The Luxury Car Business is Booming!
Sales of Rolls-Royce, Ferrari and Lamborghini and Other Luxury Car Brands are Soaring in Post Pandemic Times.
The luxury car boom. It’s been called the post-pandemic “roaring ‘20s” and people are out of quarantine and ready for fun. So much fun, in fact, that sales of luxury cars are booming like never before.
Exotic cars are at the top of the must-have list for buyers who have spent months indoors with little to do but fantasize about hitting the open road in a beautiful and powerful automobile.
Exotic cars such as Rolls-Royce, Ferrari and Lamborghini are filling their books with orders as the wave continues to rise.
In fact, the global rebound is causing just about all luxury automakers’ sales to soar as customers are putting in orders at unforeseen levels. That’s because the world’s wealthiest consumers cut back on purchases at the same rate as normal wage earners, which led to a huge drop in sales for high-end luxury vehicles during the height of the pandemic.
Now that we are free to roam, travel and go shopping (at least for now) sales have taken off and are expected to keep rising.
According to Forbes magazine, a sampling of numbers of the luxury car book looked like this:
- Annual sales of Lamborghini surpassed 2019 numbers to reach a record 7,430 vehicles. This was caused, in part, by the Italian automaker’s first-ever Urus SUV which starts at about $220,000.
- While Ferrari sales fell by ten percent to 9,119 in 2020 due to factory closures, the company says orders have now reached record levels thanks to the popular $507,000 SF90 Stradale and new $222,000 Roma.
- Aston Martin recovered from a lackluster position last year thanks to sales of its first-ever SUV, the DBX.
At the tippy top of the ultra-high price end of the exotic brand spectrum, the launch of the 19-foot long Rolls-Royce Boat Tail, a an ultra-luxury auto with a price tag starting at $28 million, is sure to drive some sales for the venerable British automaker. (Though only a very few models are being built).
“Coachbuilding is back at the British brand,” Rolls-Royce CEO Torsten Muller-Otvos said in a statement. “Only the House of RollsRoyce can offer its Coachbuild clients the inimitable opportunity to commission a product of future historical significance, that is as fundamentally unique as they are – and then participate in every detail of its creation.”
He also added that “there is some pent-up demand out there and quite some money around to be spent.”
Thusly, Rolls-Royce recorded its best-ever quarter in early 2021 driven by sales of the New Ghost coupe and Cullinan SUV. Production for 2021 is already fully booked.
According to various luxury automakers, both Europe and the U.S. are predicted to have increasing sales expansion for the coming years – but it is in Asia and China in particular – where the largest growth can be found.
In fact, the Japan Times has reported that the global rebound from the pandemic is pushing all carmakers’ sales to unheard of heights.
Felipe Munoz of market research firm Jato Dynamics told Japan Times that for the wealthy “most of the problem was that they couldn’t get out of their houses” – so they “postponed their purchases.”
In fact, the turnaround was already starting to happen in the last quarter of 2020.
In Britain, for instance, Bentley laid off thousands of workers as the pandemic began and then recorded record sales of 11,000 units driven by the Bentayga SUV.
A recent Bloomberg report even says there’s a postwar style boom for luxury automakers. As such, luxury vehicle sales are projected to keep growing rapidly through 2024.
According to Mordor Intelligence: “A significant growth of tangible luxury offerings in vehicles (worldwide is) shifting consumer preferences from sedans to SUVs, and increasing disposable incomes of consumers have been propelling the demand for luxury cars.”
So why is this luxury car boom happening?
Automakers say that their customers report that they simply had more time to think about the future and where they wanted to put their money. And they simply wanted to spend more time out and about in a car they love.
In other words: Why not?
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