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Model S sales versus other large luxury vehicles

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I'd love to hear what your prior car was, though. I tried to find and link the thread that was titled something like "What car will your Model S be replacing" but I couldn't locate it... Google Fu failing me today it seems.

The vehicle my new S 90D will be replacing is a 30+-year-old Volvo 740 station wagon, for which I was the original owner. Looks like new and I get unsolicited comments and offers for it all the time. At the moment, it appears that it may be sold to a local Tesla service center mechanic. You can read a bit more about it here:
Volvo Car Company - what's your view/opinion?
 
The vehicle my new S 90D will be replacing is a 30+-year-old Volvo 740 station wagon, for which I was the original owner. Looks like new and I get unsolicited comments and offers for it all the time. At the moment, it appears that it may be sold to a local Tesla service center mechanic. You can read a bit more about it here:
Volvo Car Company - what's your view/opinion?

You beat me. My Buick was only 24 years old. ;)

I just managed to sell it to an enthusiast last week. It had been sitting in the driveway for 6 months. I had a sentimental attachment, but keeping it in sellable condition in the winter was getting tough and I really needed to close that chapter. It was a nice car, but I was never going to drive it again.
 
Well, here is the 2016 year end recap. Plus the first month of 2017 now. Note that I have removed the Mercedes CLS going forward since the reported numbers are spotty. I'll leave the historical data in though. The 2016-17 totals at the right will only reflect year to date.

BMW 7-Series made a nice comeback. Audi and Mercedes continue their descent into irrelevance. The big picture from 2014 through 2016 is the utter dominance by the Model S of the entire category. Model S had 16.6% share in 2014. In 2016, the Model S share went up to 33.2%. Doubled the share in 2 years. Shrinking market for large luxury cars, with the Model S getting a larger share over time.

Beautiful :)

 
One thing I was wondering was how big this market niche was before Tesla was in it? How much is Tesla pirating from other cars in the niche and how many people are they bringing in who otherwise would never buy a car like that. I know I would never would have and still never would give a second thought to any other car on that list. Before I discovered the Model S I was looking at Ford Tauruses and Subaru Outbacks.
 
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lklundin, I'll have to see if I can do that. I have tried before and wasn't able to find a way to do that with the image being embedded like you see when I create a direct link to the picture. And I have a CS degree too ;)

February results are in the bank. Here they are:



One thing I noted when I was pulling together the sales numbers is that the MBZ S-Class is on the brink of dropping below 1,000 units per month. The last time these sold fewer than 1,000 units was back in September 2013.

I haven't yet done the totals for total US sales of all vehicles, but those have been trending at all time highs. And for those interested, someone in my Model 3 tread discussing sales of Model 3 competitors posted some links to individual vehicle world wide sales. Good info to see whether the declining S-Class sales are specific to the US, or a larger world wide trend.

RT
 
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One thing I was wondering was how big this market niche was before Tesla was in it? How much is Tesla pirating from other cars in the niche and how many people are they bringing in who otherwise would never buy a car like that. I know I would never would have and still never would give a second thought to any other car on that list. Before I discovered the Model S I was looking at Ford Tauruses and Subaru Outbacks.

yeah, that's definitely one of the complicating factors. While the Model S is definitely stealing some high end luxury sales, it's really pulling from a broad range of market segments.
 
What about people like me that would only consider EVs. No real luxury competition present and few immediate plans. Tesla was my only option. I could afford any of those other cars but never even considered them or test drove them. Icky.
 
What about people like me that would only consider EVs. No real luxury competition present and few immediate plans. Tesla was my only option. I could afford any of those other cars but never even considered them or test drove them. Icky.

This is one of the few places out there where the Model S is compared with its price peers, most articles and such think that Model S buyers are cross shopping with other EVs like the Fiat 500e, Nissan Leaf, and especially the Chevy Bolt. For Eco buyers, there probably is some of that, but Tesla's ultimate success depends on the public seeing Teslas as a better car, not a better EV.

The problem is the Model S doesn't compare well to any car on the market today. I never gave a moment's thought to another EV. Because of my long legs, a small car is out. I also needed something capable of getting from the Portland area to California without huge hassles. That rules out every EV except the Model S and X (though the Model 3 will probably be OK). I was looking at other large cars like the Taurus and LaCrosse. I also gave some serious thought to the Subaru Outback. I never gave any consideration to any other car on the luxury sedan list.

The midsized sedan market is much bigger than the large sedan market. With my long legs my situation is unusual. I have been predicting all along that the Model 3 will likely be listed as a luxury midsized and compared to the BMW 3 Series and other similar cars, but I think it will really be competing with the Ford Fusion, Chevy Malibu, Honda Accord, and Toyota Camry. It will be a matter of education. I have friends who has a leased Accord right now, but after experiencing my Model S, they are seriously considering a Model 3. As people get a chance to drive their neighbor's or co-worker's Model 3, they will count their pennies and see if they can stretch their budget from their current midsized sedan to a Model 3 with their next purchase or lease. And a lot will.

