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The global CEO of Lamborghini, Mr. Stephan Winkelmann, recently shared that young people in India are becoming the driving force behind the sales of the Italian supercar manufacturer, and that the company has achieved record sales in 2023. Interestingly, this trend is not limited to India alone, as they have also witnessed a surge in demand from the Indian diaspora living in the United States, Europe, and Southeast Asia.
During his first visit to the country in 10 years, Mr. Winkelmann expressed surprise at the improvement in India’s infrastructure. He was also delighted to see that women in the country are increasingly attracted to the Lamborghini brand.
He stated that if the tax regime continues to remain stable, there is great potential for expanding the company’s sales volume. “There have been many changes in infrastructure, which have greatly benefited the automotive industry. I think we are in a very good position,” he added.
He revealed that the luxury car segment has a size of around 1,000 cars per year. Their main competitors in India are Ferrari, McLaren, and Aston Martin.
The tax structure has remained stable for the past 5 years. Like other markets around the world, the age of luxury brand buyers is decreasing. He noted that consumer awareness is also increasing. “It’s not just about luxury cars, but also about what surrounds us today, such as fashion, accessories, watches, and jewelry. India is still a market with great potential,” he said.
Lamborghini sells three models in India: the Huracan, Urus SUV, and plug-in hybrid Revuelto. In 2023, the company achieved its first ever three-digit sales figure in India with 103 units sold. The global sales of the company also increased by 10% to 10,112 units during this period.
India imposes a Goods and Services Tax (GST) of 28% on cars, with an additional tax ranging from 1-22% depending on the type of vehicle. Imported cars, such as Lamborghini, are subject to customs duties of 60-100% based on engine size, cost, insurance, and freight charges. While the stable tax structure allows consumers to get used to this spending level, the expanding highway network not only ensures higher sales figures but also boosts trade and all related aspects,” Winkelmann said.
“Our customers in India are very young. Similar to most countries we operate in, our brand caters predominantly to men. But there is an increasing number of women entering this field, especially in India,” he said.
At a time when major economies such as the UK, Germany, and Japan are facing economic difficulties, Winkelmann said India’s potential is very positive. Lamborghini expects double-digit growth rates in this market to continue.
India is also becoming an attractive market for major electric vehicle players, including BYD and Tesla. Most recently, Vietnamese electric vehicle company VinFast officially entered the country with the groundbreaking ceremony for a 160-hectare electric vehicle manufacturing plant in Thoothukudi, Tamil Nadu. The initial investment for the project is $500 million over a period of 5 years, with an expected production capacity of 150,000 vehicles per year, creating job opportunities for 3,000-3,500 workers.
Source: Reuters, ET
