High taxation is limiting the growth of super luxury car sales in India and the market will remain small although the growth rate will be high, according to Automobili Lamborghini Chairman and CEO Stephan Winkelmann.
The Italian super sports carmaker, which on Tuesday reported a 4.9 per cent increase in its global deliveries at 5,090 units in the six months ended June 30, 2022, expects to have another record sales in India this year.
“What we are always underlining (is) high taxation which is limiting (sales of) our cars, and therefore in the foreseeable future the size of the Indian market will stay small but the growth rate in terms of percentage is high,” Winkelmann said in virtual interaction.
He was responding to a query on the potential of the Indian market and the challenges that are limiting its growth.
At present, fully built imported cars with petrol engines bigger than 3,000 cc or diesel engines larger than 2,500 cc with a CIF (cost, insurance and freight) value of more than USD 40,000 attract 100 per cent import duty.
A 60 per cent import duty is levied on completely built imported vehicles with petrol engines smaller than 3,000 CC or diesel engines less than 2,500 CC with a CIF value less than USD 40,000.
As per industry estimates, the super luxury cars segment in India comprising cars priced above Rs 2.5 crore clocked 300 units last year.
Lamborghini, which sells a range of super luxury cars with prices starting from Rs 3.16 crore in India, recorded its best ever sales in the country in 2021 with 69 units, beating its previous best record in 2019 when it sold a total of 52 units. It had sold 37 units in 2020 in the country.
On the company’s performance in the Indian market, Winkelmann said Lamborghini has had a good growth rate and if everything goes as planned “we will have a record year in 2022”.
Asked when the company could cross the 100 units annual sales mark in India, he said the number is not important and Lamborghini would rather focus on the quality of its sales and customer care and take a gradual approach to growing the market.
Globally, Lamborghini clocked a turnover of 1.33 billion euros in the first six months of 2022, a growth of 30.6 per cent over the corresponding period of 2021. Its operating profit also grew 69.6 per cent to 425 million euros from 251 million euros in the year-ago period.