canada on March 27, 1986, marketing luxury and performance automobiles. It ...
(a Honda sub-brand), followed by
Lexus is the luxury vehicle division of the Japanese automaker Toyota. The Lexus brand is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese ...
(Toyota) in 1989, Infiniti (Nissan) in 1989, and
Genesis Genesis may refer to: Bible * Book of Genesis, the first book of the biblical scriptures of both Judaism and Christianity, describing the creation of the Earth and of mankind * Genesis creation narrative, the first several chapters of the Book of ...
(Hyundai) in 2015.


Global financial crisis

The late-2000s global financial crisis was the first time since the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
of the 1930s that the luxury car market suffered considerably, something not seen in previous economic downturns. Many such customers saw their net worth decline following the collapse in financial markets and real-estate values. For example, some of the steepest drop-offs came at the high end, including the
BMW 7 Series The BMW 7 Series is a full-size luxury sedan manufactured and marketed by the German automaker BMW since 1977. It is the successor to the BMW E3 "New Six" sedan and is now in its seventh generation. The 7 Series is BMW's flagship car and is ...
and
Rolls-Royce Phantom Rolls-Royce has used the Phantom name on full-sized luxury cars over the past century: *Rolls-Royce Phantom I, 1925–1931 *Rolls-Royce Phantom II, 1929–1936 *Rolls-Royce Phantom III, 1936–1939 *Rolls-Royce Phantom IV, 1950&ndash ...
, and in 2010 Mercedes-Benz dropped the price of the W212 E-Class. The unusually sharp decline in luxury car sales has led observers to believe that there is a fundamental shift and reshaping of the luxury automotive market, with one industry official suggesting that the marques no longer command the premiums that they used to, and another saying that conspicuous consumption was no longer attractive in poor economic conditions. Additionally, mainstream brands have been able to offer amenities and devices such as leather, wood, and anti-lock brakes, previously found only on luxury cars, as the costs decline. However, luxury vehicle sales did not collapse as much as their non-luxury counterparts. This was aided by growing interest in luxury vehicles from emerging markets such as China and Russia. Sales in the entry-level luxury segment remained strong throughout the GFC, due to prices being lowered to compete with well-equipped non-luxury cars. For example, in Canada, several luxury manufacturers set sales records in August 2009, due mostly to discounted pricing on entry-level luxury vehicles.


Brands

Some auto manufacturers market their luxury models using the same marque as the rest of their line. Others have created a separate marque (e.g.
Lexus is the luxury vehicle division of the Japanese automaker Toyota. The Lexus brand is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese ...
, launched by
Toyota is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
in 1989) or purchased one (e.g.
Bentley Bentley Motors Limited is a British designer, manufacturer and marketer of luxury cars and SUVs. Headquartered in Crewe, England, the company was founded as Bentley Motors Limited by W. O. Bentley (1888–1971) in 1919 in Cricklewood, Nort ...
, by
Volkswagen Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...
in 1998). Occasionally, a luxury car is initially sold under a mainstream marque and is later
rebranded Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investor ...
under a specific luxury marque (for example the Hyundai's
Genesis Genesis may refer to: Bible * Book of Genesis, the first book of the biblical scriptures of both Judaism and Christianity, describing the creation of the Earth and of mankind * Genesis creation narrative, the first several chapters of the Book of ...
to
Genesis G80 The Genesis G80 ( ko, 제네시스 G80) is an executive sedan manufactured by South Korean luxury marque Genesis, which is owned by Hyundai Motor Company. The G80 model was previously introduced as the second-generation Hyundai Genesis model ( ...
as well as the Citroën DS to DS 5). For mass-produced luxury cars, sharing of platforms or components with other models is common, as per modern automotive industry practice.


