The most recent South African Wealth Report, published by international market research firm New

World Wealth, examines developments among the richest residents of the nation.

The research spent a significant amount of time examining how these High Networth Individuals
(HNWIs), which are those with net assets of $1 million or more, spend their money on things like real
estate, fine art, and clothing.

Nonetheless, cars continue to be one of the most popular purchases, with South Africa's wealthiest
individuals splashing out on a number of high-end automobiles.

The most recent South African Wealth Report, published by international market research firm New
World Wealth, examines developments among the richest residents of the nation.

The research spent a significant amount of time examining how these High Networth Individuals
(HNWIs), which are those with net assets of $1 million or more, spend their money on things like real
estate, fine art, and clothing.

Nonetheless, cars continue to be one of the most popular purchases, with South Africa's wealthiest
individuals splashing out on a number of high-end automobiles.

The report noted that luxury SUVs are especially popular with SA’s super-rich, primarily because of
their:

 High ground clearance (SUVs are better at navigating potholes and rough roads than sports
cars and opulent sedans);
 Safety aspects
 Space for children
 Holiday utility: off-roading and game reserves

https://lowvelder.co.za/wp-content/uploads/sites/44/2022/02/Sales-by-channel.jpg

"Despite the weak status of the domestic economy, the South African automotive sector is
nonetheless strong. With 41 382 units sold overall in January, sales were up 19.5% from the same
month a year earlier. Mark Dommisse, Chairperson of the National Automobile Dealers' Association
(NADA), commented on the January sales figures released by naamsa I The Automotive Business
Council. "Franchise dealers were responsible for 84.2% of these sales, giving them a flying start to a
year that promises to build on the upward trend experienced in 2021.
In 2021, luxury cars generated 1% of global market revenue. Compared to market share in 2016, this
represents a growth of -0.2%. United Arab Emirates (7.5%) and Norway (2.4%) earned the biggest
revenue share of sales of luxury cars in 2021. Mercedes-Benz had the strongest sales in the Luxury
Vehicles market in 2021 ($4 billion in revenue), followed by BMW ($2.8 billion) and VW ($2 billion).

The distribution of wealth within a nation or area has an impact on the luxury car market, which
typically follows broader economic trends. This implies that revenue is impacted by recessionary
periods in terms of sales. Also, owning a luxury automobile is regarded as a status symbol, and
because they are expensive, there is a limit on who can afford them and how many may be
purchased. Mercedes-Maybach, Porsche, Rolls-Royce, Bentley, Cadillac, and Lincoln will continue to
dominate this market's sales.

The luxury automobile market group includes passenger vehicles with a passenger/cargo volume
greater than 3.4 m3, an average footprint of roughly 5m2 (54 ft2), and an average mass of around
2200kg (4850lbs) (120 ft3). The high cost of these market models is another attribute. There are
countless businesses that just manufacture.

Background: Manufacturers have offered their premium models to the higher economic class for as
long as there has been an automobile industry. When Japanese manufacturers Honda, Toyota, and
Nissan introduced their respective luxury brands Acura, Lexus, and Infinity in the 1990s, the market
structure that had previously been controlled by European and American businesses underwent a
substantial transformation.

The market for luxury cars is often quite sensitive to recessionary situations and is heavily impacted
by the distribution of wealth within a nation or area. Audi A8, BMW 7 Series, Jaguar XJ, Mercedes-
Benz S-Class, and Porsche Panamera are some examples of models.
with being included on the "Best Global Brands 2017" list. Without a question, Mercedes-Benz has a
strong brand equity.

Brand Recognition

According to a study, when it comes to promoting luxury automobile brands, Mercedes-Benz is in

the lead. This demonstrates the amount of awareness that they may have attained after years of
effective advertising. As it is one of the most well-known international brands, this speaks to the
brand's global recognition. It is listed as the 17th most valuable brand in the world, demonstrating
the amount of global recognition it has attained.

brand fidelity

Mercedes-Benz has undoubtedly been successful in retaining the loyalty of its clients given how long
it has been a part of the business. The business has also been attempting to win customers' loyalty
by introducing a number of cutting-edge items that assist increase brand value and keep consumers
engaged with the brand. Moreover, because Mercedes-Benz is a luxury brand, people want to be
linked with the brand. Mercedes offers a number of loyalty programs to help with this. In other
households where the same brand is used for years, Mercedes has also become something of a
tradition.

Brand Image

Mercedes-Benz has consistently marketed itself as the opulent, pricey, premium brand that caters to
a certain niche population. Customers want to be linked with the brand because they believe that its
exclusivity fits with their own personalities. This exclusivity has become their brand identity.
Customers view the brand in this way, and this is exactly how the brand intended to be depicted.

Brand Asserts

Their brand equity is now one of the strongest, but other that, its production and distribution
network is widespread over practically all of the world. Mercedes-Benz, which has established itself
in the market, views their reputation as their most important claim and measures the value of their
brand.

Brand Elements

The logo, which can be found on all of Mercedes-goods Benz's and in brand endorsements, is one of
the company's strongest branding components. Customers and even those outside of their target
market may recognize their brand.

Brand associations

If we discuss some of the terms that consumers associate with Mercedes-Benz, they include phrases
like opulent, exclusive, premium quality, expensive, comfortable, and classy. These are the
characteristics that Mercedes has long been identified with through their own advertising efforts,
and today's consumers also connect the brand with those characteristics. Many of these advantages
demonstrate Mercedes' strong brand equity.
REFERENCES

1.Mercedes-Benz shows strong growth in brand value: Mercedes-Benz once again the only European
brad to make the top 10 “Best Global Brand 2017”. Retrieved March 17, 2018
fromhttp://media.daimler.com/marsMediaSite/en/instance/ko/Mercedes-Benz-shows-strong-
growth-in-brand-value-Mercedes-Benz-once-again-the-only-European-brand-to-make-the-top-10-
Best-Global-Brands-2017.xhtml?oid=29629638

2.WHEN IT COMES TO LUXURY CAR ADVERTISING, MERCEDES-BENZ LEADS THE PACK. Retrieved
March 17,2018 fromhttps://phoenixmi.com/learn/comes-luxury-car-advertising-mercedes-benz-
leads-pack/