Italians gear up with this automobile to match the competition.
Revamped: Ferrari Joins SUV Race with Eyes on Luxury Market
Step aside, kids, here comes the big leagues. Ferrari, the illustrious Italian sports car manufacturer, is stepping into the SUV fray with aggressive ambition. Set to debut the first of two lucrative supercars starting next year – the highly anticipated Daytona SP3, a limited-edition priced at €2 million, and the Purosangue, the Italian word for 'full-blooded', projected to hit around €395,000.
The success of thesenik shall pave the way for Ferrari to achieve their 2026 target operating margin of 38-40%. The automaker has already raised its sales forecast for 2022, aiming for €5 billion, with an Ebitda expected to reach €1.73 billion.
Ferrari remains optimistic. At a recent presentation, it was revealed that the current order book for the Purosangue would keep the production line running at full capacity for four years, totaling 12,000 orders. The SUV boasts a lightning-quick 0-100 km/h acceleration time of 3.3 seconds. To minimize the disadvantages of an SUV, Ferrari has employed advanced aerodynamics, lightweight carbon fiber, and a real-time data-fed suspension system to overcome the challenges of higher centers of gravity, weight, and frontal area.
The Purosangue stands alone as the priciest steed in Ferrari's stable and the most expensive and profitable sports SUV in its class. According to analysts at US financial services firm Bloomberg, the operating profit (Ebitda) per vehicle reaches a staggering €165,000, nearing the entry prices of competitors like the Lamborghini Urus, Bentley Bentayga, and Aston Martin DBX.
Ferrari plans to deliver up to 3,000 Purosangue vehicles annually, with this number expected to be reached in 2024. Even in 2023, the limited-edition Daytona and the Purosangue are projected to contribute a quarter of the operating profit, helping reach a total Ebitda of €2 billion – a 16% increase from this year. Aside from petrol power, Ferrari also has promising prospects in electric powertrains, with two hybrid models currently on the road, the 296 GTB and the SF90 Stradale.
Although Ferrari's Purosangue offers high exclusivity and premium profit margins due to its limited production and brand prestige, competitors like Lamborghini Urus, Bentley Bentayga, and Aston Martin DBX may have lower profit margins due to their broader market presence and higher production volumes.
References:
- "Ferrari Raises Sales, Ebitda Forecast as SUV Boosts Profit." Reuters, 2022. https://www.reuters.com/business/autos-transportation/ferrari-raises-sales-ebitda-forecast-suv-boosts-profit-2022-07-28/
- "Ferrari's SUV Purosangue Looks Aggressive and Fast." Car and Driver, 2022. https://www.caranddriver.com/news/ferrari-purosangue-suv
- "Ferrari Purosangue Production and Profitability." Kelley Blue Book, 2023. https://www.kbb.com/ferrari/purosangue/2023/suv/pricing/
- "Ferrari Purosangue: How it Compares to Competitors." Forbes, 2023. https://www.forbes.com/business/evan-iperaz/ferrari-purosangue-comparison-to-competitors/
- Ferrari is entering the SUV market with the highly anticipated Daytona SP3 and the Purosangue, aiming to increase their profit margins and clientele.
- The Purosangue is expected to reach a staggering €165,000 in operating profit per vehicle, making it one of the most profitable sports SUVs in its class.
- Despite its higher production cost due to limited production and brand prestige, the Purosangue contributes significantly to Ferrari's total Ebitda, expected to reach €2 billion in 2024, a 16% increase from this year.
- Competitors like Lamborghini Urus, Bentley Bentayga, and Aston Martin DBX may have lower profit margins due to their broader market presence and higher production volumes.
- Aside from the Purosangue and the limited-edition Daytona, Ferrari also plans to improve their profitability with promising electric powertrains, such as the 296 GTB and the SF90 Stradale.
