"Luxury" is really more an indicator of pricing ranges. The model 3 slots in quite nicely as a competitor to the MB C-Class, BMW 3 and 4 series, Audi A3/A4, etc. Higher trim Accords and Camrys are also in competition here.

"Luxury" might mean comfortable ride and steering and leather and wood to some folks. But increasingly many don't care too much about that and care more about the technology advancements (large screen, security cams, software updates, auto pilot, etc).

The price puts it well within in the luxury car range.