Market categories


Premium compact / Subcompact executive

The premium compact class is the category of the smallest luxury cars. It became popular in the mid-2000s, when European manufacturers (such as Audi, Volvo, BMW, and Mercedes-Benz) introduced new entry-level models that were smaller and cheaper than their compact executive models. The premium compact cars are usually based on the platform of a
compact car Compact car is a vehicle size class — predominantly used in North America — that sits between subcompact cars and mid-size cars. "Small family car" is a British term and a part of the C-segment in the European car classification. However ...
(also known as "small family car" or
C-segment The C-segment is the 3rd category of the European segments for passenger cars and is described as "medium cars". It is equivalent to the Euro NCAP "small family car" size class, and the compact car category in the United States. In 2011, the C- ...
), while some models may be based on a
subcompact car Subcompact car is a North American classification for cars smaller than a compact car. It is broadly equivalent to the B-segment (Europe), supermini (Great Britain) or A0-class (China) classifications. According to the U.S. Environmental Pr ...
(also known as
supermini The B-segment is the second smallest of the European segments for passenger cars between the A-segment and C-segment, and commonly described as "small cars". The B-segment is the largest segment in Europe by volume, accounting for 20 percent ...
or B-segment). Examples include the
Mercedes-Benz A-Class The Mercedes-Benz A-Class is a subcompact car produced by the German automobile manufacturer Mercedes-Benz as the brand's entry-level vehicle. The first generation (internally coded W168) was introduced in 1997, the second generation (W169) i ...
and CLA-Class, Audi A3, Volvo S40, BMW 1 Series, and 2 Series. Premium compacts compete with well-equipped
mid-size car Mid-size—also known as intermediate—is a vehicle size class which originated in the United States and is used for cars larger than compact cars and smaller than full-size cars. "Large family car" is a UK term and a part of the D-segment in ...
s, and highly optioned premium compact cars can have pricing and features that overlap models in the compact executive segment. File:2018 Mercedes-Benz A200 AMG Line Premium Automatic 1.3 Front.jpg,
Mercedes-Benz A-Class The Mercedes-Benz A-Class is a subcompact car produced by the German automobile manufacturer Mercedes-Benz as the brand's entry-level vehicle. The first generation (internally coded W168) was introduced in 1997, the second generation (W169) i ...
hatchback (2018–present) File:2020 BMW M235i xDrive Gran Coupe Front.jpg, BMW 2 Series Gran Coupé (2019–present) File:Audi_A3_8Y_Sedan_IMG_3577.jpg, Audi A3 sedan (2020–present)


Compact executive / compact luxury

A
compact executive car A compact executive car, also known as a compact luxury car, is a premium car larger than a premium compact and smaller than an executive car. Compact executive car is a UK term and a part of the D-segment in the European car classification. A ...
or a compact luxury car is a premium car larger than a premium compact and smaller than an
executive car Executive car is a British term for a large car which is equivalent to the European E-segment and American full-size classifications. Executive cars are larger than compact executive cars (and the non-luxury equivalent mid-size cars), and sm ...
. In European classification, compact executive cars are part of the
D-segment The D-segment is the 4th category of the European segments for passenger cars, and is described as "large cars". It is equivalent to the Euro NCAP "large family car" size class, and the present-day definition of the mid-size car category us ...
. In North American terms, close equivalents are "compact premium car", "compact luxury car", "entry-level luxury car" and "near-luxury car". Compact executive cars are usually based on the platform of a
mid-size car Mid-size—also known as intermediate—is a vehicle size class which originated in the United States and is used for cars larger than compact cars and smaller than full-size cars. "Large family car" is a UK term and a part of the D-segment in ...
(also known as large family car or
D-segment The D-segment is the 4th category of the European segments for passenger cars, and is described as "large cars". It is equivalent to the Euro NCAP "large family car" size class, and the present-day definition of the mid-size car category us ...
), while some models may be based on a
compact car Compact car is a vehicle size class — predominantly used in North America — that sits between subcompact cars and mid-size cars. "Small family car" is a British term and a part of the C-segment in the European car classification. However ...
(also known as small family car or
C-segment The C-segment is the 3rd category of the European segments for passenger cars and is described as "medium cars". It is equivalent to the Euro NCAP "small family car" size class, and the compact car category in the United States. In 2011, the C- ...
). File:MB W206 1.jpg, Mercedes-Benz C-Class (2021–present) File:2018 Alfa Romeo Giulia Speciale TD Automatic 2.1 Front.jpg, Alfa Romeo Giulia (2015–present) File:Volvo S60 T5 R Monrepos 2019 IMG 1886.jpg,
Volvo S60 The Volvo Group ( sv, Volvokoncernen; legally Aktiebolaget Volvo, shortened to AB Volvo, stylized as VOLVO) is a Swedish multinational manufacturing corporation headquartered in Gothenburg. While its core activity is the production, distributio ...
(2019–present)


