The desire for Lamborghini’s supercars is being driven by young, aspirational Indians, who are fueling the company’s sales growth in India. Stephan Winkelmann, the CEO of the company, mentioned the startling infrastructure development in India and the growing demand from female consumers.
Given India’s stable tax environment and expanding luxury market, Lamborghini is upbeat about the future of its brand there. In India, the company offers three models, and by 2023, sales will have surpassed 100 cars. Winkelmann also outlined the company’s future ambitions, which include reducing carbon emissions.
According to worldwide chief executive Stephan Winkelmann, who spoke to ET, Lamborghini, an Italian supercar manufacturer, saw record sales last year, with a large number of its clients being young, aspirational Indians. According to him, the brand is experiencing demand from Indians who own second homes in the US, Europe, and Southeast Asia in addition to buyers in the nation. Its iconic, wedge-shaped sports car is among the quickest production vehicles available to the truly wealthy.
Winkelmann claimed to have been “surprised” by the advancements in India’s infrastructure on his first visit to the nation in ten years. He’s also thrilled that, even in India, women are starting to like the brand more and more.
He stated that chances to increase sales are good if the tax system stays steady and that the nation’s consumer mood is upbeat “Several things have changed, but the most noticeable ones right now are those related to the infrastructure. Indeed, the auto business has taken off right now in our field of work as well,” he said. “We think that everybody is in the right place to do business and we have grown as Lamborghini, which is very positive… I think we’re very well-positioned.”
According to him, the number of cars in the super luxury market is roughly 1,000 annually. In India, Ferrari, McLaren, and Aston Martin are its main competitors.
For the past five years, the tax system has stayed the same. Similar to other parts of the world, there is a decline in the age distribution of persons obtaining high-end labels. He stated that purchasers’ awareness is also rising. He continued, saying that India is still a market with a lot of untapped potential. “I think all (luxe) brands are in the right position, and I’m not only talking about the luxury car business, but also what is around us, be it fashion, accessories, watches, or jewelry,” he remarked.
Obtaining high-end labels. He stated that purchasers’ awareness is also rising. He continued, saying that India is still a market with a lot of untapped potential. “I think all (luxe) brands are in the right position, and I’m not only talking about the luxury car business, but also what is around us, be it fashion, accessories, watches, or jewelry,” he remarked.
Automobile Lamborghini offers three vehicles in India: the plug-in hybrid Revuelto, the Huracan, and the Urus SUV. The prices of these models range from ₹3.22 crore to ₹8.89 crore (ex-showroom). With 103 vehicle sales in 2023, the company became profitable for the first time in India. During this time, global sales increased by 10% to 10,112 units.
India taxes cars at a rate of 28% for goods and services (GST), plus an additional 1% to 22%, depending on the kind of vehicle. Fully built foreign automobiles, like Lamborghinis, must pay customs taxes ranging from 60% to 100%, based on the engine size, cost, freight, and insurance. Winkelmann claimed that a vast road network guarantees higher sales and “trade and all the things connected to it,” even though consumers can get “accustomed to this type of expenditure” because of a steady tax structure. Winkelmann contends that while a stable tax structure aids in acclimating individuals to “this kind of expenditure,” a substantial roadway network ensures an increase in “trade and all the things connected to it” in addition to higher sales.
The demographics provide an additional catalyst for growth. “We cater to a relatively young clientele in India. As with most nations we operate in, our brand is mostly driven by men. However, an increasing number of women are entering it, even in India,” he remarked.
Despite the economic difficulties faced by several major economies, including the UK, Germany, and Japan, Winkelmann stated that the mood in India is “very positive.” Lamborghini anticipates that the market will continue to grow at a double-digit rate. He added that efforts to lower carbon emissions had started.