Lamborghini positive about future in India

Things are going well for Lamborghini in India. Despite the slowdown in the automotive sector, the Italian super-luxury carmaker has recorded growth last year. And the trump card for Lamborghini India has been the super sports utility vehicle Urus, which has fetched volume growth for the company.

“Last year, the premium segment was down by 15% and super luxury was down by 20%. But despite that, Lamborghini has seen growth,” Sharad Agarwal, Head of Lamborghini India, told Deccan Herald.

Matteo Ortenzi, CEO, Automobili Lamborghini, Asia Pacific, feels the company could have done even better if there was no slowdown. “We introduced Urus in the market that was going down. This was to offset any negative trend. But we could have done better if the segment was stable or growing,” Ortenzi said.

Even though Lamborghini has been doing well in India, the country is way behind as compared to other Asian markets. “Within Asia, India is a very small market. Lamborghini India represents less than 1% worldwide. The luxury market in India is very small compared to others like China or Japan. But we see the potential in India. We are not rushing for volumes because the market is still not there,” Ortenzi stated.

Ortenzi also said that they are not too worried about high taxes in this segment but added: “We are worried about continuous changes in this industry. We need consistency.”

Agarwal mentioned two ways in which growth can happen in a country like India, where there is potential in the super-luxury segment. “Growth is driven by two factors. One is internal to the brand or the business.

The second is external, which has been very challenging and shaky, and we have limited control and influence on that,” he said.

“At Lamborghini, what we are doing and what we believe is to do things right in areas that are in our control. It could be setting up the structure and team in India so that we can be close to the market, give the right feedback, give our customers the same experience that we give worldwide, to build the right infrastructure like upgrading the showrooms or the driving experience. We want to promote the culture of driving super sports cars in India and then bring in the right products at the right time. We have also been bringing cars much faster to India than other markets,” he added.

However, there is one factor that hinders the growth of the super-luxury segment in India – crowded roads. “Driving sports cars on congested roads is a task. But despite that, we are seeing that people have an aspiration to own a Lamborghini in their life. People still buy. And if traffic conditions improve, it will only push up demand,” said Agarwal.

Congested and bad city roads could very well be the reason the Urus is doing well in India since it is more practical.
Despite the current challenges, Lamborghini India is positive about the future.

“The future is bright and that is why we are in this and positive about it. In India, the luxury segment is less than 1% of the total automotive market but in China, it is 10%. If the economy grows, the per capita grows and the segment will also grow. We have a future, but we need to have patience in this market. We can then push for numbers,” Agarwal stated.

Like other manufacturers, Lamborghini is thinking of going electric but the prospect could take some time.

“We are surely interested in electrification. We are working on that,” said Ortenzi.

“But at the moment, the technology to build the perfect electric sports car is not there and we do not want to compromise on performance and emotions. The step in between is hybridisation and will be the best solution for the next generation of sports cars and we are working on that,” he added.