Did Luxury Marques Make a Comeback in 2013?

Posted on 22 January 2014 by Tony Santos

Royce

With the luxury-car market having suffered a significant downturn since the beginning of the recession, cheap tyre provider Click on Tyres takes a look back at 2013 to see how the year faired for some of the biggest luxury brands:

As the UK was declared as the fastest growing western economy in the fourth quarter of 2013 by the Institute of Chartered Accountants in England and Wales (ICAEW), it seems that the turnaround has also had a positive impact in the luxury car industry, with record sales reported across the board.

In fact, Rolls Royce has reported that it delivered no less than 3,630 cars in 2013, a 1.5% increase on 2012 figures.

Chief executive, Torsten Muller Otvos told the BBC that the company had enjoyed ‘a strong year’ and had been able to maintain its position at the top of the super-luxury market.

Interestingly, strong sales were also reported in China, where Rolls Royce sales rose by 11% last year, though this is dwarfed in comparison to a 17% rise in the Middle East.

Due to demand, the manufacturer was able to employ an additional 100 workers in 2013 in the UK alone.

Rolls Royce however, was not the only luxury brand to enjoy an increase in sales however, as in September of last year, Jaguar Land Rover also reported record sales, having sold 43,181 vehicles that month.

This brought sales up to 312,843 for the first nine months of the year, enabling the once struggling manufacturer to finish 2013 with just over 350,000 vehicles sold, accounting for 80% of Jaguar Land Rover’s total sales worldwide.

As with Rolls Royce, Jaguar Land Rover also experienced strong sales abroad where volumes increased by 42% in India and Germany and the US.

The manufacturer also brought on an extra 2,000 people to meet customer demand.

Tony Burke, Unite Union’s assistant general secretary said:

“Jaguar Land Rover is a remarkable manufacturing success story,”

“The company faced serious problems prior to 2008 but our members in Unite and the company worked together to turn JLR’s fortunes around. The manufacturer’s fantastic performance is testament to the workforce.”

But how did sales stand overall in 2013?

Although no less than five years ago, the industry bore the brunt of the biggest financial crises in recent history, it seems that the market has finally worked its way to recovery.

Besides the aforementioned brands, Audi, Volvo, Mercedes-Benz and BMW all reported significant growth throughout all four quarters, enjoying highest UK sales since 2007.

In fact, according to The Society of Motor Manufacturers and Traders (SMMT), 2.26 million vehicles were registered in 2013, a 10.8% rise on 2012; marking the 22nd successive month of sales increases.

Howard Archer, Chief UK and European economist at HIS Global Insight said:

“The strong increase in private car sales in December indicates that demand for cars is holding up well despite consumers’ purchasing power being squeezed by inflation persistently running well above earnings growth.”

With the news that consumers are becoming more confident, the industry is hoping that the economy holds up well throughout 2014 and beyond.

Categorized | Car News

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