Lincoln Leads in Luxury Car Market Shift

In recent years, the automotive landscape in China has been undergoing a remarkable transformation, one that is proving to be more volatile than many expectedThe sales figures from traditional luxury brands such as BMW, Mercedes-Benz, and Audi (collectively known as BBA) have taken a sharp downturn, while other high-end brands like Porsche and Maserati frequently make headlines for decreasing prices and sluggish salesMeanwhile, domestic brands are increasingly pushing into the luxury segment, showing that the definition of luxury is shifting, especially in the era of new energy vehicles.
This evolution is reminiscent of various changes in the automotive industry over the past centuryEach era has brought its own perspective on what constitutes luxury—ranging from sumptuous materials to high-performance vehicles, every luxury brand has defined opulence through its unique lens

Only a select few have withstood the test of time, with Lincoln being a prime example
Having entered the Chinese market ten years ago, Lincoln has managed to steer clear of the fierce price wars that have ensnared others, instead embarking on a campaign that emphasizes value"Despite the chaos in the market, Lincoln remains steadfast," states Lincoln China President, Jiao MingdiHe emphasizes the brand's long-term approach focused on promoting high-quality, sustainable developmentLincoln strives to create what he terms a "high-value paradigm" for consumers.
A decade ago, Lincoln, with its centenary legacy as an American luxury brand, entered a luxury market dominated by German counterparts with a fresh vision aimed at disrupting the status quoOver the years, it has consistently articulated its unique viewpoint on luxury, attracting customers who share its values

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The brand's commitment to retaining high resale value and steadily increasing market share highlights a successful return to the essence of luxury—delivering experiences that exceed consumer expectationsLincoln is poised to navigate the changes spurred by the rise of new energy vehicles, charting its course with a distinctly defined “Lincoln Way.”

Moving Forward for a Decade
What then is true luxury, and can it be passed down through generations? In today's China, consumer perceptions of luxury brands have become somewhat muddledHowever, Jiao believes that luxury brands must have intrinsic qualities that resonate through generationsAfter a century of experience, Lincoln stands as a recognized paragon of American luxury—a notion the brand is committed to upholding.
As we analyze the current luxury vehicle market, it is evident that Lincoln is moving steadily and surely amidst the unrest

Recent data shows that as of the third quarter of this year, Lincoln's market share increased from 2% at the beginning of the year to 2.4% in the third quarterThe performance of several models has also been striking, with the Nautilus’s market share rising from 3.8% in January to 5.2% in October, and the Lincoln Z seeing its share double to 2.2% from the first quarter.
Behind these figures is Lincoln’s firm commitment to its newly minted brand philosophy of "heritage luxury, elegance, and tranquility." The changing trends in the industry have surprisingly fueled Lincoln's advancement, demonstrating its resilience.
When Lincoln returned to China in 2014, it introduced a distinct value service concept known as the “Lincoln Way”—one of its most notable identifiers that quickly established the brand's presence in the minds of consumers seeking American luxury

In just three years, Lincoln launched five models and celebrated a milestone of over 100,000 owners, achieving local production within five years and hitting a sales target of 500,000 units in nine yearsWhether in the speed of product launches, localization, or customer expansion, Lincoln's operational pace in the luxury car market has earned commendation.

The year 2014 marked the dawn of rapid growth in China's luxury car market, spurred by the swift expansion of its wealthy populaceFrom our starting point of 300,000 vehicles in 2010, the market exploded to 2.2 million units—a staggering increase of over seven-foldWealthier consumers became increasingly willing to invest in exquisite designs and indulgent experiences
This trend prompted established players like BMW, Mercedes-Benz, Audi, and Maserati to view China as a crucial market

The younger, affluent demographic has formed strong preferences for specific brands, allowing newcomers such as Lamborghini and Aston Martin to penetrate the Chinese market with surprising ease, capitalizing on the newly affluent consumer baseSimilarly, brands like Porsche have successfully entrenched themselves within the mainstream luxury segment thanks to strong brand recognition.

