Luxury Cars Will Account for 50 Percent of U.S. Growth

Light vehicle production in North America is expected to reach a staggering 19 million units by 2022. The forecast comes from Mike Jackson, Senior Manager of Vehicle Forecasting at IHS Automotive. The surprising nugget of info for us is that luxury vehicle production will be a big part of the rise. According to Jackson, it will grow by roughly 1 million units, which signifies a heady increase of 50% overall. The move means that consumers will spend more on a new car, but more importantly, automakers will see a big increase in competition as they scramble to produce models with more value.

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What Does Luxury Mean?

Luxury cars today are seeing more competition than ever before. And we mean ever. Take a 2015 Hyundai Sonata. It arguably offers one of the best values in the midsize sedan class. But if you take a closer look, it teeters on the tightrope of full-blown luxury. Select the Limited trim level, and it comes with a slick integrated navigation system, butter-soft leather seats and a bargain basement price of $27,350. Savvy CarsDirect Pricing Insider readers will know that Hyundai offers solid incentives this time of year. Factor in those incentives, and you'll shave off another $2,000 in rebates*. The established luxury marques rarely offer rebates, hurting perceived value.

More. We Want More.

Want more? No problem: Hyundai offers a high-content option package that's big on value. Un-ceremoniously dubbed Option Group 06, it includes a host of safety upgrades for around $1,400. Step up Option Group 05 and you get air-conditioned and heated seats, heated steering wheel and a killer Infinity 9-speaker system complete with subwoofer that's all controlled by a massive high-resolution 8-inch color touch screen monitor. Here's a quick comparison of the stiff competition:

Increased Competition

Some of you might feel that the comparison above is not a fair one. And hey, everyone's entitled to their opinion (feel free to leave yours in the comments at the end of this story). The merits and attributes of each model can be argued endlessly. That's why we have the internet. Yeah, the BMW feels sportier. The Mercedes will get more oohs and aahs at your local Fresh & Easy. But each model features a 4-cylinder engine. Each has four doors and similar fuel economy. But one thing that's almost indisputable is the price. The Sonata will leave you with a cool $10,000 in your bank account.

So how will luxury automakers compete, and how on Earth will they hit 1 million in sales by 2022? Well, they'll have to roll up their french cuffs and try harder to differentiate their models. More power, more innovation, more fuel economy and more styling. And they will most certainly have to boost value.

What It Means For You

In the end, this means we as consumers win yet again. As competition in the overall automotive landscape increases, so do the chances of you getting a 245-horsepower, 32-mpg, 6-speed 4-door sedan for around $32k. Wait, it's already happening.

*Incentives apply to residents in Southern California and will differ from region-to-region. They amount is also subject to change. Current offer will expire March 31, 2015.