2025 luxury automotive trend report: Industry leaders on COE prices, EVs and more

Will COE prices continue to rise? Will demand for electric vehicles (EVs) dip? Will car manufacturers continue to go all-in on electrification? What do consumers want in their luxury cars today?

The automotive industry has been undergoing a dramatic transformation in recent years as it transitions to electric mobility. The threats and challenges posed to legacy players are undeniable, particularly amid intensifying competition from Chinese EV makers that proliferated around the world at an unprecedented scale in 2024.

How will this impact the business strategies of luxury car brands going forward? Read on to find out the key themes that these automotive industry leaders expect to take centrestage in 2025.

LARS NIELSEN, MANAGING DIRECTOR 

BMW Group Asia

On business growth and expansion

“In Singapore, the BMW Group brands (BMW & MINI) performed significantly well from January to November in 2024, seeing a growth of 46.1 per cent year-on-year. While we expect some headwinds in 2025, we believe that business will continue to grow with the introduction of new vehicles such as the BMW 1 Series, BMW X3 – one of our most popular models – and the MINI John Cooper Works range.”

On COE prices

“COE prices are unpredictable at the best of times. Together with our three dealer partners, we continue to monitor the market, ride the wave and do what is best for our customers and business.”

On the flexibility of its EV strategy

“The BMW Group has always had a technology-open approach – this means that we never put all our eggs in one basket. A single technology is not enough to enable climate-neutral mobility worldwide, particularly in the diverse range of markets covered by BMW Group Asia.

For this reason, we are enabling our plants to produce different drive variants flexibly in line with customer demand, investing in improving the efficiency of our ICEs (internal combustion engine cars), expanding our xEV range, and leveraging new technologies such as hydrogen and fuel cell to speed up the transformation of the mobility sector.”

On competing against Chinese EV players

“This is not the first time, nor will it be the last time, that the BMW Group has faced an uphill battle. As in the past, we are confident that we will make it through, and the key is to remain agile and listen to customer demand.

Regardless of where these new EV players come from, they increase awareness and acceptance of the technology, and that benefits the entire industry. But what makes us stand out from these players is the high-level of service that our dealer partners provide and a strong reputation for safety and reliability. This is what we believe our customers expect from a premium brand and what they will get, from both BMW and MINI, in our markets.”

On enhancing the customer experience

“While other brands continue to move away from the dealership model, we are doubling down our efforts [on enhancing the customer experience] as we strongly believe in providing customers with personalised experiences that can make the difference between buying a car and not [buying one]. Whether a customer engages with our brands online or in the showroom, that experience is not purely transactional and is the basis of a long-standing relationship with us and our people.”

ALISTAIR SCOTT, MANAGING DIRECTOR

Jaguar Land Rover Asia Pacific

On the impact of potential trade policies

“The optimism in markets following the US election reflects confidence in pro-business policies anticipated from President Trump’s [second-term] administration [from 2025]. However, sustaining this buoyancy throughout 2025 is uncertain as it will depend on global macroeconomic factors such as geopolitical stability and any significant shift in US trade policies.

I’m interested in observing the impact of new US and EU trade policies and how Chinese OEMs (original equipment manufacturers) are likely to respond. Will we see equal protectionist policies or a measured response that embraces a less-interventionist trading style? I do, however, anticipate an adjustment in China’s export strategy as global markets take stock of their inventory levels. We’re witnessing a noticeable shift in electrification powertrains across the industry, notably towards hybrid and extended-range electric vehicle (E-REV) technology. This evolution reflects consumer demand for the most efficient electric powertrain derivatives.

For JLR, a buoyant market offers opportunities to accelerate our investments in key growth areas aligned with our ‘Reimagine’ strategy. This includes electrification, where we are transitioning into a fully electric future for all brands, as well as digital transformation, which will redefine modern luxury with cutting-edge technology and connected services. However, we will continuously monitor market developments and remain agile to align our business strategies accordingly to ensure resilience.”

On COE prices

“The trajectory of COE prices in Singapore is likely to remain upward in the near term, driven primarily by a constrained vehicle quota system and growing household affluence. While these rising prices pose challenges, they also present unique opportunities for luxury brands like ours. Consumers investing in COEs are more inclined to seek premium experiences and advanced features. As such, we continue to see an increasing appetite for luxury and sustainable vehicles, and we are committed to continuing our leadership in this space by delivering modern luxury experiences that meet and exceed these expectations.”