However, market expansion is tethered to economic stability, and as this new rich demographic experiences turbulence, the luxury segment faces a chain reaction of downturnsThis situation parallels challenges encountered in the luxury goods sector, as the high-end market contracts and we enter what can be described as a "chaotic era of value" in luxury carsTraditional brands must now ponder how to fortify their brand value and ensure core customers continuously recognize their offerings.
Lincoln sets a commendable example in this regard

As Edsel Ford, the brand's founder, once stated, "Success doesn’t require pleasing everyone, but it must be cherished by those who love it."

Bringing Value to Users
During a conversation with Jiao, he aptly summarized the luxury vehicle market trends this year in just two words: “severe challenges.” On one hand, established luxury brands are losing market share, while on the other, discount rates have soared to approximately 25%, posing a significant trial for branded experiences
The paradigm shift in luxury brand consumption values illustrates that the German luxury titans, represented by BBA, are faltering under the pressure of a price warIn an age dominated by new energy vehicles, the decreasing relevance of traditional luxury cars has emerged as a troubling cliché, reflecting the diminishing value attributed to these brands.
Remaining true to its foundation of providing unparalleled product value, Lincoln is resisting market pressure

In a climate where many brands resorted to damaging predatory pricing strategies, Lincoln maintained a discount rate of only 18.3%, the lowest among luxury brandsMoreover, it boasts the highest resale rate among American brands, with a remarkable 57.58% resale value after three years.
Lincoln’s philosophy, "Luxury has its own path," is elaborated through various pathways: "the path of grandeur," "the path of comfort," "the path of robustness," "the path of tranquility," and "the path of exclusivity." It strives to offer spacious interiors that exude heft and confidence, while the brand’s tradition of prioritizing cabin comfort continues to deliver enjoyable user experiencesTheir dedication to silent cabin experiences enhances the serene ambiance Lincoln is known for, while the engineering of powerful performance vehicles—equipped with advanced features as standard—ensures superior driving experiences for users

Through customized services under the "Lincoln Way," they provide personalized luxury experiences, further embodying the brand's outstanding value.

Lincoln continues to evolve, leveraging insights into the needs of the Chinese market to elevate the taste of luxury while offering value-driven experiences that exceed expectationsThe Navigator, a pioneer in the full-size SUV segment, has evolved through five iterations over 27 yearsAt the recent Guangzhou Auto Show, the new generation of the Navigator was unveiled, measuring over 5.3 meters in length, over 2 meters in width, and nearly 2 meters in height, featuring the only 24-inch wheels in the mass production category—a bold presence that embodies their motto "the center of attention."
Moreover, the long wheelbase model approaches 5.7 meters with an impressive over 3.3-meter wheelbase, setting a new standard in the full-size luxury SUV category.
Beneath its robust and rugged exterior is an understanding of Chinese consumers' refined sensibility

The latest Navigator is a thoughtful gift crafted for Chinese consumers, featuring enhanced second-row and third-row seating experiencesFor the first time, it introduces "double sofas" with seats made from opulent leather produced by Scotland's Bridge of Weir, offering 15 massage options and heated third-row seatingAdditionally, a dedicated audio-visual system for the second row enhances interaction and elevates every passenger's journey to an epitome of luxury
Lincoln recognizes that luxury car users in China often regard their vehicles as a third space beyond home and workTo address this, the vehicle is equipped with an Active Noise Control system and more than 40 soundproofing features, including acoustically laminated glass, allowing users to focus on their inner peaceEvery detail is meticulously thought out to ensure a premium experience.
Every model boasts a 3.5-liter V6 twin-turbocharged engine paired with a 10-speed automatic transmission, combined with a non-body-on-frame construction, intelligent four-wheel drive, and electronically controlled magnetic suspension, clearly reflecting Lincoln's commitment to performance.
At the Guangzhou Auto Show, Lincoln also unveiled its new generation of the Navigator limited edition, specialized for the Chinese market

From exclusive designs to tailored services, this limited edition offers users a comprehensive luxury experience, further highlighted by a unique gift box—a custom-crafted silk gift box decorated with "dragon" designs by Lincon and Shangjiu Kai, embodying both their rich heritage and modern refinements. 

