Success in the Chinese market led to Lamborghini’s highest profits

Several media including BBC reported that Lamborghini’s profits soared up even in 2020.

Lamborghini realized its most profitable year ever in 2020, even though it experienced a two-month shutdown of its Italian factory. In fact, the number of sales was slightly lower than the previous year. However, Lamborghini sold more expensive, customized supercars, so it made profits higher as a result.

The demand in China soared up, and the country would overtake Germany as its second-biggest market in 2020. Lamborghini’s new sports utility vehicle (SUV), Urus, has been successful. This is because it accounted for 59% of the company’s sales worldwide in 2020.

Lamborghini sold 7,430 cars worldwide in 2020, and 8,250 in 2019, respectively. In fact, Chinese car buyers have developed an appetite for ultra-luxury SUVs from the likes of Rolls-Royce, Bentley and Lamborghini.

Who is Lamborghini?

Automobili Lamborghini S.p.A. is an Italian brand and manufacturer of luxury sports cars and SUVs. The Volkswagen Group owns the company through its subsidiary Audi.

According to Lamborghini’s official page, it was founded in 1963 and its head office is in Sant’Agata Bolognese, in Northern Italy. With 165 dealerships throughout the world, the company has seen global sales growth for the last nine consecutive years.

Over half a century Automobili Lamborghini created a continuous series of dream cars. They are the 350 GT, Miura, Espada, Countach, Diablo, Murciélago. In addition, the Italian company produced limited editions such as the Reventón, Sesto Elemento, Veneno and the Centenario. To be specific, the company offered the Lamborghini Sián FKP 37 in 2019, which was a few-off build of only 63 units.

Lamborghini delivers unique new hybrid technologies, featuring the world-first application of a supercapacitor for hybridization, new materials technology, and performance.

Who is Audi?

Audi AG is a German automobile manufacturer that designs, engineers, produces, markets and distributes luxury vehicles. The Volkswagen Group wholly owns Audi, and Audi has nine production facilities worldwide.

According to its homepage, Audi’s strategy is to unleash the beauty of sustainable mobility. There are several targets that the German company tries to achieve. By 2025, Audi will have reduced the CO₂ footprint of its fleet by about 30 percent over the entire lifecycle. This is one example. Another example is that Audi aims to be completely CO₂-neutral by 2050 at the latest.

High-end models never die

Lamborghini’s success in 2020 is quite impressive because so many companies across the globe experienced difficult time in the year. However, we can learn an important lesson from this result: High-end models never die.

Real economy does not necessarily reflect how the rich earn money. They have so many assets and their assets are bigger than that other people have. Therefore, they are always afford to purchase luxury products and services. Lamborghini’s new sports utility vehicle (SUV), Urus, is without exception. Even though the number of units sold is decreasing by about 10% from 2019 to 2020, Lamborghini’s profits are increasing.

As we see other example in the smartphone market. It is Apple’s iPhone. In the fourth quarter of 2020, worldwide smartphone shipments reached 359.6 million units. This number showed a small decline of 2% year-on-year. However, Apple shipped the highest number of iPhones ever in a single quarter, and the number was 81.8 million units. It was up by 4% against 2019.

Thus, we can expect more growth of Lamborghini as well as Apple in 2021.