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The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted

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Luxury Car Trends for 2025: What’s Hot and What’s Not

12th November 2024

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The luxury car market is about to undergo a transformation like never before. From cutting-edge technology to sustainable materials, 2025 promises to be a landmark year for luxury vehicles.

We look at the luxury car trends that we’re most excited to see.

The Rise of Electric Luxury Vehicles

Electric vehicles (EVs) are no longer just a niche market; they are becoming a central focus for luxury car manufacturers. Brands like Tesla, Mercedes-Benz, and BMW are leading the charge with high-performance electric models that offer both luxury and sustainability.

In 2025, expect to see more electric luxury SUVs, sedans, and even sports cars. These vehicles will not only feature extended range and faster charging times but also come equipped with the latest in autonomous driving technology.

New vehicles we’re looking forward to include:

Range Rover Sport Electric

Scheduled for release in 2025, the electric version of the Range Rover Sport is set to make a significant impact in the luxury electric vehicle market. This model will be positioned just below the full-size Range Rover Electric, offering a more compact and agile alternative to its larger counterpart. Despite its reduced size, the electric Range Rover Sport will not compromise on the brand’s hallmark features of luxury and performance. It will be designed to cater to those who seek the prestige and capabilities of a Range Rover but in a more accessible and budget-friendly package. This new model will likely attract a broader audience, appealing to both traditional Range Rover enthusiasts and new customers interested in sustainable luxury.

BMW ‘Neue Klasse’

Neue Klasse and the larger Neue Klasse X are a pair of electric cars that are generating significant excitement in the automotive world. The Neue Klasse is anticipated to be a sleek and sophisticated saloon car, comparable in size to the well-regarded 3-Series, offering a blend of elegance and performance that appeals to discerning drivers. On the other hand, the Neue Klasse X is set to make its mark as a robust and versatile SUV, catering to those who seek both luxury and practicality in their vehicle choice. Both models are expected to feature a cutting-edge fast-charging 800-volt electrical system, which promises to significantly reduce charging times and enhance convenience for users.

Lotus Emeya

The Emeya by Lotus, is designed to compete head-to-head with the likes of the Porsche Taycan and Audi e-tron GT, two of the most esteemed electric vehicles in the market. With a price range starting from £94,950 and reaching up to £129,950 for the top-tier R variant, the Emeya is positioned as a premium offering in the electric vehicle segment. It boasts an impressive maximum range of 379 miles, powered by a robust 102 kWh battery pack. This substantial range ensures that drivers can embark on long journeys with confidence, knowing they have the endurance to reach their destinations without frequent recharging stops. Moreover, the Emeya sets a new benchmark in charging efficiency, featuring a maximum charge rate of 350 kW. This groundbreaking capability makes it the fastest-charging production electric vehicle available, allowing the battery to be replenished from 10 to 80 percent in a mere 18 minutes!

Sustainability Takes Center Stage

Sustainability is no longer an option but a necessity in the luxury car market. Consumers are increasingly demanding eco-friendly vehicles, and manufacturers are responding by using sustainable materials such as recycled metals, vegan leather, and natural fibers.

Moreover, luxury brands are investing in green manufacturing processes and carbon-neutral production lines. This trend is expected to grow exponentially by 2025, making sustainability a key selling point for high-end vehicles.

For instance, Bentley Motors’ Crewe facility is the first luxury automotive factory in the UK to achieve carbon neutrality. The company has implemented several measures to cut down its carbon emissions, such as installing solar panels on the factory roof and in a solar carport, utilizing renewable electricity, purchasing carbon credits to offset emissions, and pledging to achieve full carbon neutrality by 2030.

 

Mercedes-Benz has developed a comprehensive sustainability strategy known as Ambition 2039. This forward-thinking initiative is dedicated to addressing climate change and environmental concerns by transforming the company’s entire value chain. The strategy outlines a clear roadmap for achieving carbon neutrality across all Mercedes-Benz passenger car models by the year 2039. To reach this ambitious goal, the company is focusing on several key areas, including the transition to electric mobility, the use of renewable energy sources, and the implementation of sustainable production practices. Additionally, Mercedes-Benz is committed to reducing its carbon footprint by optimizing logistics and supply chains, as well as increasing the use of recycled and sustainable materials in vehicle manufacturing.

Aston Martin has developed a comprehensive sustainability strategy known as Green, which is dedicated to achieving carbon-neutral manufacturing across all its operations. This ambitious initiative encompasses a wide range of environmentally conscious practices aimed at reducing the company’s carbon footprint and promoting sustainable development. The Green strategy involves the integration of renewable energy sources, such as solar and wind power, into Aston Martin’s production facilities, thereby minimizing reliance on fossil fuels. Aston Martin is also focusing on the use of sustainable materials in its vehicles, prioritizing recycled and eco-friendly components to further reduce environmental impact.

Technological Innovations Redefining Luxury

Technological advancements are set to redefine what it means to drive a luxury car. Features like:

  • Augmented reality dashboards. AR technology in car dashboards aims to superimpose digital information onto the real world, allowing essential data and navigation instructions to be displayed directly in the driver’s field of vision.
  • Advanced driver-assistance systems (ADAS) are technological features aimed at enhancing vehicle safety. These systems are divided into two primary categories: passive and active. Passive ADAS features alert drivers to potential hazards, while active ADAS takes it a step further by actively intervening to prevent accidents.

Additionally, expect to see innovations in comfort and convenience, such as adaptive lighting, climate control systems, and even biometric security features. These technologies will not only enhance the driving experience but also set new benchmarks for what consumers can expect from luxury vehicles.

Customization and Personalization Trends

 

The desire for individuality is driving a trend towards customization and personalization in the luxury car market. Manufacturers are offering more bespoke options, allowing customers to tailor everything from the exterior color to the interior finishes and tech features.

For example, Bentley provides the Mulliner Personal Commissioning program, enabling customers to personalize every detail of their vehicle, from the interior to the exterior. Bentley cars are meticulously handcrafted by skilled artisans, and clients can opt for unique features such as bespoke embroidery.

Bugatti also provides the Sur Mesure program, enabling customers to completely personalize their vehicles. One collector commissioned a car adorned with hand-drawn sketches, a process that took two years to complete.

By 2025, the trend will likely expand to include more advanced personalization options, such as AI-driven customization that adapts to the driver’s habits and preferences. This will make each luxury vehicle a unique reflection of its owner.
 

Market Factors Influencing Luxury Car Sales

Several market factors will influence luxury car sales in 2025. Economic conditions, regulatory changes, and shifts in consumer preferences will all play a role. For example, stricter emissions standards could accelerate the adoption of electric luxury vehicles.

Furthermore, global supply chain issues and geopolitical tensions could impact production and pricing. However, the growing wealth among younger demographics and emerging markets will likely fuel demand for high-end cars, making the luxury segment more resilient than ever.

If you’re looking for your 2025 car, contact our prestige finance experts to discuss your finance options.


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