Key Points
Ferrari NV continues to advance its pure electric vehicle project, while Lamborghini opts to scale back its efforts. Lamborghini informed CNBC that demand for electric vehicles within its market segment is declining and remains very limited. An automotive industry analyst suggests Ferrari NV has valid reasons for persisting with its electric vehicle strategy.
Luxury sports car manufacturers, much like the broader automotive industry, are gradually assessing the true scale of demand for electric vehicles. Lamborghini has stated there is almost no market for electric supercars. In contrast, fellow luxury automaker Ferrari NV is pushing forward with its own pure electric vehicle program, albeit with adjusted plans. The global shift towards electrification presents a dilemma for automakers across segments: they must invest in electric technologies favored by some overseas regulators while simultaneously catering to customers who are either cautious about or entirely disinterested in electric vehicles. Ferrari NV has not yet launched any pure electric models, but reservations for its first fully electric car, the Luce, are expected to open later this spring. The publicly traded company sells only about 14,000 cars annually, yet its market capitalization exceeds the total assets of Lamborghini's parent company, the German automotive giant Volkswagen Group. This is largely attributable to Ferrari's extremely high pricing, with models starting in the hundreds of thousands of dollars and reaching into the millions. "Ferrari has been one of Europe's most successful companies, not just within the auto industry but overall; it has been tremendously successful," said Tom Narayan, an analyst at RBC Capital Markets. Ferrari NV has revised some of its electrification targets. During its Capital Markets Day last October, the company indicated it now expects electric vehicles to comprise 20% of its sales—halving its previous goal. Concurrently, Ferrari will continue producing internal combustion engine vehicles, including its famed 12-cylinder models. "I think Ferrari is playing both sides, serving the electrification clientele that does exist, while also catering to its core enthusiasts—the internal combustion engine fans that represent Ferrari's DNA. It can manage both," Narayan stated.
"Emotional Connection"
Analysts note that the strength of a luxury brand lies in its ability to convince consumers to pay six or seven-figure sums for a car. However, this also means customers are highly discerning, requiring manufacturers to remain adaptable. In late February, Lamborghini CEO Stephan Winkelmann told The Times that the "adoption curve for pure electric cars" in Lamborghini's target market "is slowing down and is almost at zero." Winkelmann attributed this to electric vehicles' inability to deliver the **"emotional connection"** inherent to internal combustion engine supercars. Lamborghini told CNBC its initial product plan involved first launching a fully electric version of the Urus SUV, followed by a new series of pure electric models named Lanzador. "However, after extensive analysis and ongoing dialogue with dealers and customers, it became very clear: the adoption of pure electric vehicles has slowed significantly, especially in the luxury supercar segment, where demand remains very limited," the company stated. Instead, Lamborghini said, both the Lanzador and Urus will continue as hybrid models, consistent with the rest of the brand's lineup. Karl Brauer, Executive Analyst at iSeeCars and a supercar owner and tester, agreed with Winkelmann's assessment. "It's refreshing that Stephan is willing to admit this; many aren't, but plenty of auto CEOs know there really isn't a market for high-end pure electric supercars," Brauer said. He noted that a significant part of Ferrari NV's appeal lies in its engagement of the senses: the visual design, the engine sound, the driving feel, and even the smell of the exhaust. Electric vehicles can "look cool" and offer rapid acceleration, often outperforming gasoline cars, but they lack the soul and charisma characteristic of a combustion-engine Ferrari. Narayan suggested the differing approaches between Ferrari NV and Lamborghini also relate to their corporate structures: Ferrari is an independent company, whereas Lamborghini is a brand within a larger automotive group. "Lamborghini occupies a very precise, niche position, enabled by the Volkswagen Group's vast portfolio covering all customer types. Ferrari is completely independent and must broaden its business base as much as possible." Nevertheless, Narayan believes a market exists for a Ferrari NV electric vehicle. "They may not know how strong demand will be, which is precisely what they need to test. But if they can sell 500 to 1,000 electric Ferraris a year—which seems achievable—then entering this segment is justified."
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