A few qualities of the vehicles industry incorporate prevalent quality, brand recognition, and is said to have high pay versatility of interest. As individuals get to be wealthier, they have a tendency to purchase more valuable and luxurious products. In any case, this also implies that as the wealth or individual possession declines, as does the interest for these cars. The luxurious cars can be considered as a symbol of wealth.
Eye-getting usage of their items by respectable figures in the public eye prompts expanding requests for luxury cars, and it is a growing industry with the worldwide extravagance merchandise business sector developing 9% for every year. These consumers purchase their items for fulfillment and to support their respect toward oneself instead of for ease or solace. In spite of the fact that a contention can be made is that fulfilling their respect toward oneself issues comforts them or provides for them comfort (Han, Jee, Nunes, and Drèze 20).
The luxurious car is under exceptional change and at diverse levels. For example, Toyota cars with its split personality, the stiff competition in the luxury car industry is half strong and intense. Competition is genuinely solid, yet not serious at the top of the line level for flagship store and full-priced stores. There keeps on being a growing demand in emerging markets and an increase in wealth which makes competition less savage. The interest for luxury cars in developing markets keep on growing particularly in UAE because of the development of the working class. With the developing requests for luxury cars in UAE, automotive industry members ought to be fulfilled enough not to dispatch any real hostile systems which could prompt striking back.
One of the aggressive constraints that have an incredible impact on luxury car industry engaging quality is the risk of new participants and that it is so tricky to develop a brand name that can rival any semblance of BMW, Mercedes-Benz, Lexus, and Audi. It takes profound monetary pockets and incredible duty to make extravagance picture with the well-known brand and predominant quality. As a result, it is very difficult for new companies to gain market share and exposure. Luxury cars are known for their better quality and to some individuals, the status that they convey. New companies must form this status from the beginning, which can demonstrate difficulties without sufficient assets.
Another competitive factor can be a strong bargaining power with suppliers. A high-end car manufacturer might want to be interfaced to the luxury brand names e.g. Lexus and Audi. The automotive industry members have over suppliers is supportive of the internationally known luxury brand which is known to create quality products (Theo, et al,. 240).
In the other hand, some approaches, advancement and promotion technique set by the manufacturers are not suitable in UAE’s automobile industry, for example, one of Ferrari’s arrangement is that after the client purchase a Ferrari car the distribution ought to open a bottle of champagne for the purchaser, yet this can’t be applicable in UAE market, in light of the fact that the residents of UAE are Muslim and alcohol is banned in Islam. Some policies tend to discourage buyers since it might be too harsh or too procedural.
Han, Young Jee, Joseph C. Nunes, and Xavier Drèze. “Signaling status with luxury goods: the role of brand prominence.” Journal of Marketing 74.4 (2010): 15-30.
Lieven, Theo, et al. “Who will buy electric cars? An empirical study in Germany.” Transportation Research Part D: Transport and Environment 16.3 (2011): 236-243.