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Lamborghini sales topped 1.6 billion euros or approximately $1.9 billion, which was 11% down from 2019.
Italian-based manufacturer of luxury sports cars and SUVs Lamborghini, a Volkswagen Group-backed automobile company, has reported a good 2020 financial year and record profits despite the coronavirus pandemic. Notably, the company delivered 7,430 luxury cars in 2020.
Although the figure was a drop of approximately 9% from the prior year’s record, Lamborghini stated that its profits were much higher. According to media outlet CNBC, Lamborghini sales topped 1.6 billion euros or approximately $1.9 billion, which was 11% down from 2019. However, the profit margin was much higher last year in comparison to the prior year as customers ordered more expensive units including Lamborghini Urus. Reportedly, Lamborghini Urus accounted for 59% of the company’s sales last year. Out of which, Chinese customers accounted for the largest Urus buyers according to the company. “Urus is giving us peace of mind in terms of return on investment and also earnings, and the earnings are giving us the confidence to reinvest in the future,” said chief executive Stephan Winkelmann.
Lamborghini was compelled to close its manufacturing point for two months last year to adhere to the coronavirus prevention measures put in place by authorities. As a result, the company’s ability to deliver higher than the prior-year was hampered.
Lamborghini, Its Profits and Market Outlook
Lamborghini stated that there has been a huge demand for its luxury cars. Notably, the company has orders in place of up to nine months, thus implying 2021 might be a better year than the previous. “We have already covered customer orders nine months of the year for 2021,” Mr. Winkelmann said. “So we are looking at the year 2021 in quite a positive bent.”
Lamborghini has noted a significant increase in demand from the Chinese customers and anticipates the country will outshine Germany as its second-largest market in 2021. The United States remains Lamborghini’s largest market for its luxury cars, whereby it delivered 2,224 sports cars last year.
Forward, the company anticipates higher competition, especially from the electric vehicle industry. Notably, Tesla Inc (NASDAQ: TSLA) has been successful in producing luxury sports cars and SUVs that the market is ready to adopt.
However, Lamborghini might be looking to venture into electric vehicle-powered engines in the near future. “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 types 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.”