Luxury is the New Performance.*
In 1990, BMW sold its flagship 735i as "a performance car trapped in a luxury car's body."
Performance was the differentiator.
1️⃣ Today, performance has become an expectation.
What changed?
When the 735i was launched, most cars were genuinely slow. BMW proudly claimed the 735i —with its 208-horsepower engine— accelerated to 60 in 8.2 seconds with a manual transmission.
That was quick then. And it still is today.
(Because the speed limits are the same and no one wants to spill their coffee.)
But automakers have continued to raise the bar. As a result, nearly all of today's best-selling midsize SUVs reach 60 mph in 6-8 seconds.
And fewer buyers are choosing the performance packages to go even faster.
2️⃣ Refinement and comfort are what's selling.
In the U.S., the Hyundai Palisade and Kia Telluride have become two of the midsize SUV segment's biggest success stories.
These vehicles deliver many of the sensory cues buyers associate with luxury: premium LED lighting, excellent fit and finish, soft touch materials, quiet cabins (low NVH), large displays, ventilated seats, panoramic roofs and other thoughtful details like blind spot cameras.
This trend is even more evident in the UK:
The JAECOO 7 — a Chinese crossover that launched there in late 2024 — topped the entire UK new-car chart in March 2026. And YTD, it’s the third best-selling vehicle.
Why?
Popular UK reviewer Harry Metcalfe (Harry’s Garage), who often reviews ultra premium luxury and sports cars, gave the J7 a fairly glowing review earlier this month. He noted that the J7 has generous standard equipment, "flush panels," "real leather" and it "feels quality." On top of that, it has a "Range Rover-esque look about it." For about £35,000.
3️⃣ Electrification is unlocking new levels of ride quality.
Smoothness used to be expensive. Luxury automakers invested in larger engines, sophisticated transmissions, and extensive sound insulation to create a quiet, effortless driving experience.
Today, hybrids and EVs deliver many of those same sensations by default: instant torque, seamless acceleration, no gear changes, and near-silent operation.
And yet, the Hyundai Palisade Hybrid starts at $44,160. The Tesla Model Y starts at $41,630.
Both of these are priced well below the new vehicle average transaction price of ~ $49,220 (May, 2026) according to Cox Automotive.
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For decades, automakers competed on capability: faster, stronger, more precise engineering.
Much of that has become table stakes.
The brands winning today make the everyday drive feel quiet, smooth, and refined.
The next battleground for mainstream cars isn't what they can do. It's how they feel.
*James May was ahead of his time when he said this in 2003, while reviewing a Cadillac prototype for Top Gear.
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