Sant'Agata Bolognese: According to Stephen Winkelmann, chairman and CEO of Italian automaker Automobili Lamborghini, high taxes are holding back the growth of India's super luxury car market, which is otherwise on a growth trajectory.
With prices in India starting at Rs 3.16 crore, Lamborghini offers a wide variety of ultra-luxury vehicles. In 2021, the company sold 69 units there, breaking its previous record of 52 units sold in 2019.
Winkelman said in a virtual interaction that "India is a market for us that is on a growth trajectory like most of our markets across the world."
When asked what is stopping the sales of super luxury cars in the country from growing, he replied, "If we look at the details of the Indian market, it is clear that its growth is constrained, just like other markets." With high taxes in India. If we take a look at what is happening in India, we should understand it."
But, Winkelman argued, "Since we have consistently stated that we are not competing for a specific number, we are very pleased with (our) performance. In the future, too, we want to keep up the pace."
Currently, the GST rate on automobiles is 28%, and the rate of additional cess varies according to the type of vehicle and ranges from 1% to 22%. Completely Built Units (CBU) of automobiles are subject to customs duties of 60% to 100% depending on the cost and size of the engine, and whether the insurance and freight (CIF) value is less than or equal to USD. 40,000.
Also Read: BMW profits increase as luxury car prices rise
On the effects of the global economic slowdown, he said that while Lamborghini sells less than 100 cars annually, India is a huge market "in terms of population".
So even though India's economy may be slowing down, it's not really a big change. We'll have to wait and see what happens, but for the time being our brand isn't going to suffer, Winkelmann said.
In terms of deliveries, Lamborghini saw a growth of 8% or 7,430 units globally between January and September 2022.
Also Read:Collapsible Svitch LITE XE E cycle is released for 74,999 rupees
The first quarter of 2024 is already covered by our order portfolio, which gives us the peace of mind to work while thoughtfully anticipating the challenges we face, such as those starting in 2023 The first step towards hybridization, the executive said.
