The expansion of luxury lines has no doubt been a huge success for several companies. Look at how BMW sales (and brand awareness) soared with the 3 Series and to a lesser extent with the recent addition of the 1 Series.
But as luxury line-ups grow it creates an opportunity for some luxury players to take advantage of the exclusivity that comes with not going down market. In other words, if you can afford dropping $50,000 to $90,000 on a Porsche you don't have to worry about seeing others driving around in lower priced entry-level models.
For Porsche, the minimum to get into the brand with a New Porsche Boxster is $49,500. A New Boxster S will cost you $69,900. At those prices, the market is strong. Strong enough to support doubling sales worldwide? That will be tough.
This year Porsche sales in the U.S. are up 2.7 percent, trailing the industry's growth. Last year Porsche outpaced the industry with sales growing 14 percent. That's solid growth, but doubling sales will require more. Like all luxury automakers Porsche is growing quickly in Asia and that will fuel much of its growth.
Staying with higher price points can work in the luxury car business, especially with a brand that has carved out a niche. For Porsche that means not trying to sell a car for $3Ok or $35K.
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