On an ‘all-in’ electrification strategy

“At JLR, we remain unwavering in our commitment to a sustainable future. Electrification is not just a trend but a necessity for environmental stewardship and long-term market leadership. This commitment is reflected in our recent announcement of Type 00, the first model in Jaguar’s all-electric future – a pivotal milestone in our ‘Reimagine’ strategy.

Our approach prioritises delivering luxury vehicles that seamlessly integrate electric and hybrid technologies. By ensuring our sustainability goals are met, these vehicles are designed to offer exceptional performance and the premium experience expected by our customers. It’s also important to understand that JLR’s electrification strategy is aligned to provide an electrified powertrain option across the entire product range and one that is suitable to meet local market conditions – this strategy therefore allows JLR to adapt accordingly based on client and market demands.

We also recognise that challenges such as charging infrastructure need to be addressed to sustain demand for EVs. That’s why we are investing in strategic partnerships to expand charging networks and pioneering advancements in battery range, sustainability and efficiency. By focusing on these areas, we aim to ensure that our electrified offerings resonate with both early adopters and traditional luxury consumers, bridging the gap between aspiration and accessibility.”

On competing against Chinese EV players

“The rise of Chinese EV manufacturers is undeniable, but their success has often been concentrated in volume-driven, price-sensitive markets. As a luxury automaker with decades of enviable provenance, we believe JLR operates in a different sphere, focusing on premium experiences, cutting-edge technology and sustainability. We remain extremely focused on expanding our reach away from the competitive value proposition messaging.

The traditional automotive industry is undoubtedly in a transformative period, but by staying true to our brand ethos and embracing innovation, we believe that we can continue to lead in a competitive and rapidly changing global market.

Our ‘Reimagine’ strategy positions us uniquely in this landscape, blending luxury with electrification. Our focus remains on creating aspirational products like the forthcoming all-electric Jaguar line-up and the highly anticipated new Range Rover Electric model. These developments exemplify our commitment to combining timeless design with advanced electrification technologies and are designed to resonate deeply with discerning customers who prioritise both performance and exclusivity.”

IRENE NIKKEIN, REGIONAL DIRECTOR ASIA-PACIFIC

Rolls-Royce Motor Cars

On increased demand for bespoke luxury 

“In 2025, luxury brands are doubling down on immersive storytelling, signalling a future where the client journey is deeply experiential. The ongoing success of Rolls-Royce’s Goodwood era is defined by the marque’s successful transition from carmaker to authentic luxury house, characterised by its focus on bespoke personalisation, exceptional client experience and peerless product substance.

For clients like Rolls-Royce’s, luxury lies not just in the product, but in the exclusivity and personalisation of the journey, and we expect the demand for bespoke commissions across all Rolls-Royce models to continue rising. To meet clients’ growing demand for increasingly detailed and extensive bespoke commissions, Rolls-Royce expanded its Private Office network further in New York and Seoul in 2024. Our Private Offices focus on Private Collections and the Private Commission programme, which let clients realise their vision of a truly bespoke, complex and personal one-off motor car with direct access to Rolls-Royce’s own designers and engineers.

We place great emphasis on data-driven insights which allow luxury brands to deliver hyper-personalised experiences and anticipate consumer needs. VIP-only spaces like our Private Offices allow us to understand the evolving needs and preferences of the world’s most significant luxury consumers. In addition to this, our owners-only Whispers app also provides valuable insight to evolving client taste and we will continue investing in these channels.”

On aesthetic trends

“Rolls-Royce is well-known for its colour palette of over 44,000 regular colours in addition to bespoke hues that best express our clients’ unique personalities, and we look at trends forecast as catalytic inspiration for our clients’ commissions. For instance, a design to commemorate the recent inauguration of our Seoul Private Office was inspired by Pantone’s 2025 Colour of the Year, Mocha Mousse, a luxuriant earthy tone that conveys a relaxed elegance, complemented by elements inspired by the Korean hanok house and hanji paper.”

On continuing the journey to full electrification

“Our electrification strategy has not changed. We are fully capable of being all-electric by 2030. We have seen a significant demand for [our fully electric model] Spectre from our clients, which suggests our approach is appropriate and in line with our client’s expectations. As a client-led organisation we will continue to monitor the feedback from our clients.”