Executive / mid-size luxury

Executive car is a British term for an
automobile A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods. The year 1886 is regarded ...
larger than a
large family car The D-segment is the 4th category of the European segments for passenger cars, and is described as "large cars". It is equivalent to the Euro NCAP "large family car" size class, and the present-day definition of the mid-size car category use ...
. In official use, the term is adopted by
Euro NCAP The European New Car Assessment Programme (Euro NCAP) is a European voluntary car safety performance assessment programme (i.e. a New Car Assessment Program) based in Leuven (Belgium) formed in 1996, with the first results released in Februa ...
, a European organization founded to test for car safety. It is a passenger car classification defined by the European Commission. File:2016 Mercedes-Benz E220d AMG Line Premium+ 2.0 Front.jpg, Mercedes-Benz E-Class (2017–present) File:2018_BMW_540i_in_white,_front_right.jpg,
BMW 5 Series The BMW 5 Series is an executive car manufactured and marketed by BMW since 1972, succeeding the New Class Sedans, and currently in its seventh generation. The 5 Series was initially available as a sedan, with a wagon/estate body style (marke ...
(2017–present) File:2021_Genesis_G80_2.5T_AWD_in_Uyuni_White,_front_right.jpg,
Genesis G80 The Genesis G80 ( ko, 제네시스 G80) is an executive sedan manufactured by South Korean luxury marque Genesis, which is owned by Hyundai Motor Company. The G80 model was previously introduced as the second-generation Hyundai Genesis model ( ...
(2016–present)


Luxury saloon / full-size luxury sedan

The next category of luxury cars is known in Great Britain as a "luxury saloon" or "luxury limousine," and is known in the United States as a full-size luxury sedan, large luxury sedan, or flagship sedan. It is the equivalent of the European F-segment and German Oberklasse segment. Many of these luxury saloons are the
flagship A flagship is a vessel used by the commanding officer of a group of naval ships, characteristically a flag officer entitled by custom to fly a distinguishing flag. Used more loosely, it is the lead ship in a fleet of vessels, typically the ...
for the marque and include the newest automotive technology. Several models are available in long-wheelbase versions, which provide additional rear legroom and may have a higher level of standard features. Examples of luxury saloons / full-size luxury sedans include the
BMW 7 Series The BMW 7 Series is a full-size luxury sedan manufactured and marketed by the German automaker BMW since 1977. It is the successor to the BMW E3 "New Six" sedan and is now in its seventh generation. The 7 Series is BMW's flagship car and is ...
,
Jaguar XJ The Jaguar XJ is a series of full-size luxury cars produced by British automobile manufacturer Jaguar Cars (becoming Jaguar Land Rover in 2013) from 1968 to 2019. It was produced across five basic platform generations (debuting in 1968, 1986, 1 ...
, Cadillac CT6, Genesis G90,
Audi A8 The Audi A8 is a full-size luxury sedan manufactured and marketed by the German automaker Audi Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its paren ...
, Mercedes-Benz S-Class,
Lexus LS The is a full-size car, full-size luxury car, luxury sedan (F-segment in Europe) serving as the Core product, flagship model of Lexus, the luxury division (business), division of Toyota. For the first four generations, all LS models featured V8 ...
, Porsche Panamera and Maserati Quattroporte. File:Mercedes-Benz W223 IMG 3970.jpg, Mercedes-Benz S-Class (2020–present) File:2019 BMW 740Li Automatic facelift 3.0.jpg,
BMW 7 Series The BMW 7 Series is a full-size luxury sedan manufactured and marketed by the German automaker BMW since 1977. It is the successor to the BMW E3 "New Six" sedan and is now in its seventh generation. The 7 Series is BMW's flagship car and is ...
(2015–present) File:Audi_A8_50_TDI_(D5)_–_Frontansicht,_24._Dezember_2017,_Velbert.jpg,
Audi A8 The Audi A8 is a full-size luxury sedan manufactured and marketed by the German automaker Audi Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its paren ...
(2018–present)


Ultra-luxury

Luxury cars costing over (as of 2007) can be considered as "ultra-luxury cars". Examples include the
Rolls-Royce Phantom Rolls-Royce has used the Phantom name on full-sized luxury cars over the past century: *Rolls-Royce Phantom I, 1925–1931 *Rolls-Royce Phantom II, 1929–1936 *Rolls-Royce Phantom III, 1936–1939 *Rolls-Royce Phantom IV, 1950&ndash ...
, Maybach 57 and 62, Hongqi L5, Bentley Mulsanne, Toyota Century, and Aurus Senat. High-end sports cars which are targeted towards performance rather than luxury are not usually classified as ultra-luxury cars, even when their cost is greater than . The history of a brand and the exclusivity of a particular model can result in price premiums compared to luxury cars with similar features from less prestigious manufacturers. Ultra-luxury cars are usually selected as the
official state car An official state car is a vehicle used by a government to transport its head of state or head of government in an official capacity, which may also be used occasionally to transport other members of the government or visiting dignitaries from ot ...
. File:Rolls-Royce Phantom VIII EWB Genf 2018.jpg,
Rolls-Royce Phantom VIII The Rolls-Royce Phantom is a full-sized luxury saloon manufactured by Rolls-Royce Motor Cars. It is the eighth and current generation of the Rolls-Royce Phantom, debuting in 2017, and the second launched by Rolls-Royce under BMW ownership. It ...

