The wealthy customers of the luxury sports car maker Lamborghini especially in China helped the brand to report record profits for 2020.
This “raging bull” of the auto world managed to deliver 7,430 cars to customers during 2020 which was only 9 per cent lower than the record delivery done by it in the previous year despite a the company being forced to shut down its factories for over two months during the Covid-19 pandemic crisis. Swale revenues reached 1.6 billion euros ($1.9 billion at the current exchange rate) which was about 11 per cent lower year on year. However the profits of the company reached a record high during the year with the sale of the pricier, highly customized cars that have a larger margin, the company said.
With the asset values rising all around the world boosting the purchasing power of wealthy car buyers, the company feels that its outlook for the current year should be even better. A new generation of younger super car buyers has also emerged who are powered with wealth generated from cryptocurrencies, special purpose acquisition companies, IPOs and company takeovers.
Nine months of orders booked for 2021 is already present with the company, said Lamborghini CEO Stephan Winkelmann.
“It’s a bit like with the stock markets,” Winklemann said. “The buyer’s spirits are up, they can’t wait to the moment to get out again and to enjoy life.”
The success of its $220,000 SUV, the Urus, has also significantly benefited the company last year, said Lamborghini which is owned by Germany’s Volkswagen Group. Since it started delivering the Urus in 2018, the actual total roll out of cars from its production units has more than doubled.
For 2021, the company expects China to become its second largest market overtaking Germany for the first time, Winkelmann said. The United States still remains by largest market for the brand by far with the company delivering 2.224 cars in total in last year.
However the tightening of emissions regulations around the world and the shift to electric vehicles are the biggest challenges for Lamborghini as well as for other sports-car brands such as Ferrari, McLaren and Bugatti.
The major attraction towards sports cars is speedy and loud engines and dramatic designs which they now have to redefine because of challenge from the electric cars – which like the United States based electric car maker Tesla, are bringing out cars that can reach 0-60 mph in less than two seconds.
At the same time, the brands also have to work hard to satisfy their customers who are typically wealthy car collectors who love the emotion and feel of roaring V-8 and V-12 engines.
No plans for coming up with an electric car has been announced by Lamborghini. But the company could make some announcements in April, Winkelmann hinted.
“At the end of the day, we have to look forward to what is going to happen in five to 10 years from now and how this will change our way of looking at these type of cars,” he said. “We have to anticipate also a change of mind of our customers and the enthusiasts as well. This is a very crucial moment for super sports cars, where you have to really set the marks for the future without scaring anybody by admitting clearly what is going to be the limit for the future in terms of normal combustion engines.”
(Adapted from CNBC.com)