Global Luxury Car Coachbuilding Market - Drivers and Forecasts by Technavio

Technavio has published a new report on the global luxury car coachbuilding market from 2017-2021. (Graphic: Business Wire)

LONDON--()--Technavio analysts forecast the global luxury car coachbuilding market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global luxury car coachbuilding market for 2017-2021. The market is segmented based on geography, which includes Europe, North America, and ROW.

The market for luxury custom built cars is considered niche within the automotive industry, providing high value from low volumes. It is considered a trump card for OEMs in this intensely competitive industry. However, this segment of vehicles was under stress due to volatile economic environment globally over the past few years. The situation has drastically improved with OEMs targeting growth markets, such as China, India, and Turkey among others by offering a rich mix of product portfolio and establishing a strong dealer network.

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Technavio automotive research analysts highlight the following three factors that are contributing to the growth of the global luxury car coachbuilding market:

  • Traditional coachbuilders benefited from foreign direct investments
  • Increasing demand for custom, hand-built limited-edition luxury vehicles and classic cars
  • Established coachbuilders eyeing new luxury carmakers as potential customers

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Traditional coachbuilders benefited from foreign direct investments

The coachbuilding industry is thriving along with the rapidly progressing automotive industry. Italy has been a leading country in terms of the number of coachbuilding companies, with the likes of Pininfarina, Zagato, Bertone, Touring Superleggera, and various other well-known luxury car coachbuilders across the globe.

Siddharth Jaiswal, a lead automotive services research analyst at Technavio, says, “The coachbuilding industry took a massive hit during the recent global recession due to which storied marques, such as Bertone disappeared under the crushing pressure of debt and an automotive industry that was becoming more self-sufficient. But the coachbuilding industry today, almost a decade after the global recession, is making a considerable comeback.”

Increasing demand for custom, hand-built limited-edition luxury vehicles and classic cars

The demand for the retro inspired sports cars has been increasing in the recent years due to the thriving financial markets and booming economies. For instance, David Brown Automotive designed the Aston Martin DB5-inspired Speedback GT, which caught the attention of several automotive enthusiasts in the recent Geneva Motor Show in March 2017. The company also started selling its retro inspired mystery sports car.

“The retro inspired cars will incorporate traditional premium quality coachbuilding with modern hi-tech technologies. The project aims to impress the vintage car enthusiasts who are also tech savvy. This increased appetite for the retro inspired sports car has been brought back by a new generation of automotive enthusiasts. This shifting tide of values and tastes has pushed the need for more classic, custom-made, and hand-built cars, which is expected to drive the market for the coachbuilding companies in the coming years,” adds Siddharth.

Established coachbuilders eyeing new luxury carmakers as potential customers

In general, the coachbuilders do not sell their designs and creations directly as that is done by the partners (automotive OEMs). For instance, Ferrari Sergio, which was designed by Pininfarina in partnership with Ferrari was sold by Ferrari brand. Major automotive OEMs, such as Ferrari, Alfa Romeo, and Aston Martin are mostly moving their design and development capability in-house and are concentrating more on their own brand, rather than coming up with a car co-branded with a design firm.

The new comers in the luxury markets can benefit heaps from the experience and expertise of the coachbuilders in the automotive industry. At the same time, this can be a win-win situation for the coachbuilders as well. Hybrid Kinetic Group has a strategy with its H600 electric car to start with the Chinese market in 2020, then move to the US and then the rest of the world. The increasing partnerships of coachbuilders with the newcomers in the luxury car market is expected to drive the global luxury car coachbuilding market during the forecast period.

Top vendors:

  • Carrozzeria Touring Superleggera
  • Italdesign Giugiaro
  • Pininfarina
  • Zagato Milano

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 361 1100
UK: +44 203 893 3200
www.technavio.com

Release Summary

Technavio analysts forecast the global luxury car coachbuilding market to grow at a CAGR of more than 7% during the forecast period, 2017-2021.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 361 1100
UK: +44 203 893 3200
www.technavio.com