Prestige-car sales show resilience
Sales of new luxury and sports cars in SA largely held firm in 2018 despite a slowdown in overall vehicle sales, and some observers believe the prestigecar market looks set to grow in the face of consumer belttightening in other segments.
Some are more positive than others. Driving a growth sentiment is an enormous shift in luxury consumerism, says Marc de St Pern, operations manager for European Automotive Imports SA, SA’s Maserati importer.
“A report published by Market Research Future looking at global luxury vehicle market analysis for 2018-2023 estimates that the luxury vehicle market will grow at an annual rate of 35% over the next four years,” says Pern.
“While luxury cars are considered status symbols, many customers are now buying these vehicles to express individuality,” he says.
Spending power in the prestige-car market showed a lot of resilience in 2018 in the face of a hike in the maximum ad valorem tax from 25% to 30%, a luxury tax that works on a sliding scale and has a significant impact on higherpriced vehicles.
The ad valorem increase was part of a triple whammy to hit local consumers in 2018 along with a 1% VAT increase to 15% and a weakening rand.
Brands such as Bentley, Ferrari, Rolls-Royce and Porsche nevertheless all fared better in 2018 than the year before. Others, such as Maserati, McLaren and Aston Martin, showed less resilience.
Porsche remained the volume player in the sports-car market, selling 1,334 cars in 2018, a 3.3% rise over the 1,292 units it moved in 2017. Sales were boosted by the introduction of the newgeneration Cayenne, but Porsche expects a flat market for 2019 despite the introduction of the newgeneration 911 in May.
“The new Macan is sure to perform well in the luxury compact SUV segment,” says Christo Kruger, spokesperson for Porsche importer, LSM Distributors. “The Panamera GTS is an eagerly anticipated addition to the current Panamera range, offering more emotion and power. Other highlights will be the introduction of the new Cayman GT4 and Boxster Spyder.”
LSM Distributors also expects a strong year for Lamborghini, the Italian sportscar brand for which it took over the importation rights from Imperial Group in 2018.
“We are expecting a sales increase in 2019 with the Lamborghini Urus as well as the recently revealed Huracan Evo. The latter is anticipated for local market introduction around August this year,” says Kruger.
The third brand in the LSM Distributors stable, Bentley, is flying high and sold 82 units in 2018 20% growth over 2017 that was aided by the introduction of the new Bentayga SUV.
Bentley expects a flat market for 2019, saying that currency fluctuations and economic conditions are always challenging, but will launch its new Continental GT Convertible and Mulsanne WO Edition to mark the brand’s centenary year. A new Bentley dealership was recently opened at the V&A Waterfront in Cape Town to serve that city’s clientele.
Daytona, local importer of Rolls-Royce, McLaren and Aston Martin, didn’t provide sales figures but reported that 2018 was a tougher year for retail and required far more intervention from the sales and marketing teams to try to achieve sales targets.
“In some instances, like with Rolls-Royce for instance, targets were overachieved while with other brands it was far harder to try to exceed target,” says Grant Dryden, GM of Daytona.
He reports that he’s already seen an increase in sales and inquiries in 2019.
“It is clear that market confidence has returned and people are ready to purchase again. We definitely expect a better 2019 than 2018 and we firmly believe that we will meet all targets and, in some cases, exceed them.”
Daytona has backed up this confidence by building a new 8,000m2 showroom in Melrose Arch in Johannesburg to sell and service its three brands along with Pagani, the ultraexclusive Italian supercar marque that was recently added to the portfolio.