The Model S took away a sale of a large sedan or an Outback from an ICE maker in my case. But those losses are small with the Model S's volume. Subaru makes around 300,000 Outbacks a year. Loss of a couple of sales to Tesla are down in the noise. When people are cross shopping the best selling sedans in the US market with the Model 3, which will be available in volumes similar to other mass produced cars, the ICE makers will suddenly be worried. A 10% decline in Camry sales as people move over to the Model 3 is something that will make Toyota nervous.

The German car makers are taking Tesla more seriously than anyone else because they have already seen what the Model S can to to their sales. The market segment has grown since the Model S entered it, but their sales have mostly declined. Those companies can survive taking a bit of a hit on sales of their top end models, those cars are the "gravy" profits, but they can't afford to have the Model 3 destroy their midsized car sales too.

lklundin, I'll have to see if I can do that. I have tried before and wasn't able to find a way to do that with the image being embedded like you see when I create a direct link to the picture. And I have a CS degree too ;)

Photobucket isn't really working very well with Firefox these days. I can't get your images to display. You can do a link to just an image here by clicking on the icon in the editor that looks like an image, just to the right of the smiley face, and insert the URL to an image.
 
@wdolson FWIW I'm 6'1", my wife is 6'1" and my brother is 6'3" and we all fit nicely in a leaf. The S is not much bigger in the passenger cabin and the legroom is comparable.
I agree with your overall point though. Tesla is unique. I'd recommend a leaf if you didn't have that long distance requirement. My brother has a chademo port for his leaf. Mine not so much. I've only gone 130 miles from home in that car. Charging, other than at a destination, is a waste of time.
 
@wdolson FWIW I'm 6'1", my wife is 6'1" and my brother is 6'3" and we all fit nicely in a leaf. The S is not much bigger in the passenger cabin and the legroom is comparable.
I agree with your overall point though. Tesla is unique. I'd recommend a leaf if you didn't have that long distance requirement. My brother has a chademo port for his leaf. Mine not so much. I've only gone 130 miles from home in that car. Charging, other than at a destination, is a waste of time.

I'm only 6'2", but I'm all legs. A lot of cars you'd think would work are not suitable for long drives. A week ago I got a Nissan Altima from the Tesla service center and that was so bad I could feel it in just the drive home (about an hour). Ford Fussions are right on the edge of comfort, Toyota Avalons don't have enough legroom. The only cars I've been in that had too much legroom were a Subaru Forester, a Buick LaCrosse, and the Model S. A lot of SUVs would probably be OK too because the seats are usually taller, but I don't really like SUVs. The Forester had the extra room because the seats were taller.
 
March results are now all in:

2017_03%20Model%20S_zpsa8ubxm9m.jpg


The S is holding up well versus the other luxury cars. Benz S-Class off the usual 12-14% it has been the prior couple years. One interesting thing to note: The overall U.S. light vehicle sales are starting to turn down, the first time since the recession. You probably have seen the headlines. I don't have my spreadsheet handy where I track that, but off the top of my head maybe the 12-month rolling sales dropped from like 17,500,000 down to 17,100,000. I'll try and update this tomorrow when I get the actual data in hand.

Not sure how an overall drop in sales would affect luxury car sales. Maybe not too much I'm guessing.

RT
 
A bit of lower car sales is an increase in people choosing to walk or ride bicycles for transportation. Millennials for instance are much less likely to get a drivers license and are doing so much later. They are even more likely to forego purchasing a car and to use other forms of transportation, and carshare when necessary.

I do also wonder what impact EV's are having on sales. Are people unsure of the future so are more likely to hold on to their current car a bit longer than normal to see how things play out?
 
I agree Millennials choosing not to get a driver's license and using other forms of transportation is contributing to the decline in vehicle ownership.

Anecdotally I've also seen people have fewer low use vehicles. Back when fuel prices were consistently higher, I knew more people who had a truck and only used it for hauling their trailer or other limited hauling uses then had two cars for daily use (if a couple). Now most people I know who own trucks, one person in the household will drive the truck daily as their commuter. I've seen a few households where all they own are trucks or truck-like vehicles.

With gas prices where they have been for the last few years, it's probably cheaper to pay registration and insurance on fewer vehicles, even if one gets terrible gas mileage.
 
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My millennial kids all have cars but on Long Island NY it's needed. My brother in-law moved to Manhattan, sold his car and uses the Zip car. Europe and big cities I think will have a reduction in vehicles in general in the near future. The car sharing business gets bigger everyday.
 
April numbers are in:

2017_04%20Model%20S_zps3zqmg5ne.jpg


Ongoing weakness in the luxury segment. Also, now confirmed that the trend in light vehicle sales is indeed down. The Panamera must have come out with a refresh. I'll let others more knowledgeable confirm that. The S-Class is making a bit of a comeback too.

RT