(2017–present) File:Bentley Mulsanne, GIMS 2019, Le Grand-Saconnex (GIMS1013).jpg, Bentley Mulsanne
(2010–2020)


Grand tourer


Luxury SUV/Crossover

Long before the luxury SUV segment was defined and became popular, the 1966 Jeep Super Wagoneer was marketed at the time as a fully equipped station wagon. It was the first off-road SUV to offer a
V8 engine A V8 engine is an eight-cylinder piston engine in which two banks of four cylinders share a common crankshaft and are arranged in a V configuration. The first V8 engine was produced by the French Antoinette company in 1904, developed and u ...
and
automatic transmission An automatic transmission (sometimes abbreviated to auto or AT) is a multi-speed transmission used in internal combustion engine-based motor vehicles that does not require any input from the driver to change forward gears under normal driving ...
along with luxury car trim and equipment. Standard features included
bucket seating A bucket seat is a car seat contoured to hold one person, distinct from a flat bench seat designed to fit multiple people. In its simplest form it is a rounded seat for one person with high sides, but may have curved sides that partially enclose ...
, a center console, air conditioning, a seven-position tilt steering wheel, a
vinyl roof Vinyl roof refers to a vinyl covering for an automobile's top. This covering was originally designed to give the appearance of a convertible to models with a fixed roof and eventually evolved into a styling statement in its own right. Vi ...
, and gold-colored trim panels on the body sides and tailgate. By the late 1970s, optional equipment included an electric sunroof. The 1978 Jeep Wagoneer Limited was the spiritual successor to the Super Wagoneer and was the first four-wheel drive car to use leather upholstery. The
Range Rover Range may refer to: Geography * Range (geographic), a chain of hills or mountains; a somewhat linear, complex mountainous or hilly area (cordillera, sierra) ** Mountain range, a group of mountains bordered by lowlands * Range, a term used to ...
was released in 1970 as a two-door vehicle for off-road durability with few "creature comforts." A four-door version was added in 1981, and the model was pushed upmarket in 1983 by introducing an automatic transmission (Chrysler's A727
TorqueFlite TorqueFlite (also seen as Torqueflite) is the trademarked name of Chrysler Corporation's automatic transmissions, starting with the three-speed unit introduced late in the 1956 model year as a successor to Chrysler's two-speed PowerFlite. In t ...
) as an option. The Range Rover had a long-travel coil-spring suspension and an aluminium V8 engine. In the mid-1990s, the SUV market expanded with new entrants. By the mid-1990s, the entry-level
Ford Explorer The Ford Explorer is a range of SUVs manufactured by Ford Motor Company since the 1991 model year. The first four-door SUV produced by Ford, the Explorer was introduced as a replacement for the two-door Bronco II. Within the current Ford light ...
and upscale Jeep Grand Cherokee were the market leaders for SUVs. The fastest-growing sector of this market was for the so-called luxury SUVs, which included the Jeep Grand Cherokee ... the Grand Cherokee's allure: "This vehicle is proof you can have a true off-road vehicle without giving up luxuries and amenities" with the Jeep providing a crucial new intangible factor for buyers—image. The SUV models generated higher profit margins than passenger cars, and car manufacturers began introducing new luxury SUVs during the late 1990s. SUVs such as the 1995
Lexus LX The is a full-size luxury SUV sold by Lexus, a luxury division of Toyota since January 1996, having entered manufacturing in November 1995. It is Lexus' largest and most expensive luxury SUV. Four generations have been produced, all based hea ...
, 1997 Mercedes-Benz M-Class, and 1998 Lincoln Navigator were the first SUVs produced by these luxury car brands. Some of these early luxury SUV models used
unibody A vehicle frame, also historically known as its '' chassis'', is the main supporting structure of a motor vehicle to which all other components are attached, comparable to the skeleton of an organism. Until the 1930s, virtually every car ha ...
construction, becoming part of the trend moving away from the
body-on-frame Body-on-frame, also known as ladder frame construction, is a common motor vehicle construction method, whereby a separate body or coach is mounted on a strong and relatively rigid vehicle frame or chassis that carries the powertrain (the en ...