Once reserved for royal use, the silk design symbolizes auspiciousness and nobility, infused into details such as armrest covers and neck pillowsEach limited edition Navigator comes with two custom interior badges also serving as personal tokens for the ownersThe vehicle's exterior features a distinctive knight insignia inspired by the 1956 Continental MKII model, seamlessly blending "old money" aesthetics with American luxury to offer exceptional experiences.
Jiao expresses that Lincoln aims to convey respect and resonance through these details, making the Navigator a symbol of the owner's identity and taste

As American luxury melds with Chinese opulence, Lincoln's understanding of its customers has deepened significantlyJiao cites data showing that the average age of Navigator owners is 41, comprising a group with high education and professional backgrounds—an audience with unique tastes and profound insights into traditional culture that resonate with the "old money" circle.
By offering precisely tailored products and premium services that align with the expectations of its discerning clientele, Lincoln has spent a decade refining its luxury philosophy in China, further articulating how to maintain driving enjoyment throughout a new phase led by the Chinese automotive sector.

Becoming the Navigator of the Era
At the Guangzhou Auto Show, Lincoln showcased two of its classic models—the 1932 LINCOLN MODEL K, adored by Hollywood elites, and the 1942 LINCOLN ZEPHYR, which pioneered streamlined automobiles

These models stand in contrast to the new generation Navigator, illustrating how Lincoln has consistently grasped trends over time and maintained its pioneering status in the industry.
The current Chinese market serves as Lincoln's training ground for solidifying its foundation and honing its internal strategies as it lays the groundwork for the next decadeLuxury is not an immediate achievement; it requires the tempering of time and an extraordinary level of patienceDespite evolving market dynamics and shifting consumer preferences, Lincoln remains committed to "value marketing," gearing up for future development by consistently delivering products that surpass expectations
While other luxury brands compromise their "luxury" distinctions in pursuit of immediate sales, Lincoln has resisted such trendsIn the current challenging market environment, where luxury car dealerships face "network shift" news, Lincoln has managed to maintain a high profitability ratio among its dealer network, a notable accomplishment.

According to Jiao, the profitability ratio among core dealers has reached 70%. By safeguarding the interests of its dealers, Lincoln continues to expand its market presence, seeking additional marginal benefits for the brand

Looking ahead, Lincoln has plans to drive operational efficiency further, expanding sales and service coverage across regions with potential customersBy enhancing its service capabilities, Lincoln aims to optimize its dealer network's performance to better serve the Chinese market.
Lincoln is also upgrading its "Lincoln Way" to "Lincoln Way PRO." Enhanced offline Lincoln Way service experiences enrich the comprehensive luxury journey for users across both online and offline dimensionsWhether it’s customized fragrances or cleaning machines for shoes, meticulous attention to detail exemplifies the physical manifestation of Lincoln's luxury ethos and values.
For the past decade, Lincoln’s efforts in China have sharpened its understanding of its advantages—its dedication to product value and commitment to service

With a long-term mindset, Lincoln embodies its philosophy of luxury, delivering authentic experiences to its users.
In the coming years, Lincoln will continue to narrow its focus on development in the Chinese market.

From the recent unveiling of the new Navigator at the Guangzhou Auto Show, Lincoln will concentrate its marketing efforts on large and mid-size vehicles worth over 300,000 yuan, especially its key models: Nautilus, Aviator, and NavigatorAdditionally, they will offer options like the Corsair and Lincoln Z for the younger demographic.
According to Jiao, the aim for this year is a modest increase in market share to better position itself for the next decade and the arrival of its future products.
This is truly the best and worst of times