construction traditionally used by off-road vehicles. During the mid-2000s, SUVs from luxury car brands grew by almost 40% in the United States to more than 430,000 vehicles (excluding SUV-only brands like Hummer and
Land Rover Land Rover is a British brand of predominantly four-wheel drive, off-road capable vehicles, owned by multinational car manufacturer Jaguar Land Rover (JLR), since 2008 a subsidiary of India's Tata Motors. JLR currently builds Land Rove ...
), at a time when luxury car sales suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30% of major luxury brands' U.S. sales were SUVs. Crossover SUVs became increasingly popular in the mid-2000s, and manufacturers also began to produce luxury versions of crossovers. The Lexus RX was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US. Some luxury crossovers are built on a platform shared with sedans or hatchbacks. For example, the Infiniti FX is based upon the same platform as the
Infiniti G35 The Infiniti G Line is a series of compact executive cars produced by Infiniti, a luxury division of Nissan, for the 1991–1996 and 1999–2016 model years. The first two generations of the Infiniti G (P10 and P11) were sedans based on the ...
sedans and coupes. While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, later crossovers, such as the Infiniti FX and BMW X6, have been designed with a sporting appearance. Despite the increased popularity of crossover models, traditional luxury SUVs remain in production. Examples include the
Lexus LX The is a full-size luxury SUV sold by Lexus, a luxury division of Toyota since January 1996, having entered manufacturing in November 1995. It is Lexus' largest and most expensive luxury SUV. Four generations have been produced, all based hea ...
,
Infiniti QX80 The Infiniti QX80 (formerly called the Infiniti QX56 until 2013) is a full-size luxury SUV marketed by Nissan's luxury division Infiniti. The first-generation QX56 was built in the United States, and is based on the first-generation Armada. T ...
, and Lincoln Navigator. Research data from the mid-2000s suggested that luxury SUV buyers did not consider traditional luxury cars (e.g. sedans and coupes), therefore the SUV is becoming the key to bringing new customers into luxury dealerships. Luxury car companies have increasingly introduced SUV or crossover models in the 2010s. For example,
Rolls-Royce Cullinan The Rolls-Royce Cullinan is a full-sized luxury sport utility vehicle (SUV) manufactured by Rolls-Royce Motor Cars as the brand's first all-wheel drive vehicle. It is named after the Cullinan Diamond, the largest gem-quality rough diamond ever disc ...
, Bentley Bentayga, Aston Martin DBX,
Maserati Levante The Maserati Levante (''Tipo M161'') is a mid-size luxury crossover SUV produced by Italian manufacturer Maserati at the Mirafiori factory in Turin since 2016. P> The Levante went on sale in Europe in May 2016, and in North America in September 2 ...
, and Lamborghini Urus. Ferrari has announced that they will release an SUV model
Ferrari Purosangue The Ferrari Purosangue (Type F175) is a high-performance SUV by Italian automobile manufacturer Ferrari that was introduced on 13 September 2022. It is Ferrari's first SUV and production 4-door. Name The Ferrari Purosangue is named after the h ...
in 2023. Some brands, such as Lincoln, have even moved to an all SUV and/or crossover lineup. File:Lamborghini Urus 19.09.20 JM (2).jpg, Lamborghini Urus
(2018–present) File:2018 Maserati Levante S Automatic 3.0.jpg,
Maserati Levante The Maserati Levante (''Tipo M161'') is a mid-size luxury crossover SUV produced by Italian manufacturer Maserati at the Mirafiori factory in Turin since 2016. P> The Levante went on sale in Europe in May 2016, and in North America in September 2 ...

(2017–present) File:Aston Martin DBX front.jpg, Aston Martin DBX
(2020–present)


See also

*
Car classification Governments and private organizations have developed car classification schemes that are used for various purposes including regulation, description, and categorization of cars. The International Standard ISO 3833-1977 ''Road vehicles – Type ...
*
Luxury goods In economics, a luxury good (or upmarket good) is a good (economics), good for which demand (economics), demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spend ...


References

{{DEFAULTSORT:Luxury Vehicle Car classifications